How much are business rates: key facts
- The cost of business rates depends mainly on one figure: the property's rateable value (RV). That is the Valuation Office's estimate of the yearly rent at 1 April 2024, not your actual rent.
- In England in 2026/27 the bill before relief is 38.2p to 50.8p per £1 of RV. Many properties pay an extra 1p, which makes it 39.2p to 51.8p.
- In Wales in 2026/27 it is 35p, 50.2p or 51.5p per £1 of RV. The rate depends on the description in the rating list and the size of the RV.
- In England a business with one property and an RV of £12,000 or less usually pays no business rates because of small business rate relief. In Wales the full-relief limit is £6,000.
- An English property with an RV just under £51,000 uses a lower multiplier than one just over it. On these examples, £1,000 more RV adds roughly £2,800 to £2,900 to the bill.
- Next-door premises with the same RV can pay different amounts. In England, shops, cafes, pubs and hotels use lower multipliers than offices, banks or estate agents.
- We don't quote an "average" business rates bill. RVs range from a few thousand pounds to millions, so the useful number is your own property's RV.
How much are business rates in 2026/27?
Business rates cost a set number of pence for every £1 of a property's rateable value. In England in 2026/27 that is 38.2p to 50.8p, plus 1p for many properties already in the rating list. In Wales it is 35p, 50.2p or 51.5p. Reliefs are then taken off.
The rate per pound is called the multiplier. To estimate a bill before relief, multiply the rateable value by the right rate from the table. A property with an RV of £20,000 that pays 44.2p per £1 costs £8,840 a year before relief.
| 2026/27 | Rate per £1 of RV | Plus the 1p supplement (England only) |
|---|---|---|
| England: occupied retail, hospitality or leisure property, RV under £51,000 | 38.2p | 39.2p |
| England: occupied retail, hospitality or leisure property, RV £51,000 to £499,999 | 43p | 44p |
| England: other property (including all empty property), RV under £51,000 | 43.2p | 44.2p |
| England: other property, RV £51,000 to £499,999 | 48p | 49p |
| England: any property, RV £500,000 or more | 50.8p | 51.8p |
| Wales: retail (smaller shops, RV below £51,000) | 35p | n/a |
| Wales: standard | 50.2p | n/a |
| Wales: higher (RV above £100,000, with some public-service exceptions) | 51.5p | n/a |
In England in 2026/27, the 1p supplement usually applies to properties that were already in the rating list on 31 March 2026, unless they get transitional relief, supporting small business relief or rural rate relief. New properties don't pay it. Our guide to how business rates are calculated covers who pays it, which multiplier applies to you and the order reliefs come off. The separate business rates multipliers page has the full list of rates.
The City of London sets its own multipliers. Other London ratepayers may also see the separate Business Rates Supplement on their bill. Scotland and Northern Ireland have different systems and aren't covered here.
How much are business rates for a shop, office, pub or warehouse?
Here are some English examples for 2026/27, including the 1p supplement. A cafe with an RV of £14,000 that is the owner's only property pays about £3,659 after small business rate relief. An office with an RV of £25,000 pays £11,050, and a warehouse with an RV of £120,000 pays £58,800. These are made-up examples, not typical bills.
The table puts invented properties at a stated rateable value through the 2026/27 rules for England. Each one is occupied and is the business's only property, and none gets transitional relief or supporting small business relief. That means the 1p supplement applies to all of them. Your own bill depends on your RV and circumstances, so use these to get a sense of scale, not as a forecast.
| Example property (England) | RV | Rate incl. 1p | Before relief | Relief | Bill for 2026/27 |
|---|---|---|---|---|---|
| Small shop | £10,000 | 39.2p | £3,920 | Small business rate relief, 100% | £0 |
| Cafe | £14,000 | 39.2p | £5,488 | Small business rate relief, about a third: − £1,829.33 | £3,658.67 |
| Office suite | £25,000 | 44.2p | £11,050 | None | £11,050 |
| Restaurant | £30,000 | 39.2p | £11,760 | None | £11,760 |
| Pub | £35,000 | 39.2p | £13,720 | Pubs relief, 15%: − £2,058 | £11,662 |
| Warehouse | £120,000 | 49p | £58,800 | None | £58,800 |
| Hotel | £150,000 | 44p | £66,000 | None | £66,000 |
| Large office building | £600,000 | 51.8p | £310,800 | None | £310,800 |
How some of the lines are worked out:
- Cafe: £14,000 × 0.392 = £5,488. Small business rate relief at this RV divides the bill by 3,000 ÷ (£14,000 − £12,000) = 1.5, so £5,488 ÷ 1.5 = £3,658.67.
