The bands
| 2026 value | A year | About a month (12 payments) |
|---|---|---|
| £2m to £2.5m | £2,500 | £208 |
| £2.5m to £3.5m | £3,500 | £292 |
| £3.5m to £5m | £5,000 | £417 |
| £5m and above | £7,500 | £625 |
Charges confirmed at the Budget on 28 October 2026 and being legislated in the Finance Bill 2026-27, so not yet law. They rise each year with CPI inflation from 2029/30. Monthly figures are rounded; the consultation proposed 12 monthly instalments, or 10 on request.
These are the charges for the first year, 2028/29. They rise each year with CPI inflation from 2029/30, in the same way many other fixed charges are uprated. The government's factsheet labels the top band £5m and above.
What it could cost over 20 years
A fixed charge sounds modest until you add it up. The surcharge rises with inflation every year, and there is no end date. If inflation averages 5% a year, here is what each band adds up to over 20 years.
| 2026 value | First year | 20 years at 2% a year | 20 years at 5% a year |
|---|---|---|---|
| £2m to £2.5m | £2,500 | £60,743 | £82,665 |
| £2.5m to £3.5m | £3,500 | £85,041 | £115,731 |
| £3.5m to £5m | £5,000 | £121,487 | £165,330 |
| £5m and above | £7,500 | £182,230 | £247,995 |
Illustration only, not a forecast. Assumes the home stays in the same band from 2028/29 and the charge rises each year by the rate shown: 2% is the Bank of England inflation target, 5% a higher-inflation case. Revaluations every five years could move a home between bands, and money paid in later years is worth less in today's terms.
What each step costs
| Line crossed | Extra a year | Over 20 years at 5% inflation |
|---|---|---|
| £2m (from nothing) | £2,500 | £82,665 |
| £2.5m | £1,000 | £33,066 |
| £3.5m | £1,500 | £49,599 |
| £5m | £2,500 | £82,665 |
An illustration, not a forecast. Assumes the charge rises with CPI at 5% a year and the home stays on the same side of the line. At the Bank of England's 2% target the totals would be about a quarter lower.
The biggest step is the first one. A home the Valuation Office puts at £1.99m pays nothing; a home at £2m pays £2,500 a year. That is why homes just above the threshold are the ones where the value is most worth checking. There is more on this in what if my home is worth just over £2m?
How the value is fixed
Each home's band depends on the Valuation Office's view of its value in April 2026, not today's market. Homes are revalued every five years, with the first revaluation in 2033. Until then, a rise or fall in prices is not expected to move a home between bands on its own. See what if house prices fall?
Physical changes are treated differently. Under the consultation proposals, a home significantly improved or extended after the surcharge starts would be revalued at the next revaluation or when it is sold, whichever comes first. Homes split into flats or merged, demolitions and new homes are recorded as they happen.
Paying the charge
Councils will collect the surcharge. Bills are due to go out in March 2028 for the year starting in April. By default the charge is paid in 12 monthly instalments, and you can ask to pay over 10 months instead. Owners who meet the income, savings or disability tests may be able to defer the charge until the home is sold.
Still to be decided
- Whether the thresholds themselves will move at the 2033 revaluation. The government says it will decide that alongside each revaluation.
- The detailed rules, which go into the Finance Bill 2026-27 and the regulations that follow it.
Band questions
What are the mansion tax bands?
Four bands on April 2026 values, confirmed at the Budget on 28 October 2026: £2m to £2.5m pays £2,500 a year, £2.5m to £3.5m pays £3,500, £3.5m to £5m pays £5,000 and £5m and above pays £7,500. The charges rise each year with CPI inflation from 2029/30.
Is the mansion tax a percentage of my home's value?
No. It is a fixed yearly charge for each band, so a £2.1m home and a £2.4m home pay the same.
Can my band change?
Homes are revalued every five years, with the first revaluation in 2033. Under the consultation proposals, a home significantly improved or extended after April 2028 would be rebanded at the next revaluation or on sale, whichever is sooner, and homes that are split or merged are entered on the list afresh. You can challenge a band you think is wrong.
Last checked against the government's Budget documents and consultation response on 30 October 2026. The surcharge is being legislated in the Finance Bill 2026-27 and is not yet law. Some detail is still to come in regulations.