25% single person discount applies
Reg. 07380272 · England & Wales · Est. 2010
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Estimated Annual Reduction
£78.52
Final Annual Bill
£1,271.48
Monthly Equivalent
£105.96
Weekly Reduction
£1.51
Everything you need to know about Council Tax Reduction in the UK
What is Council Tax Reduction?
Council Tax Reduction (CTR), sometimes called Council Tax Support, is a local authority benefit that helps people on low incomes pay their council tax. It replaced the national Council Tax Benefit scheme in April 2013. Each local authority in England now runs its own scheme for working-age claimants, while pension-age claimants are covered by a national scheme. The amount of reduction you receive depends on your income, savings, household composition, and your local authority's specific rules. If you qualify, the reduction is applied directly to your council tax bill.
How is the reduction calculated?
The reduction is calculated by comparing your weekly income to an 'applicable amount' — a figure that represents the minimum the government says you need to live on. If your income is below the applicable amount, you may receive the maximum reduction (up to 100% of your council tax, depending on your local scheme). If your income is above the applicable amount, the excess is tapered at 20% — meaning for every £1 of income above the applicable amount, your council tax support is reduced by 20p per week. Capital and savings above £6,000 also generate a 'tariff income' of £1 per week for every £250 above that threshold.
What is the capital limit?
For most Council Tax Reduction schemes, the upper capital limit is £16,000. If your total savings and capital exceed this amount, you will not qualify for any Council Tax Reduction. Capital below £6,000 is completely disregarded — it does not affect your entitlement at all. For capital between £6,000 and £16,000, a 'tariff income' of £1 per week is assumed for every £250 (or part of £250) above the £6,000 lower threshold. This tariff income is added to your actual weekly income when calculating the taper reduction. Some local authorities may have different capital limits for their working-age schemes.
Do I get the single person discount too?
Yes, the 25% single person discount on council tax is a separate entitlement that applies before your Council Tax Reduction is calculated. If you are the only adult living in your property (or the only adult who counts for council tax purposes), you automatically qualify for the 25% discount. Your Council Tax Reduction is then calculated based on the discounted amount. This means you can benefit from both the single person discount and Council Tax Reduction at the same time, potentially significantly reducing your council tax bill.
Key Thresholds
Capital Lower Limit
Savings below £6,000.00 are fully disregarded and do not affect your entitlement.
Capital Upper Limit
Savings above £16,000.00 mean you are not eligible for Council Tax Reduction.
Taper Rate
For every £1 of income above the applicable amount, your weekly reduction is decreased by 20p.
Single Person Discount
A 25% discount applies automatically if you are the sole adult occupant, reducing the bill before CTR is calculated.
Important: This calculator provides an estimate based on a simplified version of the Council Tax Reduction rules. Actual entitlement varies by local authority and may depend on additional factors such as disability premiums, carer’s status, and specific local scheme rules. Contact your local council for a definitive assessment.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms