Business Rates Calculator UK
Calculate your 2026/27 business rates instantly. Enter your rateable value and get your full liability, including Small Business Rate Relief, RHL multipliers and transitional relief.
Calculate Business Rates
Calculate your business rates liability for Non-Domestic Property in England and Wales
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What Are Business Rates?
Business rates are a tax on non-domestic properties in England, Scotland, and Wales — paid by the occupier of the property, not the owner. They apply to shops, offices, warehouses, factories, pubs, restaurants, hotels, and most other commercial and business premises.
Your rates bill is calculated using two figures:
- Rateable value — an estimate of your property's annual open market rental value, set by the Valuation Office Agency (VOA)
- Multiplier — the number of pence you pay per £1 of rateable value, set by the government each year
Annual Rates = Rateable Value × Multiplier
Rateable Value Explained
The rateable value is the VOA's estimate of what your property could be let for on the open market, based on rental evidence at a fixed date. Under the 2026 Rating List (effective from 1 April 2026), rateable values reflect rental market conditions as of 1 April 2024.
You can find your current rateable value on your rates demand letter or by using our business rates checker.
The 2026/27 Multipliers (England)
From 1 April 2026, England uses a five-multiplier system, replacing the previous two-rate structure:
| Multiplier | Rate (pence/£) | Applies to |
|---|---|---|
| Small Business | 43.2p | Non-RHL, rateable value below £51,000 |
| Standard | 48.0p | Non-RHL, rateable value £51,000–£499,999 |
| Small RHL | 38.2p | Retail, hospitality & leisure — below £51,000 |
| Standard RHL | 43.0p | Retail, hospitality & leisure — £51,000–£499,999 |
| High-Value | 50.8p | All properties with rateable value of £500,000 or above |
Wales uses a three-multiplier system (Retail 35.0p, Standard 50.2p, Higher 51.5p). The City of London adds a small premium on top of England's rates.
Small Business Rates Relief — 2026 Guide
Small Business Rate Relief (SBRR) can significantly reduce — or completely eliminate — your business rates bill. If your property's rateable value is under £15,000 and you only occupy one property, you are likely eligible for some level of relief.
SBRR Thresholds (England, 2026/27)
| Rateable Value | Relief | Rates Payable |
|---|---|---|
| Up to £12,000 | 100% relief | £0 |
| £12,001 – £14,999 | Tapered relief (100% to 0%) | Reduced |
| £15,000 and above | No SBRR | Full rate (small business multiplier may apply) |
Eligibility Criteria
- Your property's rateable value must be below £15,000
- Your business should only occupy one property
- If you occupy additional properties, each must have a rateable value below £2,900, and your total combined rateable value must not exceed £20,000 (or £28,000 in London)
- Relief is applied automatically in most cases — your council will write to confirm
Other Key Reliefs
- RHL multipliers — Retail, hospitality and leisure businesses with a rateable value below £500,000 automatically use the lower 38.2p or 43.0p multiplier. No application required.
- Transitional relief — Caps bill increases at 130% of the previous year's charge if your bill rises sharply after the 2026 revaluation.
- Charitable rate relief — Up to 80% if your property is used for charitable purposes.
- Rural rate relief — Up to 100% for eligible sole businesses in rural areas with a population under 3,000.
How to Calculate Business Rates
Here is how to calculate business rates UK step by step, with a worked example for 2026/27.
Step 1 — Find Your Rateable Value
Log into the VOA's website or check your rates demand letter. Make sure you are reading the 2026 Rating List value (in force from 1 April 2026), not the older 2023 list.
Step 2 — Choose the Correct Multiplier
Select the applicable 2026/27 multiplier based on your property's rateable value, location, and whether you qualify as a retail, hospitality, or leisure property. Use the table in the section above.
Step 3 — Apply Any Reliefs
Deduct eligible reliefs — SBRR, RHL multipliers, charitable relief, or transitional relief — from your gross liability to get your final bill. Our step-by-step calculation guide walks you through each relief in detail.
