UK Tops 2026 Global Property Tax Rankings
The UK has the highest property tax burden of any major economy, according to new analysis published in global tax firm Ryan’s 2026 Annual Business Rates Review, as rising business rates bills intensify pressure on investment across the UK.
Ryan’s benchmark report finds the UK ranks first globally for property taxes as a share of gross domestic product (GDP), second for total property tax revenues, and among the highest for property taxes as a share of overall tax revenues, based on analysis of the latest available comparable international data.
Taken together, these measures provide a composite view of both the scale, intensity and fiscal reliance on property taxation, a combination on which the UK ranks more highly than any other major economy
This places the UK in a structurally more exposed position than its international peers, with property taxation acting as a core and growing source of taxation revenue.
The findings come as business rates receipts are forecasted to rise to £37.1 billion across the UK for 2026/27, up from £33.6 billion the previous year, following the revaluation of business rates in England, Wales & Scotland.
Alex Probyn, Practice Leader for Europe and Asia-Pacific Property Tax at Ryan, said: “The UK sits at the very top of global rankings for property tax. That is not a marginal difference but it reflects a system where property is taxed more heavily than in any other comparable economy.”
“The result is that business property is carrying a disproportionate share of the overall tax burden, and that is beginning to weigh heavily on investment, particularly in sectors that rely on physical assets and long-term capital.”
The analysis by Ryan highlights how property taxation has become deeply embedded within the UK’s fiscal model, limiting the scope for reform without wider tax changes and increasing the risk that businesses bear a growing share of the burden.
While revaluations are intended to redistribute liabilities rather than increase the overall tax take, Ryan’s analysis shows that receipts continue to rise due to inflation-linked increases, policy changes and the withdrawal of pandemic-era reliefs.
Probyn added: “This is not simply a question of valuation methodology. It is a structural issue. Property taxes in the UK are the highest by international standards, and the system is designed in a way that continues to increase the yield over time.”
“That creates a clear tension between the need to raise revenue and the need to support investment. That balance has to be addressed.”
The report also warns that the impact of the 2026 revaluation will be felt across multiple sectors, with sharp increases in liabilities feeding through into higher operating costs, reduced investment capacity and, ultimately, higher prices for consumers.
Ryan said the focus for businesses now shifts to managing liabilities under the new rating list, with early engagement in the Check, Challenge, Appeal process critical to ensuring tax bills are accurate.