What are business rates?

A tax on non-domestic property, worked out from a value somebody else set. Two different organisations control your bill, and knowing which is which is the difference between a five-minute fix and a wasted month.

4 minute readUpdated Reviewed against the 2026 rating list

The short answer

Business ratesThe tax most non-residential properties in England pay to their local council, similar to council tax but for shops, offices, warehouses and other business premises. are a property tax. Each property gets a rateable valueThe official estimate of a property's annual rental value on a fixed valuation date. Your rates bill is based on this figure, not on what you actually pay in rent. — an estimate of its annual rental value — set by the Valuation Office, part of HMRC since April 2026. Your council multiplies that by a rate set by government, subtracts any reliefs, and bills you the difference.

Business rates are the tax on non-domestic property in England — shops, offices, warehouses, factories, pubs, surgeries, storage units. If you occupy commercial premises, you almost certainly pay them, and for many small businesses they are a significant fixed cost alongside rent and staff.

Two organisations, two different jobs

This is the part worth getting straight before anything else, because it determines who you contact.

WhoWhat they controlCan you dispute it?
Valuation OfficeYour rateable value, and the floor areas behind itYes
GovernmentThe multiplier — pence in the pound, set each yearNo
Your councilIssuing the bill, and applying the reliefs you qualify forAsk them

How the bill is put together

Your bill starts with the rateable value, multiplies it by a figure set by central government, and then subtracts any reliefs you qualify for. For 2026/27 the multiplierThe pence-in-the-pound rate the government sets each year. Your rates bill is roughly Rateable Value × multiplier, before any reliefs are applied. is 43.2p in the pound below a rateable value of £51,000 and 48.0p at or above it, so a rateable value of £20,000 produces a gross bill of about £8,640 — not £20,000.

Nobody in that chain is negotiating with you. The rateable value is a professional estimate, the multiplier is set nationally each year, and reliefs follow published rules. What you can influence is whether the facts behind the valuation are correct.

Your valuation is already public

Every rateable value in England is published, including your neighbours'. You can look your own up on gov.uk in about a minute. What is not published anywhere is how yours compares with genuinely similar properties nearby — and that comparison is what tells you whether it looks wrong.

That is the whole idea behind this site: your own number is easy to find, so the useful thing is everybody else's.

Revaluations, and why your bill jumped

The VOA revalues all non-domestic property periodically. The current list took effect on 1 April 2026 and is based on rental values as at 1 April 2024. Between revaluations your rateable value normally stays put, which is why bills can sit still for years and then move sharply.

Reliefs that reduce the bill

Reliefs are applied by your council, and several depend on your business rather than the property — which is why our estimates are shown before reliefs.

Small Business Rate Relief

100% at a rateable value of £12,000 or less; tapering away to nothing at £15,000.

Retail, hospitality & leisure

A lower multiplier for qualifying uses — 38.2p for 2026/27.

Empty property relief

A limited rate-free period after a property becomes vacant.

Charitable & rural relief

80% mandatory for charities; also for the last shop or pub in a small settlement.

Transitional relief

Caps how fast a bill can rise after a revaluation.

Hardship relief

Discretionary, granted by your council case by case.

General information, not financial or legal advice. Independent service — not endorsed by the VOA or HMRC. Official rateable values and formal decisions come only from the VOA/HMRC. England only.