Business Rates Calculator, 2026/27

How this is calculated

Business rates are worked out by multiplying a property's rateable value, an estimate of its annual open-market rental value set by the Valuation Office Agency, by a multiplier set each year by government. Properties with a rateable value below £51,000 generally use the lower small business multiplier, while larger properties use the standard multiplier.

Small business rate relief then reduces the bill further for businesses using only one property. This calculator applies 100% relief where the rateable value is £12,000 or less, and a straight-line taper down to no relief at £15,000, matching the standard small business rate relief structure.

The gross bill is the rateable value multiplied by the relevant multiplier; the net bill deducts any relief calculated on that basis. Businesses with more than one property, or in devolved nations with their own rates systems, will see different figures and should check their local billing authority.

Reliefs worth checking

Beyond small business rate relief, retail, hospitality and leisure businesses have historically received a percentage discount on their bills, rural rate relief supports certain village shops and pubs, and charities can receive mandatory relief of up to 80%. Each has its own qualifying conditions and is reviewed annually.

Transitional relief phases in large increases or decreases in bills following a revaluation, so a business whose rateable value has jumped sharply may not see the full increase immediately.

Managing the cost

Because rates are charged on the property regardless of how profitable the business is, they can be a heavy fixed cost for early-stage or seasonal companies, and worth factoring into any cash flow forecast alongside rent, insurance and utilities.

It is worth checking the rateable value shown on the Valuation Office Agency's register is accurate and current, since bills are based on that figure and errors or outdated information can lead to overpayment.

What is a rateable value?

It is the Valuation Office Agency's estimate of a property's open-market annual rental value on a fixed valuation date, used as the base figure that business rates multipliers are applied to.

Do I get small business rate relief automatically?

No, you usually need to apply to your local council, even though you may be eligible. Relief is not always applied automatically, so it is worth checking with your billing authority directly.

What if I have more than one business property?

Small business rate relief generally only applies in full where a property is your only one. Having a second property can reduce or remove relief on the first, though there are some exceptions for low-value additional properties.

Do rates apply if I work from home?

Usually not, if the space is genuinely domestic, but if part of your home is used exclusively and substantially for business, such as a dedicated converted outbuilding, the council may assess that part separately for rates.