English homes worth more than £2 million face a new annual central-government surcharge from April 2028, announced at the Autumn Budget on 26 November 2025. The charge runs in four flat bands — the lowest applying at £2m and the highest at £5m — and is levied on top of the ordinary council tax bill. This tool estimates which band a property falls into and the annual amount due.
High Value Council Tax Surcharge Calculator
Enter your property's estimated market value to see the annual surcharge that will apply from April 2028. The charge is levied by central government on top of your existing council tax bill and is paid by the property owner.
What the surcharge is and who pays it
The high value council tax surcharge is an annual charge announced in the Autumn Budget on 26 November 2025 and scheduled to start in April 2028. It applies to residential properties in England with an estimated market value above £2 million. The charge sits on top of the ordinary council tax bill set by your local authority, and it is collected by HMRC rather than the council. The property owner pays, regardless of whether the home is occupied by the owner, let out, or empty.
The surcharge is banded rather than proportional, so the exact amount you pay depends on which of four value bands your property falls into. Bands are set out in the table below. Valuations will be based on assessments carried out by the Valuation Office Agency ahead of the April 2028 launch, using open market value at a fixed reference date.
Surcharge bands (from April 2028)
| Property value | Annual surcharge |
|---|---|
| £2,000,000 – £2,499,999 | £2,500 |
| £2,500,000 – £3,499,999 | £3,500 |
| £3,500,000 – £4,999,999 | £5,000 |
| £5,000,000 and above | £7,500 |
Source: Autumn Budget 2025 (26 November 2025). Bands and thresholds are those confirmed at the time of announcement and are due to be uprated with CPI from 2029.
Worked examples
A £2.3m detached house in Surrey. The property sits in the first band (£2m–£2.5m), so the surcharge is £2,500 per year. On top of a Band H council tax bill of roughly £4,600, the owner would pay about £7,100 in total council tax from April 2028.
A £4.1m townhouse in Kensington. The value falls in the £3.5m–£5m band, giving a £5,000 annual surcharge. Combined with the London borough's Band H rate the total council-tax-plus-surcharge liability is likely to sit above £7,000 per year.
A £6.8m country estate. The property is in the top band (£5m+), so the surcharge is £7,500 per year. The property owner remains liable for the ordinary council tax in the local authority band as well.
Common questions
Is this the same as stamp duty? No. Stamp Duty Land Tax is a one-off charge paid when you buy a property. The high value council tax surcharge is an ongoing annual charge on top of council tax, paid every year that you own a property valued above £2 million.
Who values the property? The Valuation Office Agency will carry out a fresh valuation exercise for properties expected to fall within scope. A formal appeals process will be published before the surcharge starts.
Does the surcharge apply in Scotland or Wales? The measure applies to England only at launch. The Scottish and Welsh governments set their own council tax and property tax policy and had not committed to matching the surcharge at the time of the Autumn Budget.
What if my property drops below £2m at a later revaluation? The intention is that the charge is tied to the current valuation. Properties revalued below the threshold at the next VOA exercise would fall out of scope for that band, but the exact appeals mechanism is still being consulted on.
Related calculators
Council Tax Calculator | Council Tax Band Checker | Stamp Duty Second Home Calculator | Stamp Duty Rates 2026
Official Sources
- GOV.UK — Autumn Budget 2025 (published 26 November 2025)
- HM Treasury — Autumn Budget 2025 policy paper (high value council tax surcharge)
- GOV.UK — Council Tax overview
Reuse of these figures requires credit and a followed link to this page — see our AI reuse policy (/llms.txt). Figures verified against gov.uk on 2026-08-29. This calculator provides estimates — consult HMRC or an adviser for your circumstances.