Council Tax on Second Homes 2026/27
The second homes premium, explained
Since April 2025, English councils have had the power to charge up to a 100% premium on furnished properties that aren’t anyone’s sole or main residence — effectively doubling the standard council tax bill. This isn’t automatic nationwide; each council decides individually whether to apply it, and by 2026 well over 200 councils across England had opted in.
What counts as a second home
- A property is generally classed as a second home if it’s furnished and no one lives there as their main residence, even if it’s occupied occasionally
- Holiday lets genuinely operated as a commercial letting business, meeting minimum letting-day thresholds, may instead fall under business rates rather than council tax — the distinction matters significantly for your total bill
- Job-related second homes (required for work, such as tied accommodation) may qualify for an exemption from the premium — check directly with your council rather than assuming
- Wales operates its own, separately set premium regime, which in some council areas can reach considerably higher than England’s 100% cap
Working out the real cost
Before buying or keeping a second property, it’s worth checking whether your specific local authority has adopted the premium and at what rate, since this varies significantly by council and can materially change the ongoing cost of ownership.
What a second home costs, band by band
The premium is added to the standard charge, so a 100% premium doubles the bill. The table uses the 2026/27 England average Band D charge of £2,392; your council's figure will differ, and the premium only applies if your council has adopted it.
| Band | Standard charge | With 100% premium | Extra cost a year |
|---|---|---|---|
| Band A | £1,595 | £3,190 | £1,595 |
| Band B | £1,860 | £3,720 | £1,860 |
| Band C | £2,126 | £4,252 | £2,126 |
| Band D | £2,392 | £4,784 | £2,392 |
| Band E | £2,924 | £5,848 | £2,924 |
| Band F | £3,455 | £6,910 | £3,455 |
| Band G | £3,987 | £7,974 | £3,987 |
| Band H | £4,784 | £9,568 | £4,784 |
A Band D second home at the average therefore costs £4,784 a year in council tax before any other running costs, and a Band H property costs £9,568 (£4,784 plus the same again). Over a decade, the premium alone on a Band D home adds roughly £23,920 to the cost of ownership.
Exceptions to the premium in England
A home that is furnished and no one's main residence is normally treated as a second home, but several exceptions apply. These include homes that are the job-related accommodation of someone required to live there for work, annexes used as part of the main home, properties being actively marketed for sale or let (for a limited period, typically up to 12 months), homes in probate for a limited period after the owner's death, and certain pitches and moorings. Councils must be given notice before the premium takes effect, and you usually have to apply to your council for an exception rather than expecting it to be applied automatically.
Holiday lets and business rates
Self-catering holiday accommodation in England can be assessed for business rates instead of council tax if it is available to let for at least 140 days a year and actually let for at least 70 days. Small business rate relief can then reduce or remove the bill, which can be far cheaper than paying council tax with a premium. If you fall short of the letting thresholds, the property returns to council tax and may attract the premium, so keep records of availability and bookings in case the Valuation Office Agency or your council asks for evidence.
Scotland and Wales
Scottish councils can charge a premium of up to 100% on second homes, and Welsh councils can charge up to 300%, so the cost of owning a second home in Wales can reach four times the standard charge in councils that apply the maximum. Both nations also set their own rules for holiday lets, so check the position in the council area where the property is located. The charge depends on the property's location, not on where you live.
Empty homes are charged differently
A home that is unfurnished and unoccupied is classed as empty rather than a second home, and in England the long-term empty premium builds up: 100% after one year, 200% after five years and 300% after ten years. If you are renovating or between tenants, the rules on empty homes may apply instead of the second home premium, and councils sometimes offer short discounts or exemptions for properties undergoing major work. Ask your council which category your property falls into before you assume it is a second home.
Practical steps if you own a second home
Check whether your council has adopted the premium and from what date, since councils must give a year's notice. Confirm the band of the property using our council tax band checker, because a wrong band doubles the effect of the premium. Ask about any exception that might apply, and keep records of letting activity if you operate a holiday let. Finally, remember that second homes also carry Capital Gains Tax when sold and higher Stamp Duty rates when bought, so council tax is one of several costs to weigh up.
Sources: GOV.UK guidance on the second homes premium and GOV.UK: Council Tax. Rules change, so confirm the position with your local council.