- Pub: £35,000 × 0.392 = £13,720. Pubs and live music venues relief takes off 15% (£2,058), leaving £11,662.
- Hotel: £150,000 × 0.44 = £66,000. A hotel is hospitality, so it uses the lower 43p rate rather than 48p, plus the 1p supplement.
If the property were new to the rating list this year, take the 1p off. The office suite, for example, would be £25,000 × 0.432 = £10,800.
How a property's RV is set depends on its type. Shops are often zoned, offices are measured by floor area, and pubs and larger hotels are valued on trade. The guides to shops, offices, pubs, restaurants, hotels and warehouses explain each one. To try your own figures, use the business rates calculator. It doesn't add the 1p supplement.
How much are business rates for a small business?
Often nothing, if the business has one property. In England, small business rate relief means no rates on an RV of £12,000 or less, with the relief tapering away by £15,000. In Wales, full relief stops at £6,000 and tapers away by £12,000.
Small business rate relief makes the biggest difference to what small premises cost. In England it works like this for a business with one property:
| Shop or cafe in England, only property | Before relief (39.2p) | Relief | Bill for 2026/27 |
|---|---|---|---|
| RV £12,000 | £4,704 | 100% | £0 |
| RV £13,500 | £5,292 | 50% | £2,646 |
| RV £14,000 | £5,488 | About 33% | £3,658.67 |
| RV £15,000 | £5,880 | None | £5,880 |
Between an RV of £12,000 and £15,000, the bill in this example goes from nothing to £5,880 a year. A few hundred pounds of RV in that band can make a real difference, so if your RV is just above £12,000 or £15,000 it is worth checking the property details it is based on.
The relief usually only applies if the business occupies one property. There are exceptions for small extra properties, and you keep the relief for a time after taking on a second one. If the cafe above lost the relief because the business had other premises, it would pay the full £5,488.
Wales is less generous at the top end. Take a Welsh shop with an RV of £9,000 on the 35p retail multiplier: £9,000 × 0.350 = £3,150, less 50% small business rates relief = £1,575. The same shop in England, if it were the business's only property, would pay nothing. In Wales the relief is limited to two properties per business in each council area.
From 1 April 2027, the government has announced that full relief in England will extend to an RV of £18,000, tapering to £21,000, for qualifying retail, hospitality and leisure property. This was announced at the Budget on 28 October 2026 and is subject to regulations.
Why do two similar premises pay very different business rates?
Even with the same rateable value, bills can differ because of what the property is used for, which side of the £51,000 threshold it falls, whether it is the business's only property, whether it is new to the list, any transitional relief and whether it is occupied. A different RV for similar-looking premises can also point to an error worth checking.
These are the most common reasons, with English examples for 2026/27:
1. What the property is used for
A cafe and an estate agent next door to each other might both have an RV of £30,000. The cafe counts as hospitality and pays 39.2p per £1, which is £11,760. Estate agents are excluded from the retail, hospitality and leisure multipliers, so that office pays 44.2p per £1, which is £13,260. Same RV, but the estate agent pays £1,500 more. Banks, betting shops, dentists, GP surgeries, solicitors and accountants are also excluded, even when they are on a high street.
2. Which side of £51,000 the RV falls
| Property | RV £50,000 | RV £51,000 | Difference |
|---|---|---|---|
| Office (44.2p / 49p) | £22,100 | £24,990 | £2,890 |
| Shop or restaurant (39.2p / 44p) | £19,600 | £22,440 | £2,840 |
At £51,000 the whole RV moves onto the higher rate, so the bill jumps by much more than £1,000 × the rate.
