Edinburgh Second Home Council Tax Rising in 2026 – What Property Owners Should Know
From 1 April 2026, council tax on second homes in Edinburgh is increasing significantly.
The City of Edinburgh Council has confirmed that the premium charged on second homes will rise to 300% on top of the existing council tax. This means many owners will pay four times the standard council tax rate for properties that are not their main residence.
This change follows earlier adjustments in 2024, when the council introduced a 100% premium, doubling the council tax charge for second homes.
The added amount has meant that many second home owners are looking at their options… and hopefully we can help!
What counts as a second home?
In Edinburgh, a property is usually classified as a second home if it:
- Is furnished
- Is lived in for at least 25 days per year
- Is not anyone’s sole or main residence
Why is the council increasing the charge?
The policy is part of wider efforts to address Edinburgh’s housing shortage and encourage more homes to be used as permanent residences.
Like many cities, Edinburgh is facing increasing pressure on housing supply, and the council hopes the higher tax rate encourages some second homes to return to the residential market.
What this could mean for second home owners?
We’ve been speaking with quite a few property owners that are considering their options ahead of the change. Their options include:
- Continuing to use the property as a second home and swallowing the cost
- Selling the property
- Using it more regularly as a main residence
- or (and this is where we come in) Letting the property on a long-term basis
Considering letting your property?
Letting could work really well for many owners. It’s a way of making the property work financially for you, bringing the home back into daily use in the city and (potentially) still being somewhere you can stay in between lets. Not all tenants are looking for homes that they stay in for years.
There is a really strong demand for well-maintained rental homes throughout the city centre. So if you think this could be an option for you why not get in touch to have a chat? At A Flat In Town, we’ve been helping Edinburgh landlords for over 20 years and we’d be really happy to talk through the lettings process.
Info from Edinburgh Council
