A business rates calculator estimates a commercial property’s annual rates bill using its rateable value, the applicable business rates multiplier, and any eligible reliefs or discounts. It also highlights that England’s rules changed for 2026/27, with five multipliers and new rateable values following the 2026 revaluation.
Business Rates Calculator for England: The Basic Formula
For most properties in England, you can estimate annual business rates using:
Rateable value × applicable multiplier = basic annual business rates
You then subtract any reliefs, exemptions or transitional reductions for which the property qualifies.
For example, suppose an office has:
- Rateable value: £40,000
- Applicable 2026/27 multiplier: 43.2p, or 0.432
The basic calculation is:
£40,000 × 0.432 = £17,280
The estimated annual charge before reliefs would therefore be £17,280.
Business rates are not calculated directly from the rent you currently pay, the purchase price of the property or your company’s turnover. The starting point is the property’s official rateable value, which is set by the Valuation Office.
Which Business Rates Multiplier Applies in 2026/27?
England moved to a five-multiplier system from 1 April 2026. The multiplier you use depends primarily on the property’s rateable value and, in some cases, its use.
| Property type and rateable value | 2026/27 multiplier | Decimal for calculation |
| Qualifying retail, hospitality or leisure, below £51,000 | 38.2p | 0.382 |
| Other properties below £51,000 | 43.2p | 0.432 |
| Qualifying retail, hospitality or leisure, £51,000 to £499,999 | 43.0p | 0.430 |
| Other properties, £51,000 to £499,999 | 48.0p | 0.480 |
| Properties with RV of £500,000 or more | 50.8p | 0.508 |
The two lower retail, hospitality and leisure multipliers apply to qualifying properties with rateable values below £500,000. Examples can include qualifying shops, restaurants, cafés, pubs, cinemas, gyms, hotels and other eligible premises, although the property’s actual use must satisfy the relevant rules.
Properties with rateable values of £500,000 or more use the high-value multiplier of 50.8p, regardless of whether the property operates in the retail, hospitality or leisure sector.
How to Calculate Your Business Rates Step by Step
1. Find Your Property’s Rateable Value
Start by checking the current rateable value of the commercial property.
The Valuation Office Agency periodically reassesses non-domestic properties. The latest revaluation for England and Wales took effect on 1 April 2026 and is based on estimated open-market rental values as at 1 April 2024.
Do not assume that the rateable value is the same as:
- your current annual rent
- the property’s market sale price
- your mortgage payment
- your annual turnover
- the amount you paid in business rates last year
A revaluation can change the rateable value even when nothing about the physical property has changed.
2. Select the Correct Multiplier
Once you know the rateable value, identify the multiplier that applies.
For a non-retail property in England with an RV of £35,000, for example, the 2026/27 small business multiplier is 0.432.
For a qualifying café with the same £35,000 RV, the lower retail, hospitality and leisure multiplier would be 0.382.
The difference matters:
Office:
£35,000 × 0.432 = £15,120
Qualifying café:
£35,000 × 0.382 = £13,370
Before reliefs, the café’s calculation is £1,750 lower because it qualifies for the lower RHL multiplier.
3. Calculate the Basic Liability
Multiply the rateable value by the applicable multiplier.
For example:
Rateable value: £75,000
Standard multiplier: 0.480
£75,000 × 0.480 = £36,000
The property’s basic annual rates liability is £36,000 before any relevant reliefs or adjustments.
4. Deduct Business Rates Relief
A basic calculator does not necessarily tell you the amount that will appear on your final bill.
Reliefs can substantially reduce liability, particularly for smaller businesses. Possible reductions include Small Business Rate Relief, transitional relief, charitable relief and other property-specific or local schemes. Your local authority ultimately applies qualifying reliefs to your bill.
Small Business Rate Relief Calculator
Small Business Rate Relief can reduce the bill for eligible businesses occupying smaller properties in England.
Generally, you may qualify where:
- the property’s rateable value is below £15,000, and
- the business uses only one property, subject to specific exceptions for businesses occupying additional properties.
If the property has an RV of £12,000 or less, an eligible business can receive 100% Small Business Rate Relief, meaning no business rates are payable on that property.
Between £12,001 and £15,000, the relief reduces gradually from 100% to zero.
