Council tax for students: when you pay and when you don't

Student council tax catches people out every year. The basic rule is simple enough - full-time students are exempt. But the minute you mix students and non-students in one house, it gets complicated.

Who counts as a student?

You need to be on a course that lasts at least a year and requires at least 21 hours of study, tuition, or work experience per week during term time. That covers pretty much all full-time undergraduate and postgraduate courses.

You’re counted as a student from the day your course starts until the day after it officially ends - including holidays between terms. So if you’re finishing in June and starting again in September, you’re still a student over summer. You don’t lose the exemption during Easter or Christmas either.

Part-time students

Part-time students doing under 21 hours a week don’t qualify. You count as a regular adult for council tax purposes and will be liable like anyone else. This includes students doing 15-20 hours a week, evening classes, or anything that doesn’t meet the 21-hour threshold.

But what about distance learning or part-time study that happens to total 21 hours? If you’re doing the Open University or another distance learning course that meets the 21-hour requirement, you do qualify as long as the course officially requires those hours during term time. The hours don’t have to be spent in a classroom - guided independent study counts as long as it’s part of the official course requirements.

The key is what the course specification says it requires, not how many hours you personally spend. If the Open University course paperwork says students are expected to put in 24 hours a week, and that’s spread over the year with no formal term dates, you’d typically qualify because it’s still 21+ hours. But if it says 15 hours, you wouldn’t.

This trips up a lot of part-time distance learners because they work harder than required and think that counts - it doesn’t. What counts is what the institution officially requires as the course minimum.

The tricky bit: living with non-students

If everyone in the house is a full-time student, the property is exempt. No council tax at all. But add one non-student to the mix and things change.

Students are “disregarded” for council tax purposes - basically invisible. So if you’re a student sharing with one working friend, the friend pays the bill but gets a 25% single person discount because, as far as council tax is concerned, they live alone. Two non-students in the house? They split the full rate between them and the student still pays nothing.

This can cause tension in shared houses, especially if the non-student is a partner. If you’re a student living with a non-student partner, they’re liable for the bill (with 25% off if there are no other non-students). It’s worth discussing this before signing a tenancy together.

Getting your exemption certificate

Your university or college issues a council tax exemption certificate. You’ll usually find it on your student portal, sometimes called a “council tax letter” or “student status letter.” It needs to show your name, course dates, and hours of study.

Send this to your council when you register for exemption. Some councils are happy to contact the university directly; others insist on the paper certificate. Either way, don’t delay - if you get a bill and ignore it, they’ll start enforcement proceedings regardless of whether you’re actually exempt.

Halls of residence

If you’re in university-owned halls, you normally don’t need to do anything - the university handles it. Private halls are a bit different. Check whether council tax is included in your rent or whether you need to claim exemption yourself.

Gap year and intermission

What happens if you defer, take a year out, or go on intermission from your studies?

If you take a planned gap year before starting your course, you’re not a student yet - you’ll pay council tax like anyone else. The exemption starts when your course officially starts.

If you’re mid-course and your institution puts you on official intermission (suspension of studies for a period), you’re technically not a student during that intermission period. You would be liable for council tax. This is different from a sabbatical or optional year out - those sometimes count as part of the course and you might stay exempt, depending on your university’s rules and how the council interprets it.

If you’re deferring your course (you’ve been accepted but delaying start), you’re not a student yet. You only become exempt once your course officially starts on the new date.

This matters because some students take a year out after second year, do an Erasmus year abroad, or take an internship year as part of their course. Whether that year counts towards your exemption depends on whether it’s an official part of the course structure. A Erasmus year that’s compulsory or part of the degree? You’re exempt. An optional internship year you choose to do? Check with your university and your council - this varies.

The safest approach: ask your university to put in writing whether you’re “actively on a course” for council tax purposes during any gap or intermission period, and give that in writing to your council.

Research students and international students

Research students (PhD, etc.) qualify as long as they meet the 21-hours-a-week requirement. Some research students are classified as part-time by their institution and don’t qualify - check with your university.

International students follow exactly the same rules. Your visa status doesn’t affect council tax exemption. If you’re full-time, you’re exempt.

If you get a bill you shouldn’t

Don’t ignore it. Contact your council immediately, provide your student certificate, and ask for the bill to be cancelled. If you’ve been wrongly charged and already paid, they should refund you. Keep your certificate somewhere you can find it in case of disputes.

After graduation: the summer bill trap

This is the one that trips people up every year. Your exemption ends the day after your course officially finishes - and the council doesn’t automatically know when that is. So if you graduated in June and you’re still living in the same place in September, you’ll owe council tax from the end of your course.

Here’s the trap: many students stay in their student house for the summer after graduation, expecting the exemption to cover them. They don’t realise the exemption has ended. The council sends a bill in autumn covering June-September, and suddenly you owe £300-500 for three months of bills you weren’t expecting.

To avoid this, tell your council when your course ends - ideally in writing. If you’re moving out anyway, that’s fine - your council tax liability ends on the date you move. But if you’re staying, contact the council and let them know your student exemption has ended. You’ll then pay full council tax (or get a single person’s discount if you live alone).

Some people graduating in June try to dodge this by moving to a new address in August, hoping the council doesn’t catch up with them. Risky - the council can still pursue you for the period you were liable, and they’re getting better at tracking student moves through university records.

Better approach: when you know your graduation date, tell the council. If you’re staying in the same property post-graduation, switch to paying like a regular adult. If you’re moving, notify them of the change of address. Simple admin beats an unexpected bill.

Council tax and apprentices

Apprentices are largely overlooked in council tax guides, but some are disregarded just like students - and it’s not well explained anywhere.

The rule: apprentices aged under 19, or apprentices in their first year regardless of age, are disregarded for council tax purposes. This is the same “disregarded” status as full-time students - they’re invisible for banding purposes.

What this means in practice: If you’re a 17-year-old apprentice living with two non-apprentices, the property is banded for two people, and those two split the full bill. You pay nothing. If you’re a 22-year-old in year one of an apprenticeship, same deal. But if you’re a 22-year-old in year two or three, you’re liable like anyone else.

The catch: many councils and landlords don’t know about this. You might end up paying when you shouldn’t, and you might need to claim a refund. When you set up council tax as an apprentice, check with your council - ask specifically: “I’m an apprentice. Does my age and year of apprenticeship affect my liability?” Get their answer in writing.

If you move from being a disregarded apprentice (first year, age under 19) to being liable (year two, or age 19+), your council tax situation changes. Your bill will increase or appear depending on the household composition. Make sure the council knows about the change so there’s no gap or overlap in billing.

Housemates not paying

If you’re a student living with non-students, you’re not liable. But here’s the problem: if a non-student housemate doesn’t pay their share, the council can chase other people on the tenancy. Even if you’re disregarded, your non-student housemates are liable jointly and severally - meaning the council can pursue any of them for the full amount, not just asking them to pay their share.

Get written agreements about who pays what before you move in. It saves a lot of grief later - and if someone doesn’t pay, you’ve got evidence of what they were supposed to contribute.