Do Students Pay Council Tax In The UK? All You Need To Know

When you’re studying in the UK, managing your finances can quickly become overwhelming. One of the most common questions students ask is: Do students pay council tax? Council tax can feel like a complicated and confusing expense, especially if you’re new to living in the UK. Understanding who is responsible for paying council tax, when students are exempt, and how to apply for that exemption is essential to avoid unexpected bills.

Whether you’re living alone, sharing with housemates, or staying in university halls, the rules can differ, and knowing your rights is crucial. This guide breaks down everything you need to know about council tax from a student’s perspective. You’ll find clear answers on eligibility, exemptions, and practical steps to handle your council tax situation smoothly. By the end, you’ll be equipped to manage your budget confidently and avoid any surprise charges. 

What Is Council Tax in the UK?

Council tax is a local tax charged by councils across England, Wales, Scotland, and Northern Ireland on domestic properties. It helps fund essential local services such as:

• Waste and recycling collection
• Policing and fire services
• Schools and libraries
• Roads and street lighting
• Social care services

Every household has to pay this tax unless it is exempt or eligible for discounts. The amount depends on the property’s valuation band and local council rates.

How Is Council Tax Set and Collected?

• Valuation bands: Properties are assigned a band from A to H (in England and Wales), based on their estimated market value as of a certain date. Band A pays the least, Band H the most.
• Local authority rates: Councils set annual charges based on their budget needs. These can vary widely between areas.
• Billing authorities: These are local councils responsible for billing and collecting council tax (e.g., district councils, unitary authorities, London boroughs).
• Precepting authorities: Police, fire services, and parish councils also receive a portion of council tax funds.

Your council tax bill clearly shows the breakdown of charges and who receives the revenue.

Who Usually Pays The Council Tax?

Typically, the liable person for council tax is the adult in the household responsible for paying the rent or owning the property. Important points include:

• Generally, anyone aged 18 or above living in the property can be liable.
• If multiple adults live there, usually one person is responsible for the entire bill unless arranged otherwise.
• Discounts or exemptions may apply depending on the occupants’ circumstances.
• Non-residential properties or second homes may have different rules.

Do Students Pay Council Tax?

Whether or not students pay council tax largely depends on their student status and the household composition. Here are some common scenarios that explain when students are exempt and when council tax may apply.

Scenario 1: Students Living with Non-Students

If a student shares a property with one or more non-students (working adults, part-time students, or others who don’t qualify), the non-students are liable for council tax.

• The household won’t generally receive a full exemption because not everyone is a full-time student.
• The bill is typically charged with a discount, usually 25% for a single non-student occupant or the full amount split among liable adults.
• Example: A house with 3 full-time students and 1 working adult will require that working adult to pay council tax.

Scenario 2: All Students in the Household

If everyone living in the household is a full-time student, the property is usually exempt from council tax.

• This exemption means no council tax bill will be issued for that property.
• This is common in student halls of residence and shared houses with only students.
• Students must provide proof of their status (e.g., a certificate from their university).

Scenario 3: Landlords and Council Tax

• For student halls of residence or purpose-built student accommodation (PBSA), the landlord is typically liable for council tax, not the students.
• Private landlords renting to students should be aware that their properties may be exempt, reducing their liability.
• In privately rented homes not exclusively occupied by students, landlords and tenants should clarify council tax responsibilities.

Scenario 4: Students Living with Family

• Students living in the family home are usually not liable for council tax; the family members (parents or guardians) remain responsible.
• The student’s full-time status can exempt them from being counted as liable adults in the calculation.

Scenario 5: Leaving Your Course / Graduating

Once a full-time student finishes their course and graduates:

• The student exemption ends from the date the course finishes.
• After this, they will typically become liable for council tax unless other exemptions apply.
• If they stay in a student house after graduation and others remain full-time students, the council tax liability depends on the remaining residents.

Scenario 6: Part-Time Students

• Part-time students are not exempt from council tax.
• If all occupants are part-time students or non-students, council tax must be paid in full or discounted according to other rules.

How is a Council Tax Bill Calculated?

The council tax charge depends on several factors:

Discounts for Full-Time Students

Most full-time students in the UK can benefit from significant council tax reductions or even full exemption. This acknowledges that students often have limited incomes.

• 100% Exemption for All-Student Households: 

Properties occupied solely by full-time university or college students are exempt from council tax. This includes student halls of residence, which are automatically exempt. If you receive a bill for such a property, you must apply for the exemption.

