Council tax on Scotland’s most expensive homes could almost double to £7,700 a year under plans the Scottish government set out for consultation on July 6. Ministers want two new bands for properties worth more than £1 million, a change widely called a mansion tax. The bands would take effect from 1 April 2028, if the Scottish Parliament agrees.
Scotland has eight bands now, A to H. The proposal adds Band I for homes valued between £1 million and £2 million, and Band J for anything above that. The government puts the average annual bill in Band H at about £4,051. Band I could rise to about £4,800, an increase of roughly £720. Band J could climb to about £7,651, a rise of around £3,600.
Ministers estimate the new rates would hit about 15,000 properties, or 1 percent of the country’s housing stock. They say the money, between £12 million and £16 million a year, would be shared among councils. Councils are expected to collect £3.5 billion in council tax in 2026-27, so the top estimate is an increase of 0.45 percent. The rates in the consultation paper are illustrative. Final figures will be written into legislation.
A revaluation first
Existing bands rest on 1991 valuations, so the government cannot simply slot homes into the new bands. Scottish Assessors would carry out a “targeted revaluation” of every property estimated to be worth more than £1 million, whatever its current band. Ministers have set aside £5 million for that work. Primary legislation would also be needed, and the April 2028 date is meant to give assessors time to finish, councils time to update their systems and households notice of any change.
The policy was first announced in the Scottish Budget 2026-27 and appears in the SNP’s 2026 manifesto and 100 Days Plan. High-value homes are not spread evenly. They cluster in and around cities, Edinburgh above all, and in some rural areas. Registers of Scotland data shows 391 properties sold for more than £1 million in 2024-25, and more than half were in the capital.
Backing and criticism
Deputy First Minister Jenny Gilruth said the government’s approach to tax “is based on fairness, asking the wealthiest among us to contribute a bit more”. She added: “As it stands, some multi-million pound properties have council tax bills that are not materially different from those faced by people living in far more modest homes.”
Green MSP Lorna Slater called the launch an “important milestone” and said the tax “will raise vital funds for schools, libraries and other local services, while helping to respond to Scotland’s housing emergency.”
Scottish Conservative finance spokesperson Craig Hoy said it could put people off buying in Scotland. “In targeting a small minority of properties, the revenues these new bands would bring in won’t touch the sides,” he said, “and that’s before the administrative costs are factored in.”
The consultation is separate from the government’s wider engagement on council tax reform, including the Future of Council Tax in Scotland consultation. There is cross-party agreement that the old system needs reform, but none on how. The UK government has also announced a mansion tax on properties in England valued above £2 million.
Sources
- Council Tax High-Value Property Bands (Mansion Tax): consultation
- 'Mansion tax' to double rates on Scotland's most expensive homes
- 'Mansion tax' to double rates on Scotland's most expensive homes
- Council Tax
Sources
- Council Tax High-Value Property Bands (Mansion Tax): consultation
- 'Mansion tax' could double rates on Scotland's most expensive homes