3. Number of properties
Small business rate relief usually depends on the business having one property, so two identical small units can be charged differently. One may pay nothing while the other pays in full.
4. Old or new to the rating list
A cafe with an RV of £30,000 that was already in the list on 31 March 2026 typically pays the 1p supplement, which comes to £11,760. A newly built unit with the same RV pays 38.2p, which comes to £11,460. That is £300 less.
5. Transitional relief and supporting small business relief
These cap how far a bill can rise after the 2026 revaluation, based on that property's own previous bill. Two properties with the same new RV can therefore pay very different amounts this year if one used to have a much lower RV. The council works these out from your bill history, so you can't read them off the RV.
6. Empty or occupied
In England, the lower retail, hospitality and leisure multipliers apply only to occupied property. An empty shop with an RV of £30,000 that has used up its empty property relief is charged at 43.2p, or £12,960 a year before any 1p supplement. The same shop occupied would be £11,460 before the supplement.
7. The rateable value itself
If similar premises nearby have noticeably lower RVs, that is worth looking into. The valuation might use the wrong floor area, the wrong use or features the property doesn't have. You can compare with similar properties using GOV.UK's "Find a business rates valuation" service. Our rateable value guide explains what the figure is meant to show.
How much can business rates relief take off the bill?
Anything from a small percentage to the whole bill. In England in 2026/27, small business rate relief and rural rate relief can remove the bill completely, charitable relief takes off 80%, and pubs relief takes off 15%. Transitional relief and supporting small business relief limit how much a bill rises after the revaluation.
Some illustrations at stated RVs (England, 2026/27, including the 1p supplement where it applies):
- Charity shop, RV £20,000: on the 39.2p retail rate the bill before relief is £7,840. Mandatory charitable relief takes off 80% (£6,272), leaving £1,568. The council can give discretionary relief on top. A charity can't get small business rate relief and charitable relief at the same time.
- Village shop, RV £8,000: if it is the only general store, food shop or post office in an eligible rural area (population below 3,000), rural rate relief means it pays nothing. The RV limit is £8,500 for shops and post offices and £12,500 for the only pub or petrol station.
- Pub, RV £35,000: 15% pubs and live music venues relief takes £2,058 off a £13,720 bill. Cafes, restaurants and hotels don't get this relief.
- Empty property: in England, usually no rates for the first 3 months after it becomes empty, or 6 months for industrial property such as warehouses. After that, full rates are charged. Listed buildings and properties with an RV under £2,900 pay nothing while empty.
Transitional relief caps the 2026/27 increase at 5%, 15% or 30% depending on the RV. For businesses that lost certain reliefs at the revaluation, supporting small business relief limits the rise to £800 or a percentage, whichever is greater. The council applies both, and the figure depends on last year's bill.
In Wales, the main ones are small business rates relief, 80% charitable relief and the 15% Food and Drink Hospitality Rates Relief. The hospitality relief is capped at £110,000 per business and you apply for it through your council. Empty property is free for 3 months, or 6 if industrial, as long as it was occupied for more than 26 weeks beforehand.
How much are business rates in Wales compared with England?
At the same rateable value, smaller shops usually pay less in Wales, while offices, cafes, pubs and larger properties usually pay more. That is because Wales has a 35p retail rate but 50.2p and 51.5p for most other property, against England's 38.2p to 49p for most property.
Here are the same made-up properties on each side of the border for 2026/27. The England figures include the 1p supplement, and none of the examples get small business rate relief.
| Example property | RV | England | Wales |
|---|---|---|---|
| Shop | £20,000 | £20,000 × 0.392 = £7,840 | £20,000 × 0.350 = £7,000 |
| Office | £20,000 | £20,000 × 0.442 = £8,840 | £20,000 × 0.502 = £10,040 |
| Pub, after 15% hospitality relief | £35,000 | £13,720 − £2,058 = £11,662 | £17,570 − £2,635.50 = £14,934.50 |
| Warehouse | £120,000 | £120,000 × 0.49 = £58,800 | £120,000 × 0.515 = £61,800 |
In Wales the rate follows the description in the rating list. Only shops, kiosks, pharmacies and post offices with an RV below £51,000 get the 35p retail rate. Cafes, pubs, restaurants, salons, banks and betting shops pay the standard 50.2p. The same multiplier applies whether a Welsh property is occupied or empty, and Wales has no 1p supplement.
