Do Pensioners Pay Council Tax? Discounts & Exemptions Explained

Pensioners in the UK may qualify for council tax reductions or exemptions. Learn about discounts, Pension Credit benefits and how to apply for help.

Council tax is a major household expense, and many pensioners wonder whether they still have to pay once they retire. While pensioners do have to pay council tax, there are discounts, exemptions, and benefits that can significantly reduce or eliminate the amount owed.

This guide explains when pensioners must pay council tax, who qualifies for reductions, and how to apply for help.

Do Pensioners Have to Pay Council Tax?

Pensioners must pay council tax unless they qualify for an exemption or discount. However, many pensioners are eligible for reductions based on income, disability, or living circumstances.

The amount a pensioner pays depends on:

  1. Their income, including pensions and savings.

  2. Whether they live alone or with others.

  3. If they receive benefits like Pension Credit.

  4. Any disabilities or medical conditions affecting household members.

What Council Tax Discounts Are Available for Pensioners?

There are several ways pensioners can reduce or eliminate their council tax bill.

1. Single Person Discount – 25% Off

  • If you live alone, you can apply for a 25% council tax discount.

  • This applies to all age groups, including pensioners.

2. Council Tax Reduction (CTR) – Up to 100% Off

  • If you are on a low income or receiving Pension Credit, you may qualify for Council Tax Reduction (CTR).

  • Some pensioners on low incomes pay no council tax at all.

  • Each local council has different rules, so it’s important to check with your council.

3. Pension Credit & Council Tax Exemptions

  • Pensioners receiving Guarantee Credit (part of Pension Credit) often qualify for full council tax exemption.

  • Those receiving Savings Credit may still get a partial reduction.

4. Severe Mental Impairment (SMI) Exemption

  • If a pensioner (or someone they live with) has a severe mental impairment (e.g., dementia, Alzheimer’s), they may be completely exempt from council tax.

  • If a pensioner with SMI lives alone, they qualify for 100% council tax exemption.

  • If they live with one other adult, they qualify for a 25% discount.

5. Disability Reduction Scheme

  • If a pensioner (or a household member) has a disability that requires extra space (e.g., using a wheelchair indoors or needing an extra bathroom for medical reasons), they may qualify for a reduction in council tax band.

  • This usually lowers the council tax band by one level.

6. Local Council Support Schemes

  • Some councils offer additional discretionary discounts for pensioners struggling with council tax payments.

  • These vary by location, so check your local council’s website.

Do Pensioners Still Pay Council Tax If They Are in a Care Home?

If a pensioner moves into a care home permanently, they no longer need to pay council tax on their previous home, provided it is unoccupied.

  • If the property is left empty, council tax is waived.

  • If someone else moves in, council tax is based on who is living in the home.

How to Apply for a Council Tax Reduction as a Pensioner

If you believe you are eligible for council tax reductions or exemptions, follow these steps:

  1. Check Your Local Council’s Website – Search for "Council Tax Reduction" on your council’s website.

  2. Fill Out an Application Form – Most councils allow online applications.

  3. Provide Evidence – You may need to submit proof of income, benefits, or medical conditions (e.g., Pension Credit award letters or a doctor’s certificate for SMI claims).

  4. Wait for Approval – Councils typically process applications within a few weeks.

Final Thoughts

Most pensioners do have to pay council tax, but many can qualify for discounts or full exemptions depending on their income, benefits, or medical conditions.

  • Pensioners on Pension Credit Guarantee often pay no council tax.

  • Those living alone get a 25% discount.

  • Those with severe mental impairments can be fully exempt.

  • Disability-related adjustments can reduce council tax bands.

If you are unsure whether you qualify for a council tax reduction, contact your local council or visit Gov.uk to check your eligibility.