Council Tax Relief Explained

There are two different things called Council Tax Relief, and it's worth knowing which one you're after.

MoD Council Tax Relief is for people still serving. It's a tax-free allowance under JSP 752 for personnel on qualifying operations or assignments, set at 50% of the average council tax per dwelling in England and paid as a daily rate. That was £4.32 a day from 1 May 2023, and it's uprated, so check the current figure. It covers regular personnel, mobilised reserves and Full Time Reserve Service personnel who pay council tax, Northern Ireland rates, or Contributions in Lieu of Council Tax for Service Family Accommodation.

Council Tax Reduction is the one that matters once you've left. It's a means-tested discount from your local council for people on a low income, and it has nothing to do with your service.

Everything below is about the local scheme unless it says otherwise. Each council runs its own version, so what you get varies by where you live.

Who is eligible?

For Council Tax Reduction, it comes down to your income and your circumstances rather than your service record. Being on a low income or receiving certain benefits will usually qualify you.

There are separate discounts worth knowing about. Living alone gets you 25% off, and living with someone who is severely mentally impaired can mean a discount or a full exemption.

Because every council sets its own scheme, the only reliable answer is your own council's. Their website will have the criteria and the application form, and it's a quick thing to check rather than assume.

What benefits does this provide?

Council Tax Relief offers several benefits to military service leavers and veterans:

  • Financial Savings: Reduces the overall amount of council tax payable, easing financial burdens.
  • Eligibility for Discounts: Provides access to various discounts, including single person discounts and exemptions for certain disabilities.
  • Support for Low-Income Households: Offers additional relief for those on low incomes or receiving certain benefits.
  • Temporary Exemptions: Grants temporary exemptions for properties left unoccupied due to deployment or relocation.
  • Backdated Claims: Allows for backdated claims, ensuring veterans can receive relief for previous periods of eligibility.
  • Simplified Application Process: Streamlined application procedures tailored for veterans and service leavers.
  • Local Authority Support: Access to dedicated support from local councils to assist with the application and understanding of entitlements.

These benefits collectively help ease the transition to civilian life by providing essential financial support and stability.

How do I apply?

  • Check Eligibility: Verify if you qualify for council tax relief. Common criteria include low income, single occupancy, or being a full-time student.
  • Gather Documentation: Collect necessary documents such as proof of income, military discharge papers, and identification.
  • Contact Local Council: Reach out to your local council office. You can find contact details on their official website.
  • Complete Application Form: Fill out the council tax relief application form. This can often be done online or via a paper form.
  • Submit Application: Submit your completed form along with the required documents. This can usually be done online, by mail, or in person.
  • Await Decision: The council will review your application and notify you of their decision. This process may take a few weeks.
  • Follow Up: If you do not hear back within the expected timeframe, contact the council to check the status of your application.

Common questions

Do veterans get a council tax discount?

Not automatically for being a veteran. What is available is Council Tax Reduction, a means-tested discount from your local council based on your income, which you apply for directly.

How much is MoD Council Tax Relief?

It is set at 50% of the average council tax per dwelling in England and paid as a daily rate. That was £4.32 a day from 1 May 2023, and it is uprated, so check the current figure.

What is the difference between Council Tax Relief and Council Tax Reduction?

Council Tax Relief is an MoD allowance for serving personnel on qualifying operations. Council Tax Reduction is a means-tested discount from your local council, and it is the one that applies once you have left.

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Last reviewed 26 August 2026 by Brittany Belt, Co-founder and COO