Council tax, business rates and costs for York short lets

If your York short let is not anyone's main home and stays on council tax, City of York Council charges double. Since 1 April 2025, second homes in York pay a 100% premium. A busy holiday let can move to business rates instead, but only with evidence, and the council is specific about what it wants to see.

Here is how it works.

What is York's second home premium?

The council says it adds a 100% council tax premium to the bill for any property liable for council tax and classed as a second home. A second home is one that is furnished but is no one's main home. In plain terms, you pay double.

The premium does not apply to homes with an occupancy restriction that prevents use at certain times of year, long-term furnished lets to a tenant as their main home, or caravan pitches and boat moorings. If you think the premium should not apply, the council asks you to email its second homes team.

When do business rates apply instead?

The council says that if you own or manage a holiday let in York, you are running a business, and you pay either council tax or business rates. Since 1 April 2023, a holiday let must meet three conditions to be assessed for business rates:

1. Commerciality. It is let and marketed commercially, with a view to making a profit.
2. Availability. It was available for short-term commercial letting for at least 140 days in the previous 12 months, and you intend the same for the next 12 months.
3. Letting. It was actually let commercially for at least 70 days in the previous 12 months.

What evidence does York ask for?

To register a holiday let for business rates, the council asks you to email its business rates team with:

• how many nights a year the home is available to let
• the full address and the date it became available
• a link to where it is advertised online
• a contact address for you
• evidence, such as receipts for rental income, showing at least 70 days of commercial lets in the previous 12 months

The council is blunt: without this evidence, the property stays liable for council tax. Once the council asks the Valuation Office Agency to move a property, approval can take around 12 weeks.

Which is cheaper?

For most active short lets, business rates work out cheaper than double council tax, especially if the home qualifies for small business rate relief. A home let only now and then may not pass the tests and stays on council tax with the premium. Keep booking records from day one.

How is short-let income taxed?

The furnished holiday let tax regime ended on 6 April 2025. Short-let income is now taxed under the normal residential landlord rules, after allowable costs such as cleaning, repairs, insurance and management fees. Speak to an accountant about your own position.

Is a visitor levy coming to York?

In September 2026, the government announced that mayors and local leaders will be handed the power to introduce an overnight visitor levy, charged as a percentage of the cost of accommodation. A bill is still needed, and each area decides whether to use the power.

York is part of the York and North Yorkshire Combined Authority, which has an elected mayor. The House of Commons Library noted estimates of £52 million for York and North Yorkshire from a levy, while warning that early figures should be treated with caution. Nothing is in force yet, but keep booking records that separate the accommodation price from cleaning fees and extras, so you are ready if a levy arrives.

What other running costs are there?

Commercial waste. York treats holiday let rubbish as commercial waste, so you need a collection contract. See rubbish and recycling rules for York holiday lets.

Old buildings. Many York homes are old or listed, so repairs and safety work can cost more. See Airbnb rules in York.

How do the fixed costs add up?

1. Council tax with the premium, or business rates if you qualify.
2. Commercial waste collection.
3. Utilities, broadband and TV licence.
4. Insurance suitable for short stays.
5. Safety checks, cleaning and laundry.

Then set those against realistic earnings. Our York events calendar shows where the strongest dates fall.

What does this mean for you?

• A York second home on council tax pays double.
• A busy holiday let can move to business rates, but only with evidence.
• A visitor levy may come to York and North Yorkshire. Keep clean records now.

Check the numbers for your home

Our Airbnb management in York team will show you likely earnings after fees, so you can weigh them against your costs. Get your free valuation and see whether the numbers work for your home.

Get my free valuation

This is general information, not legal or tax advice. It is our own interpretation of the rules and figures as they stand on the date shown above, and they can change. Speak to a qualified solicitor or accountant before you act on anything here.