Mansion tax charges

How much is the mansion tax?

By Simon Dredzen, active in the prime central London property market for over two decades · Reviewed 8 November 2026

From April 2028, homes in England worth £2m or more pay the High Value Council Tax Surcharge, known as the mansion tax, on top of council tax. The charge depends on which of four bands your home falls in, based on its value in April 2026.

The four bands

Value at April 2026	Yearly charge from 2028/29
Under £2m	Nothing
£2m to under £2.5m	£2,500
£2.5m to under £3.5m	£3,500
£3.5m to under £5m	£5,000
£5m or more	£7,500

These are the 2028/29 rates. They rise with inflation (CPI) each year from 2029/30. They are separate from your council tax band (A to H), which stays as it is.

Reaching a threshold means the whole higher charge

There is no marginal relief. A home valued at exactly £2m pays the full £2,500 a year, while one valued at £1,999,999 pays nothing. The same jump happens at £2.5m, £3.5m and £5m: a home valued exactly at a threshold falls in the higher band. That is why the value given to your home matters so much if it is close to a threshold.

What dropping one band saves

Bands stay fixed until the first revaluation, planned for 2033. Here is what a successful challenge that moves a home down one band would save:

If you are valued at	And prove it was worth	You save a year	Saving 2028/29 to 2032/33
£2m to under £2.5m	under £2m	£2,500	about £13,000
£2.5m to under £3.5m	under £2.5m	£1,000	about £5,200
£3.5m to under £5m	under £3.5m	£1,500	about £7,800
£5m or more	under £5m	£2,500	about £13,000

Illustrative: five charging years, with 2% yearly inflation from 2029/30, and that the bands and charges are confirmed as proposed.

Empty homes pay double

The Finance Bill adds a 100% premium for long-term empty homes, using the council tax definition: unoccupied and substantially unfurnished for at least a year. So a £2,500 charge becomes £5,000, and a £7,500 charge £15,000. The year can have started before April 2028, so a home left empty from spring 2027 could pay double from the first day. Any discount is applied first, and the Treasury can set exceptions in regulations.

The charge is worked out day by day

The yearly charge is split into a daily amount, and whoever is liable on each day pays for that day. If you buy or sell part-way through the year, each owner pays for their own days. Changes such as a home becoming empty, or a discount starting, count from the day they happen.

Do I keep paying if I challenge?

Yes. Bills are due while a challenge or appeal is under way, and are refunded or adjusted if you win. See how to challenge your mansion tax valuation.

Can I put off paying?

The government has confirmed it will let some owners defer payment: households with income of £35,000 or less, or savings of £16,000 or less (in line with pension-age Council Tax Support), or where someone in the household meets disability criteria and it is their main home. Payment is put off until the home changes hands, or earlier if you choose to settle. Interest will be charged, at a rate to be set in regulations. The scheme is aimed at households, so company-owned homes are not expected to qualify.

Work out your own figure

Our free checker estimates your home's April 2026 value from local sales, shows your likely band and yearly charge, and how close you are to a threshold.