Example of Council Tax Reduction calculation
The amount of Council Tax Reduction you can get with depend on your income and your personal circumstances. Below are examples of Council Tax Reduction calculations based on various circumstances.
You get Income Support, Job Seekers Allowance (Income Based) or Employment and Support Allowance (Income Related)
You will get 75 per cent of your Council Tax charge and you will have to pay the remaining 25 per cent.
Example:
- Council Tax charge: £18.45 per week
- Entitlement with 25 per cent reduction: £13.84 per week
You will need to pay: £4.61 per week (not including any non dependant deductions)
You are working
If you do not have any excess income (the amount of income over your applicable amount) your Council Tax Reduction will be calculated as the example above. If you have excess income, the income taper of 20 per cent (previously 25 per cent) will be used to calculate the amount of reduction you will receive, and then a further 25 per cent reduction will be applied.
Example:
- Council Tax liability: £18.45 per week
- Excess income: £40.00
- 20 per cent of excess income: £8.00 so £10.45 remaining
- Then reduced £10.45 by 25 per cent: a further £2.61 per week (benefit award £7.84 per week)
You will need to pay: £10.61 per week (not including any non dependant deductions)
You are pensionable age
If you do not have any excess income (the amount of income over your applicable amount) your Council Tax Reduction will cover the full cost of your Council Tax liability (less any non dependant deductions).
If you have excess income, the income taper of 20 per cent will be used to calculate the amount of reduction you will receive.
Example:
- Council Tax liability: £18.45 per week
- Excess income: £40.00
- 20 per cent of excess income: £8.00
- Weekly CTRS entitlement: £10.45 per week
You will need to pay: £8.00 per week (not including any non dependant deductions)
You receive a War/War Widows pension
If you do not have any excess income (the amount of income over your applicable amount) your Council Tax Reduction will cover the full cost of your Council Tax liability (less any non dependant deductions).
If you have excess income, the income taper of 20 per cent will be used to calculate the amount of reduction you will receive.
Example:
- Council Tax liability: £18.45 per week
- Excess income: £40.00
- 20 per cent of excess income: £8.00
- Weekly CTRS entitlement: £10.45 per week
You will need to pay: £8.00 per week (not including any non dependant deductions)
Please note: The above are examples only. Calculations are based on your personal circumstances and income.
