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Edinburgh and Fife council tax increases among lowest in Scotland

News imageGetty Images A sunset warming the Edinburgh city skyline, with Calton Hill in the foregroundGetty Images
City of Edinburgh Council agreed to increase council tax and freeze pay-and-display rates

City of Edinburgh and Fife councils have confirmed they will raise council tax in the next financial year.

Edinburgh's Labour administration struck a deal with the Liberal Democrats and Conservatives at Thursday's budget meeting, bringing down a proposed 5% rise to 4%, as well as agreeing a freeze on pay-and-display rates.

Meanwhile Fife will proceed with a planned 5% rise.

This means that both regions will see among the lowest council tax increases across the country.

In Edinburgh, it a band B property - the most common in the city - will go up to £1,264.70 per year.

The cost for a band H property, currently the highest band of council tax, will increase to £3,983.82.

Fife Council highlighted that health and social care was under "significant pressure" as it allocated a total £5.5m to services from its own budget and Scottish government funding.

It will also devote £200,000 to a mental health response car so it can cover a larger area.

News imageGetty Images The Forth Rail Bridge stretching behind a row of white and brown houses at sunset.Getty Images
Fife Council said it's health and social care services were under pressure

Nine Scottish councils are expected to announce their 2026-27 budgets on Thursday, with various agreed earlier this week.

Aberdeenshire and Moray councils have so far agreed the highest rise in council tax at 10%.

Last year council tax in Edinburgh rose by 8%.

The council also committed to begin talks with Lothian Buses about returning a dividend.

Before the pandemic, the publicly-owned bus company returned excess profit to the council, but it has not done since.

Edinburgh will also be the first council in Scotland to introduce a tourist tax.

The visitor levy of 5% on overnight stays in hotels, bed and breakfasts and self-catering accommodation will take effect from 24 July 2026. About £50m is expected to be raised annually.

Scottish Water announced in January that water and sewer rates would go up from this April, with household bills to increase by 8.67%.

Earlier this year, the Scottish government also announced two new council tax bands are set to be added from April 2028 – band I for homes valued between £1m and £2m, and band J for properties above £2m.

Council tax makes up a relatively small proportion of each council's budget but it is the area where the council has the most control.