Business Rates Calculator

Q: What are business rates?

Business rates (non-domestic rates) are a tax on properties used for business purposes in England and Wales. Your bill is calculated by multiplying your property's rateable value (set by the VOA) by the applicable multiplier. For 2025/26, the standard multiplier is 55.5p and the small business multiplier is 49.9p.

Q: How is my business rates bill calculated?

Your bill equals your Rateable Value multiplied by the multiplier. Properties with RV up to £50,999 use the small business multiplier (49.9p for 2025/26). Properties with RV of £51,000+ use the standard multiplier (55.5p). Reliefs such as SBRR, charity relief, and RHL relief are then deducted.

Q: What is Small Business Rate Relief (SBRR)?

SBRR provides relief for businesses with a single property. If your rateable value is £12,000 or less, you get 100% relief and pay no business rates. Between £12,001 and £15,000, relief is tapered from 100% to 0%. You must occupy the property and it must be your only business premises.

Q: What about the 2026 revaluation?

The 2026 revaluation updates all rateable values based on rental values as at 1 April 2024. If your RV increases, transitional relief caps how fast your bill can rise, phased over 3 years. From April 2026, the multiplier system changes from 2 multipliers to 5, with new lower rates for Retail, Hospitality and Leisure properties.

Calculate your business rates for 2025/26. Check Small Business Rate Relief, charity and rural relief, Retail Hospitality & Leisure discount, and estimate how the 2026 revaluation affects your bill.

Calculate your business rates bill for 2025/26

Rateable value (RV)

Find yours on the VOA website or your rates bill

Property type

Affects which reliefs may apply

This is my only business property

Required for Small Business Rate Relief

Try another scenario

How to Use This Calculator

My Business Rates tab

Enter your property's rateable value (RV) — you can find this on your rates bill or the VOA website. Select your property type and whether this is your only business property. The calculator applies the correct multiplier (small business 49.9p or standard 55.5p) and automatically checks Small Business Rate Relief eligibility.

Relief Check tab

Enter your RV and toggle the reliefs that may apply: SBRR (sole property), charity relief (80% mandatory), rural rate relief (sole village shops/pubs), and Retail, Hospitality & Leisure relief (40% in 2025/26). See every applicable relief with amounts and your net bill after all deductions.

Revaluation Impact tab

Enter your current rateable value and your estimated new RV after the 2026 revaluation (based on April 2024 rental values). See your current bill versus the projected new bill, the annual and monthly difference, and information about transitional relief that caps large increases.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a business partner, accountant, or save it for later.

The Formula

Business rates are calculated using a simple formula set by the government:

Annual Business Rates = Rateable Value × Multiplier

For 2025/26:
Standard multiplier = 55.5p (0.555) — applies to RV of £51,000+
Small business multiplier = 49.9p (0.499) — applies to RV up to £50,999

Small Business Rate Relief (SBRR):
RV ≤ £12,000 = 100% relief (bill is £0)
£12,001 ≤ RV ≤ £15,000 = tapered relief
Taper formula: Relief % = 100% − ((RV − £12,000) / £3,000) × 100%

RHL Relief = Remaining bill after other reliefs × 40% (max £110,000)

The rateable value is set by the Valuation Office Agency (VOA) based on the estimated open market rental value of your property at a specific valuation date. The current rating list (2023) uses rental values as at 1 April 2021. The 2026 revaluation will use rental values as at 1 April 2024.

The multiplier (also called the "poundage") is the number of pence per pound of rateable value. It is set annually by the government and adjusted for inflation.

Example

Maria — Small retail shop owner, Leeds

Maria runs a small independent clothing shop. Her property has a rateable value of £14,000. It is her only business property.

My Business Rates tab

Rateable value£14,000

Property typeRetail / Shop

Sole propertyYes

Multiplier (small business)49.9p

Gross rates (£14,000 × 0.499)£6,986

SBRR taper calculation33% relief

SBRR amount-£2,305

Net annual bill£4,681

Monthly amount£390

Maria's RV of £14,000 is in the SBRR taper band (£12,001–£15,000). The taper gives her 33% relief: (£15,000 − £14,000) / £3,000 = 33.3%. Without SBRR, her bill would be £6,986. With the taper, she pays £4,681 per year.

Relief Check tab

Maria also checks if RHL relief applies. As a retail shop, she toggles "Retail, hospitality or leisure property" on.

Gross rates£6,986

SBRR (33%)-£2,305

Remaining bill£4,681

RHL relief (40% of remaining)-£1,872

Net bill with both reliefs£2,809

By claiming both SBRR and RHL relief, Maria's bill drops from £6,986 to just £2,809 per year — a saving of £4,177.

FAQ

What are business rates? ▼

Business rates (formally "non-domestic rates") are a tax on properties used for business purposes in England and Wales. They are set by central government and collected by local councils. Every non-domestic property has a rateable value (RV) set by the Valuation Office Agency (VOA), and your bill is calculated by multiplying the RV by the applicable multiplier. Business rates fund local services alongside council tax.

How is my business rates bill calculated? ▼

Your bill is calculated as: Rateable Value × Multiplier. For 2025/26, the small business multiplier is 49.9p (for properties with RV up to £50,999) and the standard multiplier is 55.5p (for RV of £51,000 and above). After calculating the gross bill, any applicable reliefs (SBRR, charity, rural, RHL) are deducted. Your council will send you a bill each year showing the breakdown.

What is Small Business Rate Relief (SBRR)? ▼

SBRR is available if your property has a rateable value of £15,000 or less and it is your only business property. If the RV is £12,000 or less, you get 100% relief (you pay nothing). Between £12,001 and £15,000, relief is tapered — it reduces proportionally from 100% to 0%. Even if you don’t qualify for SBRR, properties with RV up to £50,999 still benefit from the lower small business multiplier (49.9p vs 55.5p). If you take on a second property, you keep your SBRR for up to 36 months under the extended grace period.

What about the 2026 revaluation? ▼

A revaluation updates every property’s rateable value to reflect current market rents. The 2026 revaluation (effective 1 April 2026) uses rental values as at 1 April 2024. The VOA published draft rateable values in late 2025. If your RV increases, your bill goes up — but transitional relief caps how fast it can rise (phased over 3 years). If your RV decreases, your bill falls immediately. From April 2026, the multiplier system also changes from 2 multipliers to 5, with new lower rates for Retail, Hospitality & Leisure properties.

Can I appeal my rateable value? ▼

Yes. You can challenge your rateable value through the VOA’s Check, Challenge, Appeal process. First, check your property details are correct on the VOA website. If you believe the RV is wrong, you can submit a challenge with evidence (comparable rental values, property changes, etc.). If the challenge is unsuccessful, you can make a formal appeal to the Valuation Tribunal. The process is free but can take several months. Many businesses use specialist rating surveyors to help with appeals.

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