(Image: Damian Shields/Colin Mearns/Derek McArthur)
Non-domestic rates are a property tax paid by the occupiers of business premises and make a significant contribution to local government finances in Scotland.
In 2025-2026, around £3 billion was collected locally across Scotland, which was pooled nationally by the Scottish Government before then being distributed to help fund local services.
How are bills worked out?
Broadly speaking, bills are calculated by multiplying the rateable value of a business property - which in most cases Scottish Assessors work out on the basis of the property’s estimated annual rental value - by a figure called the poundage.
The Scottish Government has set three poundage rates for the 2026-27 financial year, starting at 48.1p for properties with a rateable value of up to and including £51,000. The poundage then rises to 53.5p for properties valued between £51,001 and £100,000, and then to 54.8p for those valued at more than £100,000.
What reliefs are available?
However, the Scottish Government also provides a wide range of reliefs to help reduce business rates liabilities and cushion the impact of revaluations.
Transitional reliefs have also been implemented to limit gross bill increases following revaluations.
The bulk of rates relief support provided by the Scottish Government is through the Small Business Bonus Scheme, which in the 2025-26 financial year accounted for £480 million of the £763m invested by ministers in rates relief.
The Small Business Bonus Scheme offers rates relief of up to 100% for small firms occupying a single property with a rateable value of £12,000 or less, with support reducing on a sliding scale as rateable values rise.
Ministers retained the small business bonus thresholds for the 2026-27 financial year.
Is there relief for any specific sectors?
In addition, the Scottish Government offers a package of relief for certain businesses in the retail, leisure and hospitality sectors for 2026-27. Businesses on the mainland can qualify for rates relief of 15%, capped at £110,000 per business per year, if the premises are valued at up to and including £100,000, while hospitality premises and music venues on the mainland may receive 40% rates relief from 2026-27 to 2028-29.
Furthermore, hospitality businesses on islands and in the specified remote areas of Cape Wrath, Knoydart and Scoraig can be eligible for 100% rates relief from 2026-27 to 2028-29, capped at £110,000 per business per year.
There is also a wide range of other reliefs, including charity relief which was worth £225.7m in 2025-26.