The bands
| Property value | Yearly surcharge |
|---|---|
| £2m – £2.5m | £2,500 |
| £2.5m – £3.5m | £3,500 |
| £3.5m – £5m | £5,000 |
| £5m+ | £7,500 |
Why it matters to landlords
The surcharge falls on owners rather than occupiers, so landlords of high-value homes, including large HMOs on one council tax bill, will pay it on top of normal council tax. Whether it's deductible from rental income will depend on the final rules. Watch for the detailed guidance.
How values will be set
Values are based on 2026 market value, with revaluations planned every five years. Homes close to a band edge, especially just over £2 million, may see owners challenge valuations, and buyers are likely to factor the charge into offers. The Budget of 28 October 2026 confirmed deferral options, discounts and exemptions, which are set out in the Budget documents.
What landlords can do now
- Check whether any property you own is likely to be valued near or above £2 million.
- Factor up to £7,500 a year into your yield calculations from 2028.
- Review tenancy agreements. Under the Renters' Rights Act, rent can only be raised once a year through the formal process.
- Watch for HMRC guidance on whether the surcharge counts as an allowable expense.
Frequently asked questions
Does the mansion tax apply in Scotland, Wales or Northern Ireland?
No. The High Value Council Tax Surcharge applies to residential property in England only.
Can I pass the surcharge on to my tenant?
The charge falls on the owner. Any rent increase must follow the annual rent increase rules, and tenants can challenge increases above market rent.
Sources
Sources last checked 9 November 2026. See all our sources and how we keep pages up to date.