Council Tax costs have risen by more than a quarter above inflation across Scotland over the past three decades, according to new analysis. The average amount of Council Tax per dwelling across Scotland has increased from £589 in 1996/97 to £1,529 in 2026/27.
However, £589 in 1996/97 would be worth an estimated £1,212 in 2026/27 prices after inflation is taken into account. This means the average amount of Council Tax paid per dwelling is now around £317 higher in real terms, representing an estimated increase of 26.2 per cent above inflation.
There are significant differences across the country, with real-terms increases ranging from just over seven per cent to almost 82 per cent depending on the local authority.
Research method and data source
The research, from landlord insurance experts Alan Boswell Group, analysed Scottish Government data for all 32 local authorities. Figures from 1996/97 were converted into estimated 2026/27 prices using the UK Consumer Prices Index (CPI) and the Office for Budget Responsibility's latest 2026/27 inflation forecast.
Areas with the biggest Council Tax increases
Shetland Islands recorded the largest percentage increase in the analysis. Average Council Tax per dwelling has risen from £347 in 1996/97 to £1,299 in 2026/27. After accounting for inflation, the original £347 would be equivalent to approximately £714 in estimated 2026/27 prices. This leaves average council tax around £585 higher in real terms - an increase of 81.98 per cent.
Orkney Islands follows closely with an estimated real-terms increase of 81.30 per cent. Its average has risen from £366 to £1,365. The original amount is equivalent to approximately £753 in today's prices, leaving the current average £612 higher in real terms.
The Scottish Borders ranks third with an estimated increase of 62.15 per cent, followed by Aberdeenshire at 59.52 per cent and Falkirk at 51.74 per cent. Aberdeenshire recorded the largest real-terms cash increase anywhere in Scotland. Its average Council Tax per dwelling has risen from an inflation-adjusted £1,125 to £1,795 - a difference of £670.
Moray, Midlothian, Stirling, East Lothian and East Renfrewshire complete the ten areas with the largest estimated percentage increases.
Council Tax increases across all 32 areas in Scotland
Here are the estimated real-terms percentage increases in average council tax per dwelling between 1996/97 and 2026/27:
- Shetland Islands - 81.98%
- Orkney Islands - 81.30%
- Scottish Borders - 62.15%
- Aberdeenshire - 59.52%
- Falkirk - 51.74%
- Moray - 46.22%
- Midlothian - 43.91%
- Stirling - 43.51%
- East Lothian - 43.09%
- East Renfrewshire - 41.98%
- East Dunbartonshire - 39.36%
- Aberdeen City - 38.74%
- Na h-Eileanan Siar - 36.07%
- Dumfries and Galloway - 35.84%
- Argyll and Bute - 34.54%
- West Lothian - 33.64%
- Perth and Kinross - 32.70%
- North Ayrshire - 32.21%
- Highland - 31.57%
- Clackmannanshire - 30.48%
- East Ayrshire - 29.06%
- Angus - 26.23%
- Renfrewshire - 23.60%
- Fife - 23.35%
- South Ayrshire - 21.57%
- Inverclyde - 16.91%
- Dundee City - 15.02%
- Glasgow City - 14.24%
- South Lanarkshire - 13.40%
- North Lanarkshire - 10.36%
- City of Edinburgh - 7.46%
- West Dunbartonshire - 7.13%
Highest Council Tax does not mean biggest increase
The figures also highlight the difference between areas experiencing the biggest increases and those where the current average is highest. East Dunbartonshire has the highest average Council Tax per dwelling in Scotland in 2026/27 at £2,087. However, it ranks only 11th for its real-terms percentage increase since 1996/97. Its average of £728 three decades ago would be equivalent to approximately £1,498 in estimated 2026/27 prices, producing a real-terms increase of 39.36 per cent.
By comparison, Shetland tops the percentage ranking despite its current average of £1,299 being substantially lower.
Areas with the smallest increases
At the other end of the table, West Dunbartonshire recorded the smallest estimated real-terms increase. Its average Council Tax per dwelling was £633 in 1996/97, equivalent to approximately £1,302 in estimated 2026/27 prices. The current figure of £1,395 is therefore around £93 higher in real terms, representing an increase of 7.13 per cent.
Edinburgh recorded the second-smallest percentage rise at 7.46 per cent. The capital's £755 average in 1996/97 would be worth approximately £1,553 in estimated 2026/27 prices, compared with £1,669 in 2026/27 - a real-terms difference of £116.
North Lanarkshire recorded the third-smallest increase at 10.36 per cent, followed by South Lanarkshire at 13.40 per cent and Glasgow at 14.24 per cent.
Heath Alexander-Bew, Personal Lines Director at Alan Boswell Group, said: “What stands out from these figures is how differently council tax costs have developed across Scotland over the past three decades. There is a substantial gap between areas such as Shetland and Orkney, which have experienced the largest increases, and authorities such as Edinburgh and West Dunbartonshire at the other end of the table. It is also important to distinguish between the size of an increase and what residents actually pay today.”
He added: “For households, council tax is a significant recurring expense that has to be budgeted for alongside mortgage or rent payments, energy and other essentials. Anyone moving home should check the council tax costs for the property as part of their affordability calculations, as differences between areas can add hundreds of pounds to annual household costs.”
The figures represent average Council Tax per dwelling rather than the Band D Council Tax rate in each area. This means differences in the mix of properties and Council Tax bands within each local authority can also affect the average figure.