Wales also has its own transitional relief for 2026. Where a bill rises by more than £300, you pay 33% of the increase in 2026/27 and 66% in 2027/28.
What is the average business rates bill in the UK?
There isn't a meaningful single average. Bills depend almost entirely on rateable value, which ranges from nothing payable for many small premises to hundreds of thousands of pounds for large buildings. The rules also differ between England, Wales, Scotland and Northern Ireland. The number to start from is your property's own RV.
We don't publish an "average" business rates bill on this site. An average across a market stall, a high street shop, a distribution warehouse and a city office block would not tell any of them what they should pay. Many small properties in England pay nothing at all because of small business rate relief, which drags any simple average down.
A more useful way to think about cost:
- Find the RV. It is on your bill, or you can search GOV.UK's "Find a business rates valuation" service for any address. If you are looking at premises to rent, check them before you sign.
- Apply the rate per £1 from the table at the top of this page.
- Take off any relief you clearly qualify for, or put the figures into the calculator.
People sometimes call these "business council rates" because the council sends the bill and collects the money. It is a separate charge from council tax. Councils set neither the RV nor the multiplier: the Valuation Office sets the RV and the multipliers are set nationally. In Wales they are often called non-domestic rates.
How much will business rates be from April 2027?
In England, the multipliers announced for 2027/28 are 39.5p and 44.5p for retail, hospitality and leisure property, 44.7p and 49.7p for other property, and 52.5p for RVs of £500,000 or more. They were announced at the Budget on 28 October 2026, are due from 1 April 2027 and are subject to regulations.
Here are the same English examples under the announced 2027/28 rules. They assume the RV doesn't change and the 1p supplement still applies (it has been extended to 2027/28). They don't allow for transitional relief.
| Example (England) | RV | 2026/27 | 2027/28 (announced) |
|---|---|---|---|
| Cafe, only property | £14,000 | £3,658.67 | £0 (small business rate relief extended to £18,000 for qualifying retail, hospitality and leisure) |
| Office suite | £25,000 | £11,050 | £25,000 × 0.457 = £11,425 |
| Restaurant | £30,000 | £11,760 | £30,000 × 0.405 = £12,150 |
| Pub (35% pubs relief from April 2027) | £35,000 | £11,662 | £14,175 − £4,961.25 = £9,213.75 |
| Warehouse | £120,000 | £58,800 | £120,000 × 0.507 = £60,840 |
For qualifying retail, hospitality and leisure property, pubs and live music venues, the Budget also announced a real-terms freeze. Bills in 2027/28 and 2028/29 are to rise by no more than CPI inflation, though this doesn't cover increases from improvements to the property or from losing other reliefs. So the restaurant's actual 2027/28 bill could be lower than the £12,150 shown. Vape shops are due to lose small business rate relief and the lower multipliers.
In Wales, the lower multiplier is due to extend to some food and drink, visitor accommodation and leisure properties from 1 April 2027. The rates will be set in the Welsh 2027-28 budget.
How can I tell if I'm paying more business rates than I should?
Check three things: that the rateable value is based on the right facts about your property, that your bill uses the right multiplier, and that any reliefs you qualify for are on it. The council deals with multipliers and reliefs. The rateable value can be checked and challenged free through your business rates valuation account.
Work through these questions:
- Is the multiplier right? In England, an occupied shop, cafe, pub, hotel or gym charged at 43.2p or 48p rather than 38.2p or 43p should be queried with the council. So should a 1p supplement on a property that gets transitional relief.
- Are the reliefs there? If you have one property with an RV under £15,000 in England, or £12,000 in Wales, check that small business rate relief is shown. Ask the council about anything you think is missing.
- Is the RV based on the right facts? Look up your valuation and check the floor area, use, parking and features. Compare it with similar properties nearby.