Example: £13,500 Rateable Value
An eligible property with a £13,500 rateable value receives 50% Small Business Rate Relief.
Using the 2026/27 small business multiplier:
£13,500 × 0.432 = £5,832
50% relief:
£5,832 × 50% = £2,916 relief
Estimated bill:
£5,832 − £2,916 = £2,916
GOV.UK confirms that a property with an RV of £13,500 receives 50% relief where the eligibility rules are satisfied.
Example: £12,000 Rateable Value
Basic liability:
£12,000 × 0.432 = £5,184
If the property qualifies for 100% Small Business Rate Relief:
Estimated amount payable: £0
This illustrates why simply multiplying the rateable value by the multiplier can significantly overstate the final bill for an eligible small business.
Business Rates Calculation Examples for 2026/27
The following examples show how property value and business type change the basic calculation.
| Example property | Rateable value | Multiplier | Basic annual rates before relief |
| Small office | £25,000 | 43.2p | £10,800 |
| Qualifying small shop | £25,000 | 38.2p | £9,550 |
| Dental surgery | £60,000 | 48.0p | £28,800 |
| Qualifying restaurant | £60,000 | 43.0p | £25,800 |
| Warehouse | £200,000 | 48.0p | £96,000 |
| Large commercial property | £600,000 | 50.8p | £304,800 |
These figures represent the basic liability only. Reliefs, transitional arrangements and other adjustments can change the final amount.
The £60,000 dental surgery example is consistent with the government’s own 2026/27 calculation, which applies the 48p standard multiplier to produce an estimated basic bill of £28,800.
How the 2026 Revaluation Affects Your Calculation
A major reason businesses should recalculate their rates for 2026/27 is the business rates revaluation that took effect on 1 April 2026.
The Valuation Office updates rateable values every three years. The 2026 list reflects rental values as at 1 April 2024.
A higher rateable value does not automatically mean your bill will increase by the same percentage. The government also reset the multipliers as part of the 2026 changes.
For example, if a property’s rateable value rises by 20%, it would be misleading simply to assume that the business rates bill will also rise by 20%. The correct approach is to:
- use the new 2026 rateable value;
- apply the relevant 2026/27 multiplier;
- determine whether transitional relief applies;
- deduct any other applicable reliefs.
The government introduced transitional measures to phase in some increases caused by revaluation rather than requiring affected ratepayers to absorb the full increase immediately.
Why Your Council Bill May Differ From an Online Business Rates Calculator
A calculator is best treated as an estimate rather than a replacement for your official rates bill.
Several factors can cause the amount charged by the local authority to differ from a simple rateable-value calculation.
Transitional Relief
Businesses facing certain increases following the 2026 revaluation may have their increase phased in.
This means the amount payable can be lower than the headline rateable value multiplied by the current multiplier.
Supporting Small Business Relief
Businesses losing some or all of their previous Small Business Rate Relief, Rural Rate Relief or qualifying retail, hospitality and leisure support may receive additional protection under the Supporting Small Business scheme.
Charitable and Other Reliefs
Charities and certain other organisations may qualify for separate business rates relief. Different rules can also apply to empty properties, rural premises and properties used for particular purposes.
Changes During the Financial Year
The bill can also change if:
- you move into or leave the property partway through the year;
- the property becomes empty;
- its use changes;
- its physical layout changes;
- the rateable value is corrected;
- a relief begins or ends during the year.
A calculator therefore gives the most useful result when it uses the correct dates as well as the correct rateable value.
What If You Think Your Rateable Value Is Wrong?
If your business rates estimate seems unexpectedly high, check the rateable value before assuming the council has calculated the multiplier incorrectly.
The Valuation Office determines rateable values in England and Wales. The local council uses that valuation when calculating the bill.
You can review the property’s valuation and, where appropriate, report property changes or challenge the valuation.
Possible reasons for reviewing an assessment include incorrect property details or significant changes affecting the premises.
However, the fact that a business rates bill is higher than expected does not by itself establish that the rateable value is incorrect.
Business Rates Calculators in Scotland, Wales and Northern Ireland
Business rates are devolved, so you should not use England’s multipliers for a property elsewhere in the UK.
Scotland
Scotland calls business rates non-domestic rates and uses a poundage system.
