How big are Scottish council tax rises for 2026/27?

Scottish councils have approved increases between 5.6% and 10% for 2026/27. The exact percentage varies by authority and property band, but most moves sit above January’s 3% inflation. Households should check their council notice for final figures, payment dates, and any available discounts or exemptions.

Why are councils raising council tax above inflation?

Costs for wages, social care, school transport, and energy-linked contracts have risen faster than grants and fees. Local authority budgets face backlogs and reserve limits, so councils are using council tax to help balance 2026/27 plans while trimming non-statutory services. The result is higher bills despite easing headline inflation.

What does this mean for household finances in Scotland?

Higher council tax reduces disposable income, so families may cut back on dining out, leisure, and non-essential travel. Some households could rely more on credit, raising repayment risk. Check eligibility for council tax reduction, single-person discount, or payment plans to smooth cash flow across the year.

How does Edinburgh’s 5% visitor levy interact with council tax?

The visitor levy is separate from council tax. From July 2026, eligible overnight stays in Edinburgh will attract a 5% charge, typically added to accommodation bills. Residents still pay council tax as usual. Investors should watch hotel pricing, occupancy, and event calendars to assess combined effects on demand.

Law and Government

UK Council Tax on February 28: Scottish Hikes Outpace Inflation

ByHuzaifa Zahoor February 28, 2026February 28, 2026

Council tax is in focus on 28 February as multiple Scottish councils approve above-inflation rises for 2026/27. Announced uplifts of 5.6% to 10% exceed January’s 3% inflation, reflecting widening gaps in local authority budgets. For households, higher bills tighten household finances Scotland. For investors, pricier local services can slow discretionary spend and point to sticky cost pressures across care, waste, transport, and education contracts. With Edinburgh preparing a 5% visitor levy in July 2026, travel spending may also adjust. We outline what the latest decisions mean, where pressures could land, and what data to watch next.