If the RV looks wrong, the route is Check, then Challenge, then Appeal through the Valuation Office. You can do this yourself for free. A rating surveyor can do it for you if you'd rather, with fees agreed directly with them. A check can lead to the RV going down, staying the same or going up, and there is no guarantee of a lower bill. Our guide to how to challenge business rates covers each stage and its time limits.
Related guides
How much are business rates: frequently asked questions
How much are business rates in the UK?
In England in 2026/27, business rates before relief are 38.2p to 50.8p for every £1 of rateable value, plus 1p for many properties already in the rating list. In Wales they are 35p, 50.2p or 51.5p per £1. Scotland and Northern Ireland have their own systems. Reliefs can then reduce the bill, in some cases to nothing.
How much are business rates for a small shop?
In England, a shop that is the business's only property and has a rateable value of £12,000 or less usually pays no business rates because of small business rate relief. Above that the relief tapers, so a shop with an RV of £15,000 pays the full amount, which is £5,880 in 2026/27 including the 1p supplement. In Wales full relief stops at an RV of £6,000.
What is the average business rates bill?
We don't quote one, because bills depend almost entirely on the property's rateable value, which ranges from a few thousand pounds to millions. An average across all property types wouldn't tell you what your premises should cost. Look up your property's rateable value and apply the multiplier instead.
Are business rates the same as council rates?
People often call them business council rates because the council sends the bill and collects the money, but they are not council tax. The council doesn't set the rateable value or the multiplier. The Valuation Office sets the rateable value and the multipliers are set nationally.
Is my rateable value what I pay in business rates?
No. The rateable value is the Valuation Office's estimate of the yearly rent the property could have been let for at 1 April 2024. Your bill is a fraction of it, worked out with the multiplier, minus any reliefs.
Why does my neighbour pay less business rates than me?
Common reasons are a different rateable value, a different multiplier because one business is retail, hospitality or leisure and the other isn't, small business rate relief for a business with one property, transitional relief based on last year's bill, or the 1p supplement applying to one property and not the other. If the rateable values differ for similar premises, it may be worth checking yours.
How much are business rates on an empty property?
In England, an empty property usually pays nothing for the first 3 months, or 6 months for industrial property, then full rates. Empty property doesn't get the lower retail, hospitality and leisure multipliers, so an empty shop is charged at 43.2p or 48p per £1. Listed buildings and properties with a rateable value under £2,900 pay nothing while empty.
How can I estimate business rates before taking on premises?
Search the address on GOV.UK's Find a business rates valuation service to get the rateable value, then multiply it by the multiplier that would apply to your use of the property and take off any relief you would clearly qualify for. The business rates calculator on this site does the main steps. Remember the rateable value is not the rent, and the bill is a separate cost on top of it.
Are business rates higher in Wales than in England?
It depends on the property. Smaller shops on the Welsh 35p retail multiplier can pay less than in England, but most other property in Wales pays 50.2p or 51.5p per £1, which is more than England's main rates. Small business rates relief in Wales also stops at a lower rateable value.
How much will business rates go up in April 2027?
In England the multipliers announced at the Budget on 28 October 2026 for 2027/28 are 39.5p, 44.5p, 44.7p, 49.7p and 52.5p, due from 1 April 2027 and subject to regulations. Qualifying retail, hospitality and leisure property, pubs and live music venues are due a real-terms freeze, with bills rising no more than inflation, and pubs relief is due to rise to 35%.
Can I pay business rates monthly?
Councils send bills in February or March for the year ahead, and you can ask your council about paying in instalments. Contact the council that sent the bill.
Can I reduce how much I pay in business rates?
You may be able to if a relief you qualify for is missing from the bill, or if the rateable value is based on wrong details. Ask the council about reliefs. You can check and challenge the rateable value free through your business rates valuation account, or a rating surveyor can do it for you. There's no guarantee of a lower bill.
Sources
We checked the facts on this page against these official sources on 12 November 2026:
- Estimate your business rates (GOV.UK)
- Business rates relief (GOV.UK)
- 8/2026: Details of the Budget package and the multipliers for 2027/2028 (GOV.UK)
- Non-domestic rates multipliers (Business Wales)
- Non-domestic rates: small business rates relief (Business Wales)
- Business rates in Wales (Business Wales)