The Scottish Government has launched a consultation on plans to introduce two new council tax bands for homes worth more than £1 million.
The proposals would create a new Band I for properties valued between £1 million and £2 million, and a Band J for homes worth more than £2 million, based on property values as of 1 April 2026.
Under the consultation, Band I properties would pay around £720 more than the current highest Band H rate, while Band J homes would face an increase of about £3,600. The Scottish Government said the changes would affect fewer than 1% of properties.
A targeted revaluation will be carried out for properties estimated to be worth more than £1 million, while all other homes will remain on the existing 1991 valuation basis.
Deputy First Minister and Finance Secretary Jenny Gilruth said: “Our approach to tax is based on fairness – asking the wealthiest among us to contribute a bit more. As it stands, some multi-million pound properties have council tax bills that are not materially different from those faced by people living in far more modest homes.
“Our progressive approach to taxation helps to target investment in economic growth, deliver public services and support cost of living measures not available elsewhere in the UK, such as free tuition, free prescriptions and our plans for a £2 bus fare cap across Scotland.
“Additional revenue raised through these new council tax bands will be retained in full by local government to support the local services communities rely on – unlike the UK Government’s proposals for a similar scheme that are set to be returned to the Treasury.
“In launching this public consultation, we are keen to hear the views of people and communities right across Scotland.”
The consultation will run until 24 August, after which ministers will decide on the final rates before laying proposals before the Scottish Parliament.