What would the £2 million council tax surcharge cost?
The four bands, who pays, and the dates, from the government's factsheet updated 28 October 2026.
Owners of £2 million-plus homes in England would pay £2,500 to £7,500 a year from April 2028. Own one? open for offer lets you test the market before you list. Figures come from the government's factsheet, updated 28 October 2026.
Last reviewed 3 November 2026. Status: Announced in Budget 2025, 26 November 2025; confirmed with the consultation response at Budget 2026, 28 October 2026; not yet law (Finance Bill 2026-27).
Why is the government adding a surcharge?
Council tax dates from 1993. It sorts homes into eight bands using values from 1991. In 2025-26 it raised £43.9 billion across England, the factsheet says.
The factsheet gives its own comparison. A band D home in Darlington or Blackpool, worth around £400,000 today, pays £2,400 to £2,600 a year.
A band H home in Mayfair valued at £10m pays around £2,100. The surcharge is aimed at that gap.
What are the surcharge bands?
The High Value Council Tax Surcharge is a new yearly charge on residential property in England worth £2 million or more in 2026. It would sit on top of the council tax already paid.
| Value band in the factsheet | Annual charge |
|---|---|
| £2.0m to £2.5m | £2,500 |
| £2.5m to £3.5m | £3,500 |
| £3.5m to £5.0m | £5,000 |
| £5m and above | £7,500 |
The factsheet prints the bands as ranges that share their end points. It does not say which band a home valued exactly on a boundary falls into, so we have not guessed.
Charges would rise with CPI inflation each year from 2029-30. The government says decisions on moving the bands themselves will be taken alongside revaluations.
Who pays it, and when?
The owner pays, not the occupier. For a let home worth £3 million, the surcharge would fall on the landlord, not the tenant.
| Step | Date given |
|---|---|
| Valuation date | April 2026 |
| Owners can see draft bands | Autumn 2027 |
| First bills issued | March 2028 |
| Surcharge takes effect | April 2028 |
| Next revaluation | 2033 |
The government expects fewer than 1 in 100 properties in England to be above the £2 million line. It estimates the surcharge would raise around £400 million a year from 2028/29.
How would a home's band be decided?
The Valuation Office would run a targeted exercise to find homes above £2 million. It would look at sales of comparable properties around April 2026, plus property type, age, number of rooms and area.
A model would give an initial figure. A professional valuer would then place the home in a band. A small number of homes may need a visit, arranged in advance.
An owner who disagrees can challenge the banding. If the challenge fails, the next step is an appeal to the Valuation Tribunal for England.
Can an owner defer or avoid paying?
A deferral scheme would delay payment until the home changes hands. Interest would be charged at what the factsheet calls "a fair rate of interest". To qualify, a household needs one of three things.
- Annual household income of £35,000 or less.
- Capital savings of £16,000 or less.
- A household member who meets disability criteria.
Care homes, registered social housing and working farmhouses are among the exemptions. A home left substantially unfurnished and empty for 12 months or more would pay a 100% premium.
Tax depends on your circumstances. The government's factsheet is linked below; an accountant or tax adviser can apply it to you.
What is not settled yet?
Several details are still to come. The full list of exemptions and discounts sits in the government's consultation response, not the factsheet.
The government says it will publish more on how bands are decided, and on the evidence owners can use to challenge one. It has not said whether bands will be uprated before 2033.
The measure also needs Parliament. Until Finance Bill 2026-27 passes, every figure here is a plan, and we will update this page when the law is made.
What does it mean if you might sell?
The band is fixed from a 2026 valuation, not from your eventual sale price. Owners near the line will want a clear view of value before the draft bands appear in autumn 2027.
open for offer is the pre-market, the market that exists before a property is ever advertised. A market estimate is a starting point for that view. It is not the Valuation Office's figure and would not decide your band.
If you are weighing a sale, our guide to selling your home sets out the steps before you list.
Sources and corrections
Sources, checked 3 November 2026: High Value Council Tax Surcharge factsheet, GOV.UK, published 28 October 2026.
Also: the Budget 2026 document, published 28 October 2026, and the government's consultation response.
Contains public sector information licensed under the Open Government Licence v3.0.
Corrections: none so far. If we find an error, we will correct it here, with the date and the figure we changed.
Related: Selling a buy-to-let? The tax is 18% or 24%, and the clock is 60 days
Common questions
Does the surcharge replace council tax?
No. Owners would pay it on top of their existing council tax, according to the government's factsheet of 28 October 2026.
Who pays the surcharge on a let home?
The owner. The factsheet says homeowners, rather than occupiers, would be liable.
When would owners see their band?
The factsheet says draft bands would be visible in autumn 2027, with first bills in March 2028.