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Do you pay Council Tax on an annexe?
For people with an annexe or granny flat, or a relative living in one.
Applies to: England Last checked against official sources: 6 October 2026
A self-contained annexe usually has its own Council Tax band, but you may pay less or nothing.
- It is exempt if a dependent relative lives there as their main home: someone aged 65 or over, or who is severely mentally impaired, or substantially and permanently disabled.
- You can get 50% off if you use the annexe as part of your main home, or a relative of the main house's bill payer lives there.
- An empty annexe is exempt if planning rules stop it being let separately.
- Ask your council, which decides.
Different in Wales and Scotland
Different in Scotland, Wales or Northern Ireland
Rules may be different in:
- Scotland: Check mygov.scot for Scotland
- Wales: Check gov.wales for Wales
- Northern Ireland: Check nidirect for Northern Ireland
Key facts
- Own band if self-contained
- Exempt for a dependent relative
- 50% off for family use
- Empty annexe may be exempt
What counts as an annexe
An annexe is a self-contained part of a property, such as a granny flat over a garage or a converted outbuilding. If it has its own living space, it is usually treated as a separate home for Council Tax. GOV.UK says that if you change a property to create 2 or more self-contained units, such as an annexe, each unit gets its own band.
That means the annexe can get its own bill. But there are 3 common ways to pay less, or nothing at all.
The main rules in England
| Situation | What you pay on the annexe |
|---|---|
| A dependent relative lives there as their main home | Nothing (exempt) |
| You use it as part of your own main home | 50% off |
| A relative of the main house's bill payer lives there | 50% off |
| It is empty and planning rules stop you letting it separately | Nothing (exempt) |
A dependent relative means a relative who is aged 65 or over, or is severely mentally impaired, or is substantially and permanently disabled.
For the 50% discount, "relative" is wide. It includes a husband, wife or civil partner, parents, children, stepchildren, grandparents, grandchildren, brothers, sisters, aunts, uncles, nieces and nephews.
Example
Maria owns a house with an annexe in the garden. Her son, aged 30, lives in the annexe as his main home. He is a relative, so the annexe bill gets 50% off.
Later, Maria's father, aged 78, moves into the annexe instead. He is a relative aged over 65, so the annexe becomes exempt and there is nothing to pay on it.
Annexes and the second homes premium
Councils in England can charge extra on second homes. An annexe that forms part of the same property and is used with your main home is an exception, so the premium does not apply. An empty annexe can also be fully exempt from Council Tax, as the table above shows.
How to apply
Contact your local council. You may need to show how the person is related to you and, for a dependent relative, proof of their age or disability. GOV.UK has a postcode tool to find your council's discount page. The council decides whether you qualify.
If you are on a low income, you can also ask about Council Tax Reduction.
If you live in Scotland or Wales
- Wales: an annexe lived in by a dependent relative (aged 65 or over, with a significant cognitive impairment, or with a substantial and permanent disability) is exempt. An empty annexe that planning rules stop you letting separately is also exempt.
- Scotland: the mygov.scot discounts guide does not cover annexes, so ask your council directly.
Related guides
- Who is exempt from Council Tax?
- How do I check my Council Tax band?
- Can I get money off Council Tax if I live alone?
- Do I pay Council Tax on a second home or empty property?
- Who pays council tax?
Where this comes from
- GOV.UK: working out your Council Tax
- GOV.UK: Paying the right level of Council Tax, a plain English guide
- Council Tax (Reductions for Annexes) (England) Regulations 2013
- Council Tax (Exempt Dwellings) Order 1992, classes of exempt homes
- GOV.UK: second homes and empty properties
- GOV.UK: apply for a Council Tax discount
- Welsh Government: Council Tax discounts, disregards, exemptions and reductions
- mygov.scot: Council Tax discounts, exemptions and reductions
Get it done
This takes you to the official service, which is free to use.
Ask your council about a discountCommon questions
Who counts as a dependent relative for an annexe?
Can I get the 50% annexe discount if my adult child lives there?
Official sources
- 1.Council Tax: working out your Council Taxwww.gov.uk/council-tax
- 2.Paying the right level of Council Tax: a plain English guidewww.gov.uk/government/publications/paying-the-right-level-of-council-tax-a-plain-english-guide-to-council-tax/paying-the-right-level-of-council-tax-a-plain-english-guide-to-council-tax
- 3.Council Tax (Reductions for Annexes) (England) Regulations 2013www.legislation.gov.uk/uksi/2013/2977/made
- 4.Council Tax discounts, disregards, exemptions and reductions (Wales)www.gov.wales/council-tax-discounts-disregards-exemptions-and-reductions
- 5.Council Tax discounts, exemptions and reductions (mygov.scot)www.mygov.scot/council-tax/discounts-exemptions-and-reductions
- 6.Council Tax: second homes and empty propertieswww.gov.uk/council-tax/second-homes-and-empty-properties
Checked against GOV.UK on 6 October 2026
Related guides
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