Scotland Council Tax Premium on Second Homes: 100%, 200% and Beyond
When your council tax bill arrives showing double or triple the normal rate, the number is not a mistake. Scotland's second home council tax premium is real, escalating, and — since April 2026 — uncapped.
How the Premium Escalated
The premium came in three legislative steps:
Before April 2024, councils could reduce the 10% second home discount to zero, but they could not charge more than the standard rate. Depending on local policy, a second home could receive a discount or be charged the same rate as an occupied property.
From 1 April 2024, the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023 gave councils the power to add a 100% premium — doubling the council tax element. Councils adopted local premium policies at different rates.
From 1 April 2026, the Housing (Scotland) Act 2025 and the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 (SSI 2026/169) removed the 100% ceiling. The national default remains 100%, but councils now have explicit discretion to go higher. Several already have.
What the Percentages Actually Mean
A "100% premium" does not mean you pay 100% of the normal bill. It means 100% is added to the council tax element. So you pay the standard council tax, plus an additional amount equal to the full standard council tax — 200% of the council tax component in total.
Water and sewerage charges are never affected. They stay at the standard rate regardless of the premium.
Here is how the maths works for a Band D property:
| Premium Rate | Council Tax Multiplier | Example Band D (£1,488 base) | Plus Water/Sewerage (£652) | Total Bill |
|---|---|---|---|---|
| 0% (standard) | 1.0× | £1,488 | £652 | £2,140 |
| 100% | 2.0× | £2,976 | £652 | £3,628 |
| 200% | 3.0× | £4,464 | £652 | £5,116 |
| 300% | 4.0× | £5,952 | £652 | £6,604 |
| 500% | 6.0× | £8,928 | £652 | £9,580 |
These figures use Shetland's 2026/27 Band D rate as the base. Your council's Band D rate will differ, but the multiplier logic is the same everywhere.
Which Councils Charge What
Not all councils have moved to the same rate. Current examples from 2026/27:
- Midlothian: graduated premiums reaching 500% for properties held as second homes or empty beyond 37 months — the highest in Scotland
- Highland Council: 200% premium (total bill at 300% of base council tax)
- Glasgow City Council: 200% premium
- City of Edinburgh: 100% currently, with a 300% premium enacted for 1 January 2027
- Argyll and Bute, Orkney, Shetland, East Ayrshire: 100% premium
These figures shift as more councils adopt higher rates under the uncapped framework. Your council's policy page or annual demand notice shows the current local rate.
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Can You Avoid the Premium?
The premium is not universal. Statutory exceptions exist for:
- Job-related dwellings (mandatory 50% discount, no premium)
- Properties actively marketed for sale or let (up to 2 years protection)
- Newly purchased properties undergoing renovation (6-month grace, extendable)
- Seasonal occupation restrictions in the title or planning permission
If none of these apply, the premium stands. Challenging it requires the Section 81 grievance process and, if that fails, an appeal to the First-tier Tribunal for Scotland (Local Taxation Chamber).
The Scotland Second and Empty Homes Council Tax guide includes worked premium calculations for every band, the full list of exception categories with evidence requirements, and the appeal timeline.
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