Council tax refunds and overpayments

Council tax By Council Tax Helpline, 10 September 2026

In short

• Overpaid council tax should be refunded, or credited to your account.
• Backdated discounts and exemptions, such as for severe mental impairment, can bring refunds of thousands of pounds.
• A successful band challenge can bring a refund back to when you moved in.
• When you move out, any credit on your old account should be refunded.
• Ask in writing, and ask for any refund to go to you rather than to next year's bill.

When you may be owed a refund

• You paid more than the bill, for example two payments in one month
• A discount or exemption is backdated, such as the single person discount, a student exemption, or the severe mental impairment disregard
• Your band is reduced after a challenge, which can go back to when you moved in
• You moved out and paid for time after you left
• Someone has died, and the home became exempt
• Council Tax Reduction was awarded and backdated

The biggest refunds

The largest refunds usually come from help that should have been given years earlier. The severe mental impairment disregard, for example for someone with dementia, can be backdated to when they first qualified, and refunds of thousands of pounds are not unusual. See council tax and dementia.

How to claim

1. Write to your council, explaining why you think you have overpaid, with any evidence.
2. Ask for a refund, rather than a credit to your account, if you would rather have the money. Councils often credit next year’s bill unless asked.
3. If you have arrears for another year, the council may use the refund to reduce them.

If you are behind with council tax

A backdated discount or exemption does not just give a refund. It can reduce or clear arrears, which can stop enforcement. Check before you agree to pay anything. See discounts and exemptions.

Beware of refund scams

Councils do not text or email out of the blue offering refunds and asking for your bank details. If you get a message like that, do not click the link. Contact your council directly.