What your result means
The headline number is the full annual cost of holding the second home: mortgage repayments, standard council tax plus any second home premium your council charges, insurance, utilities kept running while you are away, a maintenance reserve, and service charge or ground rent if the property is leasehold. Dividing that by the nights you actually stay there gives a cost-per-night figure that helps compare owning against simply booking a place for the weeks you would use it. This is a running-cost estimate, not a purchase tax, mortgage affordability or capital gains calculation. For those, see our stamp duty calculator and capital gains calculator, and our guide to buying a second home.
Worked example
Take a £450,000 cottage in Pembrokeshire, Wales, with a £200,000 mortgage at 5.2% over a 20-year term. Monthly repayments come to roughly £1,342, or about £16,105 a year. The standard council tax band charge is £2,500, and the council applies its full 300% second home premium, adding £7,500. Insurance runs £600 a year, utilities kept on through the winter cost £180 a month (£2,160 a year), and a 1% maintenance reserve on the property's value adds £4,500. There is no service charge or ground rent since it is freehold. That totals just over £33,300 a year, or about £2,780 a month. If the family uses the cottage 40 nights a year, that is roughly £834 a night. These figures are illustrative only; your own council's premium may be lower.
How this is calculated
Mortgage repayments use standard UK monthly-compounding amortisation on the balance, rate and term you enter. Council tax premiums on second homes are entirely discretionary, set by each local billing authority, up to a national ceiling that differs by nation.
| Nation | Second home premium ceiling | In force from |
|---|---|---|
| England | Up to 100% (double the standard bill) | 1 April 2025 |
| Wales | Up to 300% | 1 April 2023 |
| Scotland | Up to 100% | 1 April 2024 |
A separate, proposed High Value Council Tax Surcharge would apply in England from 2028-29 on properties valued (in 2026 prices) above £2 million: £2,500 a year for £2m to £2.5m, £3,500 for £2.5m to £3.5m, £5,000 for £3.5m to £5m, and £7,500 above £5m. It was out for public consultation from 19 May to 14 July 2026, so the design may still change before it takes effect; this calculator includes it only if you tick the box, and only for England.
What this calculator does not cover
It does not cover Stamp Duty Land Tax or the equivalent devolved purchase taxes (see our stamp duty calculator), business rates for holiday lets that pass the letting-day test instead of paying council tax, or capital gains on a future sale. Scotland's reported removal of its 100% council tax premium cap from April 2026 is not included in this calculator's maximum, since it could not be verified against a primary Scottish Government or COSLA source at the time of writing; if you are in Scotland, check your own council's current rate directly rather than relying on the 100% figure here. The High Value Council Tax Surcharge is a proposed measure still subject to consultation, not yet law.
Questions
Do I have to pay the second home premium?
Only if your local council has chosen to charge one. It is discretionary, so premiums vary by council and some charge nothing extra at all. Check your own council's website for its current rate.
Is Scotland's premium cap really being removed in 2026?
This is reported in secondary sources but was not independently confirmed against a Scottish Government or COSLA source, so it is flagged as unverified and not built into this calculator's figures.
What is the High Value Council Tax Surcharge?
A proposed England-only annual charge on homes worth over £2 million, planned from April 2028-29 and still subject to consultation results expected after mid-2026. It is separate from, and additional to, ordinary council tax and the second home premium.
Could my holiday let be assessed for business rates instead?
In England, a self-catering property available to let at least 140 days a year and actually let at least 70 days can move to business rates instead of council tax; Wales requires 252 days available and 182 days actually let. This calculator does not check that test for you.
How much should I budget for maintenance?
1% of the property's value a year is a common starting point, more for an older or coastal property.
Last reviewed 15 September 2026 against GOV.UK and GOV.WALES council tax premium guidance, the House of Commons Library briefing on second home premiums, and the GOV.UK High Value Council Tax Surcharge consultation page. Next review April 2027.
This calculator gives a general estimate from the figures you enter. It is not financial, tax, legal or mortgage advice. Rules change and personal circumstances matter, so confirm with a qualified professional before you act. See the full disclaimer.