THE PROPERTY FILTER TAKE
City of Edinburgh Council votes today on lifting its second home council tax premium from 100% to 300%.
The numbers are pointing to a doubling of the current bill: a band A second home billed £4,336 a year and a band H £15,935, from January 2027 if approved.
Consider re-running your Edinburgh holding costs at four times the standard council tax charge, and speak to your accountant about the January 2027 date.
City of Edinburgh Council votes today, 27 August, on raising its second home council tax premium (an extra charge on top of the standard bill) from 100% to 300%. The data shows what that costs. A band A second home would be billed £4,336 a year, a band H £15,935 (Scottish Daily Express, 21 August 2026). Bands are the valuation groups that set every council tax bill. The proposed start date is January 2027.
What would a 300% premium cost Edinburgh second home owners?
A 300% premium means 300% on top of the standard rate, so the total bill lands at four times the standard charge. The current 100% premium is double the standard charge, so approval would double what Edinburgh second home owners pay now. Our free property resources are a starting point for the hold-or-sell maths.
The council's published position is that the premium has been 100% since 1 April 2024. A rise to 300%, scheduled for 1 April 2026, was suspended. A second home is defined as furnished, occupied at least 25 days in a 12-month period, and not the owner's main residence. Our free stamp duty calculator covers LBTT (Land and Buildings Transaction Tax, Scotland's version of stamp duty) and the second home surcharge.
Why is the council revisiting the premium now?
The underlying picture is budgetary. Edinburgh has over 1,400 second homes and 1,700 empty properties against 6,300 homeless households. The council projects roughly £4 million a year in extra revenue (Scottish Daily Express, 21 August 2026). Midlothian View reported on 21 August 2026 that abandoning the premium earlier this year left a £3 million budget shortfall. Running costs and returns can be modelled in our free calculators.
The Scottish Parliamentary Corporate Body has asked for MSPs (Members of the Scottish Parliament) to be exempted. That would cost the council roughly £100,000 a year, about 2.5% of the projected £4 million. Its spokesperson said: "Living in two different locations is a necessity of the job for around one third of MSPs."
Consultation respondents were blunter, calling the proposal "punitive" and "cynical". Some said they would struggle to afford essentials or would need to draw down savings. The council's finance and resources committee is convened by Labour's Mandy Watt. Investors comparing Scottish and English holdings can weigh the approaches in our property investment strategies hub.
This article draws on the council's own published position and two named news reports, the original wire report being unreachable at the time of writing.
Key takeaways
Edinburgh's second home council tax premium is 100% today and could rise to 300%, taking the total bill to four times the standard charge.
Under the proposal, a band A second home is billed £4,336 a year and a band H £15,935.
The council projects roughly £4 million a year in extra revenue, with implementation proposed for January 2027.
An exemption for MSPs would cost the council around £100,000 a year, about 2.5% of that projected £4 million.
The change applies only in the City of Edinburgh Council area, under Scottish rules.
Frequently asked questions
What is Edinburgh's second home council tax premium at present?
When would the 300% premium start?
Which properties count as a second home in Edinburgh?
Does this apply outside Scotland?
What can an affected owner do?
