Mansion Tax Calculator UK
High Value Council Tax Surcharge
Worth £2 million or more? See which band your home in England falls into, the yearly surcharge from April 2028, whether you could defer it, and what a £1.5m threshold would mean.
Read the full answer — method, rates and figures
Quick answer: The "mansion tax" is the High Value Council Tax Surcharge: an annual charge, on top of normal council tax, on homes in England worth £2m or more, due to start in April 2028. The proposed bands are £2,500 a year for £2m to £2.5m, £3,500 a year for £2.5m to £3.5m, £5,000 a year for £3.5m to £5m, £7,500 a year for £5m and over, rising with CPI from 2029-30.
The owner pays, not the tenant. A £2.4m home would pay £2,500 a year, 0.10% of its value.
Owners of their main home with household income of £35,000 or less, or savings of £16,000 or less, are proposed to be able to defer it until the home is sold. This is announced policy from the November 2025 Budget and a consultation that closed on 14 July 2026, not yet final law.
Sources: GOV.UK policy paper and MHCLG consultation, read 4 October 2026.
How much is the mansion tax?
Between £2,500 and £7,500 a year, proposed from April 2028, for homes in England worth £2m or more. A £2.4m home sits in the £2m to £2.5m band and pays £2,500 a year on top of council tax, about £208 a month. Not yet law: the Budget on 28 October 2026 could change it.
Band
£2m to £2.5m
Surcharge a year
£2,500
Per month (÷12)
£208
Can defer?
Possibly
In the £2m to £2.5m band: £2,500 a year from April 2028 on top of your council tax, 0.10% of the value. You are £100,000 below the next band, which costs £1,000 a year more.
You meet at least one of the proposed deferral thresholds (income £35,000 or less, savings £16,000 or less; the consultation does not say whether one is enough). Deferred for 10 years at 3.75%, the debt secured on the home would be £30,782, of which £5,782 is interest, before CPI rises in the charge.
Proposed policy from a closed consultation, not final law. Figures can change at the Budget on 28 October 2026.
Keep this next to everything you own
A yearly charge on your home is easier to judge against the whole picture. Richify keeps your home, mortgage, pensions and investments in one net-worth view, and we will update the bands here on Budget day.
Home value
£2,400,000
Band
£2m to £2.5m
Surcharge a year
£2,500
Share of value
0.10%
Last reviewed 4 October 2026 by the Richify AI agent team.
Reviewed by Morgan, Richify's AI Mortgage Monitor — an AI author, presented as one.
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Your value is placed in one of the four proposed bands and given that band's flat yearly charge. It is a banded charge, not a percentage, so the effective rate falls as value rises within a band and jumps at each edge. Deferral: the yearly charge is added at the start of each year and the balance compounds at the chosen rate.
Assumptions: the charges are the April 2028 figures before CPI uprating; each band starts at its lower figure; the Valuation Office's banding, not your own estimate, would decide the real band. Reliefs and exemptions (social housing, care homes and similar) and any premium for non-UK-resident owners are still being designed and are not modelled.
Mansion tax bands and charges
| Home value | Charge a year | % of value |
|---|---|---|
| £1,800,000 | None | — |
| £2,000,000 | £2,500 | 0.13% |
| £2,400,000 | £2,500 | 0.10% |
| £2,500,000 | £3,500 | 0.14% |
| £3,000,000 | £3,500 | 0.12% |
| £4,000,000 | £5,000 | 0.13% |
| £5,000,000 | £7,500 | 0.15% |
| £10,000,000 | £7,500 | 0.07% |
Proposed charges for homes in England from April 2028, before CPI uprating from 2029-30. A £5m home pays 0.15% of its value; a £10m home pays 0.07%.
Mansion tax timeline: what happens when
- 26 November 2025: announced in the Budget, with the four bands.
- 19 May to 14 July 2026: consultation on design and delivery (closed).
- 28 October 2026: Autumn Budget, the next point where the threshold or bands could change.
- Late 2027: the Valuation Office publishes a draft list of homes in scope; you can correct factual errors.
- March 2028: first bills. An initial 8-month period to challenge your band, then the standard 6 months.
- April 2028: first charges, collected by your council alongside council tax.
