Dorset Council Tax Income Bands 2026/27: Every Threshold Explained
The 2026/27 Income Band Grid
Dorset Council's working-age Council Tax Reduction scheme assigns your household to one of six discount bands based on net weekly income. The thresholds rose slightly from 2025/26 to account for inflation. Here are the full 2026/27 figures.
Single person: Band 1 (100%) £0–£98 | Band 2 (80%) £98.01–£135 | Band 3 (60%) £135.01–£171 | Band 4 (40%) £171.01–£209 | Band 5 (20%) £209.01–£245 | Band 6 (0%) £245.01+
Couple: Band 1 (100%) £0–£154 | Band 2 (80%) £154.01–£196 | Band 3 (60%) £196.01–£238 | Band 4 (40%) £238.01–£280 | Band 5 (20%) £280.01–£323 | Band 6 (0%) £323.01+
Family with 1 child: Band 1 (100%) £0–£180 | Band 2 (80%) £180.01–£222 | Band 3 (60%) £222.01–£265 | Band 4 (40%) £265.01–£306 | Band 5 (20%) £306.01–£349 | Band 6 (0%) £349.01+
Family with 2 children: Band 1 (100%) £0–£249 | Band 2 (80%) £249.01–£291 | Band 3 (60%) £291.01–£333 | Band 4 (40%) £333.01–£376 | Band 5 (20%) £376.01–£417 | Band 6 (0%) £417.01+
Family with 3+ children: Band 1 (100%) £0–£318 | Band 2 (80%) £318.01–£359 | Band 3 (60%) £359.01–£402 | Band 4 (40%) £402.01–£444 | Band 5 (20%) £444.01–£486 | Band 6 (0%) £486.01+
How to Calculate Your Net Weekly Income
The figure that gets compared against the grid isn't your gross pay or your total bank deposits. Dorset Council uses a specific formula:
- Start with your gross wages
- Deduct income tax, National Insurance, and 50% of any pension contributions
- Apply the £20 per week earned income disregard
- Strip out fully disregarded benefits: PIP, DLA, Carer's Allowance, Child Benefit, child maintenance
- If anyone in the household receives a qualifying disability benefit, subtract an additional £50 per week
For Universal Credit claimants, the calculation strips out the housing, carer, disabled child, and LCWRA elements from your UC award statement. Only the standard allowance and child elements count as assessable income, converted from monthly to weekly.
A Quick Worked Example
A single person earning £200 gross per week. After tax (£14) and NI (£8), net pay is £178. Apply the £20 earned income disregard: assessable income is £158 per week. That falls in Band 3 (£135.01–£171), giving a 60% discount. On a Band B property with the 25% single person discount already applied (net bill £1,200), the CTR credit would be £720 for the year — leaving £480 to pay, roughly £40 a month.
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What Changed from 2025/26
The band thresholds increased modestly. A single person's Band 1 ceiling went from £94 to £98 per week. A couple's went from £148 to £154. The structure and discount percentages stayed the same — the change just means slightly more income can fit under each tier.
The capital limit remains £6,000 for working-age claimants, and the Band E property cap is unchanged.
For the full income calculation worksheet, backdating rules, and the complete guide to navigating Dorset's scheme, see the Council Tax Reduction in Dorset guide.
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