Scottish Government
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Revaluation and reform of council tax in Scotland: design considerations and potential impacts
This report considers the design and impact of potential reforms to Scotland’s council tax system.
Introduction
This report considers the design and potential impact of reforms to Scotland’s system of council tax, a tax levied on the occupiers of residential property to help fund the provision of local services. Overall, the council tax system in Scotland operates as follows: the Scottish Government determines the structure of the tax, while councils set the overall tax rate in each of their areas, and collect and retain the revenues to help fund the services they provide (Scottish Government, 2025a). Across Scotland as a whole, it is budgeted to have raised £3 billion in 2024–25, roughly equal to the amount raised by non-domestic rates, and approximately 19% of councils’ general funding for day-to-day (resource) spending (Scottish Government, 2024b).
The amount of tax due on a property depends on (Scottish Assessors, 2025; Scottish Government, 2025a):
- the tax band a property is placed in (from A to H), which in turn depends on its assessed value as of April 1991, the assessment being conducted by valuation joint boards;
- the tax rate set by the council covering the area it is located in; and
- whether the occupier is entitled to an exemption, discount or the means-tested council tax reduction scheme (CTRS), or must pay a premium over the standard rate as a result of rules set by the Scottish Government or local council.
Table 1.1 shows each band’s 1991 property value thresholds, share of properties across Scotland as a whole, and associated tax bill based on the average tax level set by Scottish councils.
The bill for a property in Band A is 67% of the bill for a Band D property, while the charge for a property in Band H is 245% of the bill for a Band D property. A majority of properties (58%) are in the bottom three bands, A to C, while only a relatively small fraction (14%) are in the top three bands, F to H.
Table 1.1. Scottish council tax bands and bills, 2025-26
| Band | 1991 value range | Share of properties | Tax rate relative to Band D | Standard gross tax bill, Scotland average |
|---|---|---|---|---|
| A | Up to £27,000 | 19.1% | 0.667 | £1,029 |
| B | £27,001 to £35,000 | 22.3% | 0.778 | £1,200 |
| C | £35,001 to £45,000 | 16.3% | 0.889 | £1,372 |
| D | £45,001 to £58,000 | 14.0% | 1 | £1,543 |
| E | £58,001 to £80,000 | 13.9% | 1.314 | £2,027 |
| F | £80,001 to £106,000 | 8.4% | 1.625 | £2,507 |
| G | £106,001 to £212,000 | 5.4% | 1.958 | £3,022 |
| H | Above £212,000 | 0.6% | 2.450 | £3,780 |
Source: Share of dwellings in each band and average bills calculated using data from Scottish Government council tax datasetsthe Scottish Government Council Tax Datasets. Note that Band D tax rates – and hence tax rates for all other bands – vary across councils. In 2025–26, for example, Band D rates ranged from £1,379 in South Lanarkshire to £1,666 in Midlothian. Share of properties by band is based on data originally compiled in 2024–25.
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Original article link: https://www.gov.scot/publications/revaluation-reform-council-tax-scotland-design-considerations-potential-impacts/pages/4/