For 2026/27:
- properties with an RV up to and including £51,000 use a 48.1p Basic Property Rate;
- RVs from £51,001 to £100,000 use a 53.5p Intermediate Property Rate;
- RVs above £100,000 use a 54.8p Higher Property Rate.
Scottish relief schemes can then reduce the resulting liability.
Wales
Wales introduced three multipliers from 1 April 2026:
- 0.350 retail multiplier for qualifying smaller and medium-sized retail properties below £51,000 RV;
- 0.502 standard multiplier for most other properties;
- 0.515 higher multiplier for properties with rateable values above £100,000.
The Welsh Government also introduced transitional arrangements following the 2026 revaluation.
Northern Ireland
Northern Ireland operates a separate non-domestic rating system, so an England, Scotland or Wales calculator should not be used to estimate a Northern Irish property’s rates.
For the most reliable estimate, use the relevant Northern Ireland rating information and current local and regional rates applicable to the property.
Information You Need Before Using a Business Rates Calculator
Gather these details before estimating your bill:
- Property postcode and address
- Current rateable value
- Financial year being calculated
- Property use, particularly whether it qualifies as retail, hospitality or leisure
- Number of business properties occupied
- Potential eligibility for Small Business Rate Relief
- Other reliefs or exemptions
- Dates of occupation, if you moved during the year
- Any transitional relief shown on the official bill
The rateable value and financial year are especially important. Using a 2025 rateable value or multiplier to estimate a 2026/27 bill can produce a materially incorrect result.
Common Business Rates Calculator Mistakes
Using the Property’s Rent Instead of Its Rateable Value
Rateable value is related to rental value, but it is a separate official assessment. Enter the rateable value shown in the relevant rating list, not simply the rent on your lease.
Using Last Year’s Multiplier
The multiplier can change between financial years. This is particularly important in 2026/27 because England moved from the previous two-multiplier structure to five multiplier categories.
Forgetting Small Business Rate Relief
For an eligible property with an RV of £12,000 or less, failing to account for 100% relief could turn an actual £0 liability into an apparent bill of thousands of pounds.
Assuming Every Shop Gets the Lower Multiplier
The retail, hospitality and leisure multipliers have qualification rules. Property use matters, and not every business that considers itself part of one of these industries will necessarily meet the statutory definition.
Treating the Estimate as the Final Bill
The local authority’s calculation may include reliefs, transitional arrangements, occupation dates or other adjustments that a simple online tool does not know about.
FAQ’s
Multiply your property’s rateable value by the applicable multiplier for the financial year, then deduct any reliefs or adjustments. For example, a £30,000 non-RHL property in England using the 2026/27 small business multiplier would have a basic liability of £30,000 × 0.432 = £12,960 before relief.
In England, the 2026/27 multipliers range from 38.2p for qualifying small retail, hospitality and leisure properties to 50.8p for properties with rateable values of £500,000 or more. The appropriate rate depends on property value and use.
An eligible business occupying one property with a rateable value of £12,000 or less can generally receive 100% Small Business Rate Relief in England, reducing the bill to zero. Eligibility rules apply, particularly if the business occupies additional properties.
No. The rateable value is an assessment used for business rates. The 2026 rating list in England and Wales is based on estimated annual open-market rental values at a specified valuation date, which was 1 April 2024 for the revaluation taking effect on 1 April 2026. Your actual contractual rent may be different.
Yes. Revaluation, changes to multipliers, relief schemes and transitional arrangements can alter the bill even where the premises themselves remain unchanged.
No. England, Scotland, Wales and Northern Ireland operate different business rates or non-domestic rates systems. Always use the rules and rates for the country in which the property is located.
Calculate Your Business Rates Using the Right Figures
A useful business rates calculation starts with the current rateable value, not the property’s rent or last year’s bill. For an English property in 2026/27, multiply that value by the relevant multiplier of 38.2p, 43.0p, 43.2p, 48.0p or 50.8p, depending on the property’s value and use, then account for any reliefs.
Small Business Rate Relief, transitional arrangements and other discounts can make a substantial difference, so the raw calculation should be treated as a starting point rather than the final amount due.
For the most accurate figure, compare your estimate with the property’s current valuation and the bill issued by your local authority.