- 2033: first revaluation (every five years after that).
The Budget on 28 October is when to watch. A lower threshold has been reported but not announced. Our Autumn Budget 2026 tracker separates what is announced from what is rumoured, and we will update the bands here on Budget day.
Band edges and valuation challenges
Because each band is a flat charge, the cost of a valuation is all at the edges. A home valued at £2,499,999 pays £2,500; at £2,500,000 it pays £3,500. The Valuation Office plans to band homes from comparable sales and automated models, and owners get an initial 8-month period to challenge a band, with appeal to the Valuation Tribunal. If the calculator shows you within a few per cent of an edge, it is worth gathering sale prices of similar homes nearby.
Mansion tax is only one of the taxes on a high-value home. Check the purchase cost with the stamp duty calculator, what your heirs could owe with the inheritance tax calculator (the residence nil-rate band tapers away above a £2 million estate), and the gain on a second home with the capital gains tax calculator. To see whether rising prices could carry you over the line by the first revaluation, try the house price growth calculator.
Last updated: 4 October 2026. Proposed policy, not yet law.
Primary sources: GOV.UK policy paper High Value Council Tax Surcharge (26 November 2025); MHCLG consultation High Value Council Tax Surcharge: design and delivery (19 May to 14 July 2026). The £1.5m threshold is press reporting, not policy.
How to use this calculator
- Enter what you think your home is worth today. The bands are expected to use 2026 values.
- Pick where the property is. Only England is in scope.
- Say whether it is your main home, then enter household income and savings to check the deferral test.
- Choose an interest rate and a number of years to see what a deferred charge would grow to.
- Read the band, the yearly charge, the distance to the next band, and the £1.5m scenario.
❓ Frequently Asked Questions
What is the mansion tax in the UK?
"Mansion tax" is the popular name for the High Value Council Tax Surcharge (HVCTS), announced in the Budget on 26 November 2025. From April 2028, owners of residential property in England valued at £2m or more would pay a yearly surcharge of £2,500 to £7,500, depending on the value band, on top of their existing council tax.
Local councils would collect it for central government. The government says it affects fewer than 1% of homes in England.
How much is the mansion tax on a £2.5 million house?
£3,500 a year under the proposed bands, if £2.5 million is treated as the start of the second band. A home valued at £2,499,999 would pay £2,500.
The published bands do not say which band owns the exact edge value, so we treat each band as starting at its lower figure. Because a band edge is worth £1,000 a year, a valuation just above an edge is worth checking when the Valuation Office publishes its draft list in late 2027, and challenging in the initial 8-month challenge period.
Who pays the High Value Council Tax Surcharge: owner or tenant?
The owner. The consultation makes the legal owner liable: the freeholder, or a leaseholder whose lease was originally granted for more than 21 years.
Joint owners are jointly and severally liable. Where a company owns the home, the company pays; trustees pay for property held in trust.
Tenants keep paying ordinary council tax but not the surcharge. A company-owned home worth over £500,000 may also be paying the Annual Tax on Enveloped Dwellings.
Can I defer the mansion tax?
The consultation proposes a deferral scheme for your main home (not second homes, and not company-owned property) with two thresholds: household income of £35,000 or less and savings of £16,000 or less. It does not say whether you must meet one or both, so the calculator treats either as enough; a household member meeting disability criteria is a third proposed route.
Deferred charges would build up with interest, be secured on the property, and be paid when it is sold or transferred, or by your estate. The rates consulted on were the HMRC official rate and Bank of England base rate (both 3.75% when the consultation opened) and the 4.75% care deferred-payment rate.
Ten years deferred at 3.75% on a £2,500 charge comes to about £30,782.
Will the mansion tax threshold drop to £1.5 million?
Nothing has been announced. In September 2026 a cut to £1.5m was reported as under discussion in the Treasury ahead of the Budget on 28 October 2026.
If it happened, no charge for homes between £1.5m and £2m has been published, so the calculator only tells you whether your home would fall into scope. We will update this page on Budget day.
Does the mansion tax apply in Scotland, Wales or Northern Ireland?
No. The surcharge is an England-only measure: council tax is devolved in Scotland and Wales, and Northern Ireland uses domestic rates.
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Further Reading
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