The Scottish government said this was to “improve fairness at the top end of the system”, and the wider council tax framework will remain the same.
The government said the measure recognised that multi-million-pound households had similar bills to more modest homes, so would ensure that the “very highest value properties make a fairer contribution”.
It suggested that fewer than 1% of households would be impacted, and the new bands will be introduced on 1 April 2028.
Charlene Young, senior pensions and savings expert at AJ Bell, said: “Although this might appear tougher than the England and Wales mansion tax, it is unlikely to raise much in the way of extra revenue for Scottish councils and is more about the message and optics of moving to what the SNP views as a fairer system.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, added that the new tax would “only affect those in pricey properties, but for those who bought them at much lower prices – and now find themselves property rich and cash poor – it could make everyday life far more of a stretch”.
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Iain Murray, head of operational living at Bidwells and chair of the Association of Rental Living in Scotland, said: “The announcement of new high value council tax bands and a so-called ‘mansion tax’ sends a clear signal about where the Scottish government is looking to raise revenue, and it will be closely watched by the property sector as the detail on valuation, implementation and scope emerges.
“However, the bigger challenge in Scotland remains the housing emergency, which is fundamentally a supply issue. This Budget is light on measures that directly accelerate delivery, particularly in the rented sector where demand continues to outstrip supply in Scotland’s major cities.
He added: “The next step for Holyrood should be a focus on practical delivery measures, such as targeted support to unlock consented schemes, faster planning decisions, and infrastructure funding that increases the number of starts on site.”
The Scottish government also announced that £926m will be invested in 2026-27 to deliver affordable homes, with a target of 110,000 by 2032.
Over the next four years, £4.9bn will be invested to develop 36,000 affordable homes and other tenures, such as temporary housing.
Elsewhere, Propertymark said it was “disappointed” that no changes were made to the Land and Buildings Transaction Tax, which is applied to property or land transactions over a certain value.
The organisation said: “The current property tax regime does not encourage people to move, right-size or relocate for work, while also deterring landlords from investing in much-needed rented homes. Furthermore, the Scottish government misses out on the economic boost through increased transactions and spending in the wider economy.
“LBTT continues to act as a barrier to people moving home and to investment in the private rented sector, which can help bring down the cost of renting. The Housing Investment Task Force was clear that property taxes should be reviewed to support housing supply and economic growth, yet this has not been meaningfully addressed. bring additional levels of council tax also bring more disparity in pricing and costs across the property sector.”
It continued: “We look forward to the outcome of the current government review into LBTT, which includes exploring options for first-time buyer relief and the treatment of mixed-use transactions, non-residential leases, and the impact of the additional dwelling supplement.”
