Owners of weekend getaways and vacation cottages are only now starting to fully comprehend the subtle unease that is currently permeating Scotland’s real estate market. The regulations pertaining to Scotland’s second home council tax have changed in ways that, at least to an outsider, seem more like a purposeful reckoning than gentle policy nudges.
Councils were only allowed to charge double the regular council tax rate on second homes until April 2026. There is no longer a ceiling. These days, individual councils are free to set any premium they deem suitable, and many have done so swiftly. 225% was chosen by the Scottish Borders. Highland Council immediately demanded a premium of 300%. This implies that a person in Invernessshire who owns a modest second property may have a council tax bill that is four times higher than that of a permanent resident. It was always going to land hard, and it’s a stark number.
| Key Information: Scotland Second Home Council Tax | Details |
|---|---|
| Topic | Council Tax on Second Homes in Scotland |
| Governing Authority | Scottish Local Councils (individually set premiums) |
| Standard Premium (Pre-April 2026) | Up to 100% above standard rate (200% total) |
| New Rule from April 2026 | No upper cap on premiums — councils set their own rates |
| Scottish Borders Rate (2026) | 225% of standard Council Tax |
| Highland Council Rate (2026) | 300% premium applied |
| Edinburgh Current Rate | 100% premium (300% increase suspended) |
| Definition of Second Home | Furnished, used 25+ days/year, not primary residence |
| Additional Property Tax (LBTT) | 8% Additional Dwelling Supplement on purchase |
| Exemptions Available | Employer-provided homes, annexes, recently inherited properties |
Curtains are drawn, driveways are empty, and letterboxes are filled with unopened circulars. In recent years, a certain kind of emptiness has descended upon some of the quieter Highland villages. The second homes are these. Local communities have been outspoken about the strain this puts on the availability of housing, especially for young people who want to remain in their hometowns. To some extent, the tax changes are a direct reaction to that annoyance.
The circumstances in Edinburgh have been especially illuminating. The council had intended to increase its premium to 300% starting in April 2026, but it halted the plan shortly before it went into effect. The stated justification was that the policy needed more evaluation before it could be fully implemented and that more interaction with impacted owners was required. There might have been more political tension behind the scenes than the official statement revealed. In any case, Edinburgh’s second-home owners received updated bills at the current 100% premium, which is the same as it was last year, at least temporarily.
It’s difficult to ignore the fact that the suspension felt more like a blink than a reversal. The higher premium was justified by the council’s declaration of a housing emergency in 2023. Putting the increase on hold does not imply giving up on it. The phrases “further work,” “engagement,” and “timing considerations” imply that this is postponed rather than abandoned. Edinburgh’s second home owners seem to have received a short-term reprieve rather than a true change in policy.
In Scotland as a whole, local variation is becoming more pronounced. The cost of owning a second home is highly dependent on postcode because councils now set their own rates without a national cap. Since 2024, Aberdeenshire has imposed a 200% fee. The Scottish Borders received a score of 225%. The Highlands went the furthest. Bills for similar properties could differ significantly for an owner who owns two properties in different council areas.
All of this adds up to a property landscape that is actually more difficult to navigate than it was even two years ago. The council tax premiums are increasing, the Additional Dwelling Supplement for purchases is currently set at 8%, and Holyrood’s policy direction is obviously aimed at making second home ownership uncomfortable rather than incidental. It’s still unclear and genuinely intriguing whether this will significantly increase the supply of housing or just lead some owners to reclassify their properties as short-term rentals, a different category with its own set of regulations.
The response will probably differ depending on where you live and how committed each council is to upholding the spirit of these regulations rather than just the letter.
