Newcastle Council Tax Reduction Income Bands 2026/27

Newcastle City Council switched from a traditional means test to an income-banded system back in 2018, and for 2026/27 it runs on five bands. Your net weekly household income determines which band you fall into, and that band sets your discount as a flat percentage of your council tax bill.

The 2026/27 Income Bands

All thresholds are indexed to the September Retail Price Index and rounded to the nearest £5. These are the current limits for each household type:

Band 1 — 100% discount

• Single: £0 to £110
• Couple: £0 to £160
• Family (1 child): £0 to £255
• Family (2+ children): £0 to £350

Band 2 — 90% discount

• Single: £110.01 to £160
• Couple: £160.01 to £220
• Family (1 child): £255.01 to £305
• Family (2+ children): £350.01 to £370

Band 3 — 85% discount

• Single: £160.01 to £215
• Couple: £220.01 to £275
• Family (1 child): £305.01 to £380
• Family (2+ children): £370.01 to £425

Band 4 — 50% discount

• Single: £215.01 to £330
• Couple: £275.01 to £380
• Family (1 child): £380.01 to £465
• Family (2+ children): £425.01 to £515

Band 5 — 25% discount

• Single: £330.01 to £425
• Couple: £380.01 to £485
• Family (1 child): £465.01 to £570
• Family (2+ children): £515.01 to £630

Above those upper thresholds, you get nothing.

How Net Income Is Calculated

Your assessed income starts with gross earnings minus Income Tax, National Insurance, and half of qualifying pension contributions. If you have earned income, Newcastle then applies a weekly earnings disregard:

• Single person: £7.50
• Couple: £12.50
• Lone parent: £17.50

After the disregard, that final figure is what gets matched against the bands.

Benefits like PIP, DLA, Child Benefit, and child maintenance are completely ignored. Universal Credit housing costs are also excluded. But UC debt deductions by the DWP are not subtracted — the council uses your gross UC entitlement.

Passported Groups Skip the Bands Entirely

If you receive income-related ESA, Income Support, or income-based JSA, you go straight to Band 1 at 100%. The same applies to care leavers under 25 and qualifying households caring for a terminally ill member.

A Quick Worked Example

A single person earning £150 per week in a Band A property (£32.57/week gross tax) with a 25% Single Person Discount:

1. Net tax liability: £32.57 − £8.14 (SPD) = £24.43
2. Income after disregard: £150 − £7.50 = £142.50
3. That puts them in Band 2 (£110.01–£160) → 90% discount
4. Weekly CTS: 90% × £24.43 = £21.99
5. They pay £2.44 per week — about £10.57 per month

For more worked examples covering couples, families, self-employed income, and non-dependant deductions, the Newcastle Council Tax Reduction guide has five full calculations using 2026/27 rates.

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