• 25% Discount for Households with One Non-Student: 

If you live with at least one non-student adult (someone who does not count as a student for council tax purposes), the property will not be fully exempt. However, the non-student may qualify for a 25% single person discount if they are the only adult counted for council tax. This applies when, for instance, one working adult lives with full-time students.

• Other Potential Discounts: 

Your household might qualify for other council tax reductions if it includes individuals who are “disregarded” for council tax purposes. Full-time students are among those who are disregarded, meaning they are not counted when calculating the number of adults in a property for council tax purposes. This can lead to a discount for the liable residents. Other categories of disregarded individuals include certain school leavers under 20 and people with disabilities, which can also lead to council tax reductions.

Also Read: Top 10 UK Scholarships For PhD Students In 2025!

The General Rule: Full-Time Student Exemption

Generally, a full-time student exemption applies when a property is occupied only by students enrolled in full-time courses. To qualify for this exemption, the course must meet certain minimum requirements defined by councils and government guidance:

• The course must last at least one academic or calendar year.
• Students must study or attend a minimum of 21 hours per week. This includes lectures, independent study, workshops, and placements required by the course, but typically excludes travel time and meal breaks.
• The student must attend an educational institution in the UK or a member state of the European Economic Area.
• Distance learning students generally don’t qualify unless they also attend the institution in person for the required hours.
• Work placements undertaken as part of the course count as study only if they are less in duration than the periods of coursework.

Also Read: What Are Education Tax Credits? A Complete Guide: 2025

There are some exceptional cases – such as foreign language assistants, students under 20 studying certain types of courses, or students studying part of their course abroad (within Europe) – where exemptions may still apply. However, if your course is short-term, part-time, or you repeat years without registered attendance, you may not be eligible.

The full-time student exemption is not automatic; you must inform your local council and provide proof that you meet these conditions.

Steps to Claim the Student Exemption

• Contact your local council as soon as you move into your accommodation or begin your course. Most councils have online systems or forms specifically for student council tax exemption applications.
• Contact your local council as soon as you move into your accommodation or begin your course. Most councils have online systems or forms specifically for student council tax exemption applications.
• Provide official proof of your student status. This usually involves submitting a student certificate or an enrolment letter issued by your university or college. Universities often provide a council tax exemption certificate or letter automatically upon registration, which you should keep accessible.
• Complete any required council tax exemption forms. Councils may have different processes and additional documentation requirements, such as tenancy agreements or proof of residence.
• Keep your council informed if your circumstances change. For example, if you leave your course, graduate, start a part-time course, or if someone moves in or out of your household, you must update the council. Failing to do so can result in penalties or backdated bills.

Documents to Prepare:

• Student enrolment certificate or letter.
• Tenancy agreement or confirmation of address.
• Any income verification documents, if requested, such as student loan statements.
• Identification documents, if required.

Tips:

• Apply early to avoid receiving a bill prematurely.
• Retain copies of all communications with the council.
• If you study away from home during term but maintain your address as your main residence, confirm your exemption status to avoid misunderstandings.

Still wondering, do students pay council tax? If you’re a full-time student living alone or with other students, you’re likely exempt. But if you’ve graduated, work part-time, or live with non-students, you may need to pay. Check with your local council, share the right documents, and confirm your discount or exemption in time.

Understanding how council tax works gives you more control over your budget and fewer surprises during your studies. Stay sharp, save where you can, and focus on what really matters.

Also Read: Updated Guide To The Cost Of Studying In The UK – 2025

Take control of your student budget by choosing student accommodation in the UK wisely. UniAcco’s verified PBSAs are designed for students and usually exempt you from council tax. With fewer bills to worry about, you can fully focus on your studies and student life.

FAQs

1. Do students pay council tax if they live with non-students?

If any non-students live with you, they are generally liable for council tax. Students in such households usually do not have to pay.

2. Do PhD students pay council tax?

PhD students are considered full-time students if their course meets requirements and usually qualify for exemption, but this can vary by council.

3. Do students need to pay council tax if living alone?

Full-time students living alone or with other full-time students are exempt from council tax.

4. Do landlords pay council tax for students in halls?

Yes, for university-managed halls or purpose-built student accommodation, landlords usually pay council tax, not the students.

5. What happens when students graduate in terms of council tax?

Student exemption ends on the course end date. After graduation, students become liable to pay council tax unless other exemptions apply.