Council tax on the most expensive homes in Scotland could climb to about £7,700 a year, almost double the current top rate, under plans the Scottish government put out for public consultation on 6 July 2026. Ministers say the so-called mansion tax could raise between £12m and £16m annually, shared among councils.
By comparison, the BBC noted, local authorities are expected to collect £3.5bn in council tax in 2026-27. At the top of the range, the new money would add 0.45%.
How the new bands would work
Scotland has eight council tax bands, A to H. The plan adds two. Band I would cover homes valued between £1m and £2m, and Band J anything worth more. The government puts the average annual bill in the current top bracket, Band H, at about £4,051. In Band I that could rise to about £4,800, and in Band J to about £7,651.
The increases work out at roughly £720 for houses worth between £1m and £2m and an estimated £3,600 for those above £2m. Ministers expect the change to hit about 15,000 properties, 1% of the country’s housing stock.
To sort homes into the new bands, Scottish Assessors would carry out a “targeted revaluation” of every property thought to be worth more than £1m, whatever its present band. The government has set aside £5m for that work. The bands would take effect on 1 April 2028, and only if the Scottish Parliament agrees; primary legislation has to pass first. The rates in the consultation paper are illustrative.
Registers of Scotland data shows 391 properties sold for more than £1m in 2024-25, and more than half of them were in Edinburgh.
The politics
The tax first appeared in the Scottish Budget 2026-27 and in the SNP’s 2026 manifesto. Deputy First Minister Jenny Gilruth said: “Our approach to tax is based on fairness – asking the wealthiest among us to contribute a bit more.” She added that some multi-million pound properties carry council tax bills “not materially different” from those on far more modest homes.
Green MSP Lorna Slater called the consultation an “important milestone” and said the money would go to schools, libraries and other local services. Scottish Conservative finance spokesperson Craig Hoy took the opposite view. He argued the levy could put people off buying in Scotland, and that revenues from so few properties “won’t touch the sides” before administration costs are counted.
The consultation is separate from the wider debate on reforming council tax, which still rests on 1991 valuations. There is cross-party agreement that the system is outdated, but no consensus on how to fix it.
Sources
- 'Mansion tax' to double rates on Scotland's most expensive homes
- Council Tax High-Value Property Bands (Mansion Tax): consultation – gov.scot
