How much extra council tax do second homes pay in 2026/27?

Full answer

Councils in England and Wales have been given powers to charge higher council tax on second homes, aimed at addressing housing pressure in areas with a high proportion of holiday and second homes, though implementation and rates vary by local authority. **What counts as a 'second home' for this premium** A second home for council tax premium purposes is generally a furnished property that is not anyone's sole or main residence -- for example, a holiday home used only occasionally by its owner, rather than let out commercially as a furnished holiday letting business (which may instead be classed for business rates rather than council tax, depending on how much it is actually let out during the year). **The premium itself** Councils that choose to apply the power can charge up to a 100% premium on the standard council tax bill for a qualifying second home, meaning the total bill for the property can be double the standard rate that would apply to an equivalent main residence in the same council tax band. **This is separate from the long-standing empty homes premium** This second-home premium is distinct from (though similar in mechanism to) the long-standing empty homes premium, which allows councils to charge extra council tax on properties that have been unoccupied and substantially unfurnished for an extended period, with the premium percentage generally increasing the longer a property remains empty (potentially reaching 100% or, for very long-term empty homes, considerably more). **Not every council applies the second-home premium** Whether the second-home premium applies to a particular property depends entirely on whether that specific local council has chosen to adopt the power and apply it in its area -- councils in areas without significant second-home pressures may choose not to apply it at all, while councils in popular holiday destinations (such as parts of Wales, Cornwall, and other coastal or rural tourist areas) are more likely to have adopted it, given the particular local housing pressures second homes can create in these areas. **Business rates as an alternative for genuine holiday lets** A property that is genuinely available for holiday letting for a sufficient number of days a year, and actually let for a minimum number of days, may instead be assessed for business rates rather than council tax, which follows entirely different rules (including potential Small Business Rates Relief that could reduce the bill to zero for lower-value properties) -- simply owning a second home is not enough on its own to qualify for this business rates route; specific letting activity thresholds must be met and demonstrated. **Worked example** An owner has a furnished coastal cottage they visit for a few weeks a year but do not let out commercially, in a council area that has adopted the second-home premium. Their standard council tax band D bill would otherwise be, say, £2,200 a year; with the 100% second-home premium applied, their actual bill becomes £4,400 a year for the same property. **Practical tip** If you own a second home, check directly with the specific local council where the property is located to confirm whether they apply a second-home premium and at what rate, since this varies significantly between councils and can substantially affect the ongoing cost of owning a second property.

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