Do you pay council tax if you have dementia?

Everything you need to know about who is eligible for a discount on council tax for dementia, the council tax dementia reduction process and how to apply for council tax reduction due to dementia.

If you have been diagnosed with dementia, you may be entitled to a Council Tax exemption or a reduction in the UK.

The guidance applies to England, Wales and Scotland. In Northern Ireland, you can be eligible for a 25% discount from rates, if you or someone living with you has a disability.

At a glance

• If you are diagnosed with dementia, you may be eligible for a council tax exemption or council tax discount.
• To qualify, you must have a GP-certified diagnosis and receive a qualifying benefit.
• The council discount depends on who lives in the property e.g. 100% exemption if the person with dementia lives alone, 25% discount if they live with one adult.
• You must apply for the discount via your local council which requires medical certification and proof that you receive a qualifying benefit.

What is council tax?

Council tax is a charge that local authorities impose on residential properties in the UK, to help pay for local services. The tax applies to owner-occupied homes and rented homes. 

Do you pay council tax if you have dementia?

Someone diagnosed with dementia may qualify for a Council Tax discount because dementia is included as a Severe Mental Impairment (SMI) for Council Tax purposes.

Dementia is recognised as a progressive neurological condition by the NHS.

Having dementia does not automatically qualify you as having a severe mental impairment because you must ask your doctor for the specific certificate to confirm this.

You must also be claiming a qualifying benefit to get a Severe Mental Impairment Council Tax Discount in England, Wales and Scotland.

What is a Severe Mental Impairment (SMI) for Council Tax?

For Council Tax purposes, SMI refers to ‘a severe impairment of intelligence and social functioning which appears to be permanent.’

This can include, for example, people diagnosed with Alzheimer’s disease, Vascular dementia, Lewy body dementia and other long-term cognitive disorders.

How much council tax discount can a person with dementia get?

The following guidance applies to England, Wales and Scotland (In Northern Ireland, you can be eligible for a 25% discount from rates, if you or someone living with you has a disability).

The amount of council tax discount you are eligible for, depends on who lives in the property.

1. If you qualify for SMI and live alone

If you qualify as severely mentally impaired and you live alone, you could qualify for a 100% Council Tax exemption.

This is because a person classified as SMI is ‘disregarded’ for Council Tax purposes. If you live alone, there is no one else counted as a liable adult.

2. You qualify for SMI and all adults you live with are also severely mentally impaired or full-time students  

You’ll also get a 100% discount if you qualify as severely mentally impaired and any other adults in your household either qualify as severely mentally impaired or are full-time students.

2. If you are SMI and live with one other adult

If you are severely mentally impaired you are not counted for Council Tax purposes but if you live with an adult who does not have a SMI, you get a 25% council tax discount.

3. If you have a SMI but you live with two or more adults who do not have SMI.

If you qualify for SMI and live with two or more adults in your household who do not have severe mental impairments, you will not get any council tax discount.

4. If person with dementia lives with up to two adults who are their full-time carers

If you live with one or two adults who are your full-time carers (caring at least 35 hours a week), you will get a 50% Council Tax discount. Your carer cannot be your partner and the person being cared for must receive certain benefits.

For more details, you can read this article about Carer Council Tax Discount: Who is eligible?. 

5. If the person with dementia lives only with ‘disregarded’ individuals

If the person with dementia lives in a property that is only occupied by people who are considered ‘disregarded’ you will get a 50% council tax discount.

People who are disregarded from paying Council Tax include:

• a live-in carer for someone who is not your partner, spouse, or child under 18.

• under 18 years old.
• on certain apprentice schemes.
• 18 or 19 years old and in full-time education.
• a full-time student at college or university.
• under 25 years old and get funding from the Education and Skills Funding Agency
• a student nurse.
• a foreign language assistant registered with the British Council
• severely mentally impaired.
• a diplomat.

Do you pay council tax if you have dementia and move into a care home?

If someone with dementia moves permanently into a care home, their previous home may become exempt from Council Tax, depending on circumstances.

Council tax is not charged if you have moved into a care home long-term and your property is left empty.  

However, if someone moves into your property, (e,g, family), while you are living in a care home, they must pay council tax.

You can read about this in the article Do I pay council tax if I move into a care home in 2026?.

What benefits make me eligible for a Severe Mental Impairment Council Tax Discount?  

To qualify for Severe Mental Impairment Council Tax Discount in England and Wales, you must be claiming at least one of the benefits below.

In Scotland, you need to be eligible for at least one, but don’t necessarily need to be claiming it.

The benefits include:

• Attendance Allowance.
• Severe Disablement Allowance.
• Incapacity Benefit.
• Higher or middle rate care component of Disability Living Allowance (this benefit is being replaced by PIP).
• Standard or enhanced rate or Personal Independence Payment (in Scotland, this benefit is being replaced by Adult Disability Payment).
• Constant Attendance Allowance.
• Disablement pension which has been increased owing to the need for constant attendance.
• Unemployability Supplement or Allowance.
• Income Support, including disability premium.
• Armed Forces Independence Payment.
• Universal Credit, if you qualify owing to having limited capacity to work.
• Disability Working Allowance.
• Tax credits (including disability element).

How to apply for council tax reduction due to dementia

When it comes to how to apply for council tax reduction due to dementia, you must: 

• Ask your local council for a Severe Mental Impairment Council Tax Discount form and complete it.
• Get a certificate from a registered medical professional, such as GP confirming you are severely mentally impaired (e.g. dementia).  A GP or medical professional must confirm the medical diagnosis in writing as part of the application.
• Provide evidence that you receive certain qualifying benefits (see above). 

Can a Council Tax reduction be backdated?

Yes. Many councils will backdate claims to when the person first became eligible, so it’s worth applying even if the diagnosis was some time ago.

In many cases, councils will backdate the reduction to:

• The date of diagnosis
• Or the date qualifying benefits began

You may need to provide supporting documentation.

Many councils will backdate claims to when the person first became eligible, so it’s worth applying even if the diagnosis was some time ago.

Do I need to reapply for a reduced council tax for dementia each year?

Usually no. Once approved, the reduction continues unless circumstances change.

What if my application for SMI Council Tax Discount is refused?

You can ask your council to review the decision. If necessary, you can appeal to your local authority.

If this is refused, you can further appeal to the Valuation Tribunal in England or Wales. This must be done within two months of receiving the decision.    

Applying for a council tax discount or exemption can ease financial pressure and help families focus on what matters most – accessing the right care and support. 

For help finding dementia care services in your area, visit homecare.co.uk.

FAQs