The UK has the highest property tax burden of any major economy, according to new research from global tax firm Ryan, with rising business rates continuing to increase pressure on property owners and occupiers.
Ryan’s 2026 Annual Business Rates Review found the UK ranks first globally for property taxes as a share of GDP and second for overall property tax revenues. The report also places Britain among the highest-ranking countries for property taxes as a proportion of total tax revenues.
The analysis suggests the UK is more heavily reliant on property taxation than other major economies, with taxes linked to residential and commercial property continuing to form a significant source of government revenue.
The findings come as business rates receipts across the UK are forecast to rise to £37.1bn in 2026/27, up from £33.6bn the previous year following the latest revaluation process across England, Wales and Scotland.
The report is likely to add to ongoing concerns across the property industry over the growing tax burden facing landlords, occupiers and investors, particularly as businesses continue to contend with higher borrowing costs, operational expenses and weaker economic growth.
Ryan said the figures underline how exposed the UK economy has become to property-related taxation compared with international competitors, with the burden continuing to increase despite wider concerns over investment and affordability.
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.”
Table 1: Property Taxes as a Percentage of GDP (Top 5 Countries)
(Measure of tax burden relative to economic output)
| Rank | Country | Property Taxes (% of GDP) |
| 1 | United Kingdom | 3.7% |
| 2 | France | 3.4% |
| 2 | Canada | 3.4% |
| 4 | Luxembourg | 3.3% |
| 5 | Belgium | 3.2% |
Table 2: Total Property Tax Revenues (Top 5 Countries)
(Absolute scale of property tax receipts, USD billions)
| Rank | Country | Property Tax Revenue ($bn) |
| 1 | United States | 854.6 |
| 2 | United Kingdom | 136.2 |
| 3 | Japan | 108.4 |
| 4 | France | 107.3 |
| 5 | Canada | 75.3 |
Table 3: Property Taxes as a Percentage of Total Tax Revenue (Top 5 Countries)
(Measure of reliance within the overall tax system)
| Rank | Country | % of Total Tax Revenue |
| 1 | Korea | 11.8% |
| 2 | United States | 11.4% |
| 3 | United Kingdom | 10.9% |
| 4 | Israel | 9.8% |
| 5 | Canada | 9.6% |
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