Council Tax Reduction Calculator
Estimate your Council Tax Reduction (Council Tax Support) for 2025/26. See how a low income could cut your bill — by up to 100% for pensioners.
Council Tax Reduction estimator
A guide to your means-tested discount.
Schemes vary by council. Apply via GOV.UK Council Tax Reduction.
What Council Tax Reduction is
Council Tax Reduction — sometimes called Council Tax Support — is a means-tested discount that can cut your council tax bill by up to 100%. It replaced the old Council Tax Benefit in 2013, and unlike most benefits it is run by your local council, not the DWP. That means every council has its own scheme, so the exact reduction depends on where you live.
Pensioners are protected by a national scheme that can wipe out the whole bill. Working-age schemes vary — many cap support at around 70–90% of the bill, so even the poorest working-age households often pay a small amount.
How the reduction is worked out
The council compares your income to your "applicable amount" (the basic level the rules say you need to live on). If your income is at or below that, you get the maximum support your council allows. Above it, support tapers away — typically by around 20% of the excess income for working-age schemes. Savings over £16,000 usually rule you out, unless you receive Pension Credit Guarantee Credit.
Council Tax Reduction vs other discounts
| Discount | Based on | Typical value |
|---|---|---|
| Single person discount | Living alone | 25% |
| Council Tax Reduction | Low income (means test) | Up to 100% |
| Disabled band reduction | Adapted home | One band lower |
| Student exemption | All-student home | 100% |
You can combine some of these. Source: GOV.UK.
Worth checking even on Universal Credit
Council Tax Reduction is separate from Universal Credit — UC never covers council tax. Many people on UC miss out simply because they assume their benefits already include it. If you have a council tax bill, it is almost always worth a separate claim to your council. Use the full council tax calculator to work out your starting bill first.
Frequently asked questions
What is Council Tax Reduction?
Council Tax Reduction (also called Council Tax Support) is a means-tested discount run by your local council that can cut your council tax bill by up to 100% if you are on a low income or certain benefits. Each council sets its own scheme.
Who qualifies for Council Tax Reduction?
People on a low income, Universal Credit, Pension Credit or other benefits can qualify. Pensioners are covered by a national scheme that can reduce the bill to zero, while working-age schemes vary by council, often capping support at 70-90%.
Is Council Tax Reduction the same as the single person discount?
No. The single person discount is a fixed 25% off for adults living alone, regardless of income. Council Tax Reduction is means-tested and based on your income and circumstances — you can get both.
How much Council Tax Reduction can I get?
Pensioners on the lowest incomes can have up to 100% of their bill covered. Working-age claimants are usually capped by their council's local scheme — many cap the maximum reduction at around 70-90% of the bill.
Do I apply to the council or to GOV.UK?
You apply directly to your local council, not the DWP. Use the GOV.UK 'Apply for Council Tax Reduction' tool to find your council and start a claim online.