Worked Example — Small Retail Shop (England, 2026/27)
- Rateable value: £18,000
- Sector: Retail (qualifies for RHL)
- Multiplier: Small RHL — 38.2p
- Gross rates: £18,000 × 0.382 = £6,876
- SBRR: RV £18,000 > £15,000 — not eligible
- Transitional relief: Not applicable
- Annual rates payable: £6,876
- Monthly: £573
What if My Bill Has Changed a Lot?
If your bill has risen significantly following the 2026 revaluation, transitional relief automatically caps increases at 130% of your 2025/26 charge. Enter your previous rateable value in the calculator above to see whether you qualify.
Business Rates Calculator Explained
Our free calculator covers the full 2026/27 rating year for England (all five multipliers), Wales, and the City of London. Here is what each field means and what you will see in your results.
Calculator Inputs
- Rateable Value (£) — The figure shown on your rates demand or the VOA listing for your property. Select whether you are entering a 2026 or 2023 Rating List value using the dropdown.
- Previous Rateable Value (£) — Optional. Enter your 2023 Rating List value if you want the calculator to check whether you qualify for transitional relief.
- Location — England, Wales, or City of London. Each uses different multipliers and relief thresholds.
- Sector — Retail, hospitality, leisure, charity, or rural. This determines which multiplier or relief applies automatically.
- Multiple Properties — Tick if your business occupies more than one property — this affects your SBRR eligibility.
Your Results Include
Frequently Asked Questions
Rateable value is the VOA's estimate of the annual rent your property could command on the open market at a fixed valuation date. For the 2026 Rating List, that date is 1 April 2024. Rateable values change at each national revaluation — the most recent was 1 April 2026.
You can find your rateable value using our business rates checker or on the VOA website.
In England, you qualify for Small Business Rate Relief if your property has a rateable value below £15,000 and you only occupy one property. Properties valued at £12,000 or less pay no business rates at all. Between £12,001 and £14,999, relief tapers down from 100% to 0%.
If you have additional properties, you may still qualify if each extra property has a rateable value below £2,900 and your combined total is under £20,000 (£28,000 in London). Wales has its own SBRR thresholds (£6,000 = 100% relief, tapering to £12,000).
You start paying business rates as soon as you become the ratepayer for a non-domestic property — usually when you take on a lease or begin trading. Your local council will send a rates demand (typically in March or April) showing the full-year charge and monthly instalment amounts.
If you move in mid-year, your first bill will be pro-rated. Empty properties are usually exempt for the first 3 months (6 months for industrial premises), after which the full rate applies.
There are several legitimate ways to reduce how much business rates you pay UK businesses:
- Small Business Rate Relief — up to 100% off if your rateable value is below £12,000
- RHL multipliers — retail, hospitality and leisure properties automatically use the lower 38.2p or 43.0p rate
- Charitable rate relief — up to 80% for properties used for charitable purposes
- Rural rate relief — up to 100% for sole eligible businesses in qualifying rural areas
- Challenge your rateable value — use the Check, Challenge, Appeal (CCA) process if you believe your rateable value is too high
- Transitional relief — automatically applied if your bill rises sharply after the 2026 revaluation
Use our SBRR calculator to find out exactly how much relief you could receive.
Some properties are entirely exempt from business rates:
- Agricultural land and buildings (including fish farms)
- Buildings used for the training or welfare of disabled people
- Buildings registered as places of religious worship
- Properties in certain enterprise zones
Home-based businesses generally only attract business rates if a clearly defined part of the property is used exclusively and regularly for commercial purposes. If you are unsure, contact the VOA for advice.
The calculator uses the government's confirmed 2026/27 multipliers for England (all five rates), Wales, and the City of London. It applies SBRR and transitional relief exactly as the government rules specify. For the vast majority of businesses, the figure will closely match the actual rates demand.
Minor differences may arise if your council applies local discretionary reliefs, hardship relief, or if there have been mid-year changes to your rateable value. Always verify against your official rates demand or contact your local council for a definitive figure.