# How to calculate your 2026/27 UK business rates

Calculate your UK business rates for the 2026/27 tax year using our step-by-step guide. Understand the new five-tier multipliers and find eligible reliefs.

**Published:** 2026-07-03  
**Updated:** 2026-07-04  
**Source:** https://aztajournal.com/gb/how-calculate-business-rates

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> Your UK business rates bill for 2026/27 is calculated using your premises' Rateable Value and a set multiplier. This guide details the five new multipliers introduced under the Non-Domestic Rating Act 2025, how to run the calculation, and how to apply essential reliefs.

## Key takeaways: How to calculate your business rates

Calculating your commercial property tax involves a structured national framework. To determine what you owe for the 2026/27 tax year, you must apply the official government formula and deduct any eligible discounts.

1. **Find your Rateable Value (RV)**: Locate the open-market rental valuation assigned to your property by the Valuation Office Agency.
2. **Apply the correct multiplier**: Identify which of the five new 2026/27 multiplier rates applies to your specific sector and valuation band.
3. **Run the basic calculation**: Multiply your Rateable Value by the pence-in-the-pound multiplier rate to find your gross annual liability.
4. **Subtract eligible reliefs**: Reduce your final bill by applying schemes such as Small Business Rate Relief or transitional caps.

### How is my business rates bill calculated?

Your gross business rates bill is calculated by multiplying your property's assigned Rateable Value by the correct sector multiplier. The Valuation Office Agency, which is part of HMRC, is responsible for setting the Rateable Value of your commercial premises. Conversely, your local municipal council is responsible for collecting the actual payments and administering local billing demands.

## What is Rateable Value (RV) for business premises?

Rateable Value is a professional estimate of the annual open-market rent a commercial property could achieve on a legally designated valuation date. The Valuation Office Agency determines this valuation using local market data, property size, and transactional evidence. Under the official 2026 revaluation, your Rateable Value is updated to reflect the rental market conditions that existed on 1 April 2024.

## What are the new business rates multipliers for April 2026?

For the 2026/27 tax year, the government has transitioned from two multipliers to five statutory tiers. This structural change was enacted under the Non-Domestic Rating (Multipliers and Private Schools) Act 2025. Your specific multiplier is determined by whether your business qualifies as Retail, Hospitality and Leisure, alongside the total value of your property's Rateable Value.

| Property Type | Rateable Value Threshold | 2026/27 Multiplier |
| --- | --- | --- |
| Small business — Retail, Hospitality & Leisure (RHL) | Under £51,000 | 38.2p (0.382) |
| Small business — Non-RHL | Under £51,000 | 43.2p (0.432) |
| Standard — RHL | £51,000 to £499,999 | 43.0p (0.430) |
| Standard — Non-RHL | £51,000 to £499,999 | 48.0p (0.480) |
| High-value (all commercial sectors) | £500,000 and above | 50.8p (0.508) |

## How to calculate your business rates (with examples)

Calculating your annual liability requires you to apply the appropriate decimal multiplier directly to your updated Rateable Value. Below are two distinct calculations showing how the modern tier system operates across different sectors and thresholds.

| Property Sector | Rateable Value | Applicable Multiplier | Gross Annual Liability |
| --- | --- | --- | --- |
| Standard Dental Surgery (Non-RHL) | £60,000 | 48.0p (0.480) | £28,800 |
| Standard Café (RHL) | £110,000 | 43.0p (0.430) | £47,300 |

## Can I get Small Business Rate Relief or other discounts?

You can significantly lower your final tax liability by claiming statutory business rates discounts. Small Business Rate Relief is available if your property has a Rateable Value below £15,000 and is your sole business premises. Properties with an RV of £12,000 or less receive 100% relief, while those valued between £12,001 and £15,000 receive a tapered percentage discount.

Please note that the old temporary Retail, Hospitality and Leisure relief scheme officially ended on 31 March 2026. This temporary mechanism has been permanently replaced by the statutory lower permanent multipliers shown in the table above. Additional reliefs include:

- **Charitable rate relief**: Eligible registered charities and community amateur sports clubs can receive up to an 80% discount on their bills.
- **Rural rate relief**: Businesses located in qualifying rural settlements with populations under 3,000 can secure 100% relief.
- **Empty property relief**: Most commercial properties are exempt from paying business rates for empty periods of up to three months.

## How does 2026 transitional relief protect my business?

Transitional relief is a statutory system designed to cap how quickly your business rates bill can rise following a national revaluation. If your Rateable Value increased significantly between the older assessment and the 1 April 2024 valuation date, this protection limits the maximum yearly increase. The statutory caps for the 2026/27 tax year are divided into three clear property sizes.

1. **Small properties**: Increases are capped at a maximum of 5% for properties with a Rateable Value of £20,000 or less.
2. **Medium properties**: Increases are capped at a maximum of 15% for properties valued between £20,001 and £100,000.
3. **Large properties**: Increases are capped at a maximum of 30% for commercial properties valued above £100,000.

## What should I do if my business rates bill is incorrect?

If you believe your business rates bill has been calculated incorrectly, you must address the issue promptly. By default, local councils partition your invoice into 10 monthly instalments, but you can formally request your billing authority to spread payments across 12 months. If you suspect that your Rateable Value is incorrect, you must lodge a formal query through the separate Valuation Office Agency process.

The Valuation Office Agency manages all property disputes through the digital **Check, Challenge, Appeal** framework. You must verify your property details first, submit market evidence if you dispute the valuation, and appeal formally if a consensus is not reached. You must continue to pay your current business rates bill to your council throughout the duration of this challenge process.

### What is the difference between small business and standard multipliers?

Small business multipliers apply to properties with a Rateable Value under £51,000 and offer a lower pence-in-the-pound rate. Standard multipliers apply to properties valuable at £51,000 or above, up to £499,999, resulting in a higher basic calculation.

### How does the VOA choose the 1 April 2024 valuation date?

The Valuation Office Agency uses 1 April 2024 as the uniform valuation date for the 2026 revaluation. This fixed historical point ensures all commercial business premises in England are assessed fairly using consistent market rent conditions.

### Is Retail, Hospitality and Leisure relief still available in 2026?

The temporary Retail, Hospitality and Leisure discount scheme ended on 31 March 2026. It is replaced by a permanent system of lower RHL multipliers for properties under £500,000.

### Can you pay business rates over 12 months instead of 10?

Yes. While your local council will default to billing you over 10 instalments, you have a legal right to ask them to spread your payments over 12 months. This request must be made in writing directly to your local council.

### What is the threshold for Small Business Rate Relief in England?

To get 100% Small Business Rate Relief, your commercial property's Rateable Value must be £12,000 or less. A graduated sliding scale of relief is available for properties with a Rateable Value valued between £12,001 and £15,000.