If you own a second home in Scotland, the council tax bill landing on your doormat this spring could look very different from last year's. From 1 April 2026, a major change in Scottish law removed the cap on how much councils can charge on top of standard council tax for second homes — and some councils have moved quickly and dramatically. Others have barely moved at all. The result is a patchwork of charges that varies enormously depending on where your property sits.
The background: how we got here
Scotland has a long-standing housing pressure problem, particularly in popular tourist and rural areas where second homes reduce the stock available for permanent residents. In response, the Scottish Government gave councils new powers from April 2024 to charge a premium — initially capped at 100% above the standard rate — on second homes.
In 2024/25, 29 of Scotland's 32 councils applied the 100% premium. The three who initially opted out — Falkirk, Glasgow City, and North Ayrshire — all fell into line by 2025/26, meaning all 32 councils were charging at least double the standard rate by April 2025.
Then, from 1 April 2026, the rules changed again. Amendments to the Housing (Scotland) Bill removed the 100% cap entirely, giving councils unlimited discretion to set whatever premium they consider appropriate for local conditions. The results have been dramatic — and, in at least one case, chaotic.
A quick note on the terminology
The language around these charges can be confusing. When a council announces a "100% premium," it means second home owners pay 100% extra on top of their standard bill — so they pay double. A "300% premium" means paying 300% extra, so the total bill is four times the standard rate. A "500% premium" means paying six times the standard rate. The table below uses total multipliers to make this clearer.
Council-by-council: who is charging what from April 2026
The picture varies enormously across Scotland's 32 councils. Here is what is known for the councils that have made significant decisions:
| Council | Premium (extra %) | You pay (× standard rate) | Notes |
|---|---|---|---|
| Highland | 300% | 4× | Rising to 350% (4.5×) in 2027/28 and 400% (5×) in 2028/29 |
| Midlothian | 100%–500% (graduated) | 2× to 6× | Rises with length of ownership: 100% under 2 yrs, 300% at 2–3 yrs, 500% over 3 yrs |
| Glasgow City | 200% | 3× | Reversed its previous opt-out |
| Scottish Borders | 225% | 3.25× | — |
| Edinburgh | 100% (currently) | 2× | Planned 300% from April 2026 but suspended after 8 days — see below |
| Argyll & Bute | 110% | 2.1× | Modest increase despite having the highest rate of second homes in Scotland |
| Fife | 100% | 2× | Retaining the previous level for now |
For councils not listed here, the position as at April 2026 is not confirmed in publicly available sources — you should contact your council directly or check your council tax bill.
Edinburgh: a policy in disarray
The most dramatic story of the 2026 changes belongs to Edinburgh. The City of Edinburgh Council voted to increase its second home premium from 100% to 300% — making the total bill four times the standard rate — effective from 1 April 2026. Bills at the new rate went out to affected owners.
Then, just eight days later, the council suspended the policy entirely. One homeowner with a Band H property had already received a bill for £17,240 under the new rate and was notified by email that it was being reversed. The council reverted to the 100% premium (the same rate as 2025/26) and announced a six-month pause to "engage on the impact of the rise and consider any amendments or exemptions."
The reversal followed legal warnings and significant backlash from second home owners. It is a clear illustration of how rapidly this policy landscape is shifting — and why owners need to stay alert to their own council's position.
Midlothian's unusual graduated approach
Midlothian has taken a different approach from most councils, introducing a graduated premium that increases the longer a property has been classified as a second home. Under its system from April 2026, owners pay a 100% premium (double the standard rate) for the first two years, rising to a 300% premium (four times the standard rate) between two and three years, and a 500% premium (six times the standard rate) for properties held for more than three years.
For context, a Band G property in Midlothian under the maximum 500% premium faces a council tax bill of up to £27,863 per year. Even a Band D property — the standard benchmark — would face a bill approaching £15,000. Midlothian Council estimates the policy will affect around 193 properties and generate approximately £200,000 in additional revenue in its first year.
What counts as a second home?
For council tax purposes, a second home is generally a furnished property that is not your main (sole or principal) residence. This is distinct from a long-term empty home, which is typically unfurnished — empty homes have been subject to council tax premiums for longer and can face similar or higher charges.
Properties that are actively marketed for sale or rental, or those undergoing significant renovation work, may be eligible for exemptions or discounts — but the specifics vary by council. If you have recently purchased a property that was previously empty, some councils offer a grace period of up to six months before the premium kicks in.
This sits on top of an already significant purchase tax
It is worth noting that buying a second home in Scotland already attracts an 8% Additional Dwelling Supplement (ADS) on top of standard Land and Buildings Transaction Tax (LBTT) rates — a rate that was increased from 6% to 8% in December 2024. The council tax premium is an additional ongoing annual cost on top of that upfront tax hit.
What should second home owners do?
The most important step is to contact your own council or check your council tax bill directly — the rates are not uniform and are changing. If you believe a premium has been incorrectly applied, or you think you may qualify for an exemption, contact your council's council tax team in writing and keep records of correspondence.
Given the pace of change — Edinburgh reversed its decision within days — it is also worth monitoring local council announcements, particularly if you own in an area where the premium has recently been increased or where a decision is still pending.