Landfill Tax: increase in rates from 1 April 2026
Published 26 November 2025
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This publication is available at https://www.gov.uk/government/publications/landfill-tax-rates-for-2026-to-2027/landfill-tax-increase-in-rates-from-1-april-2026
Who is likely to be affected
Operators of landfill sites in England and Northern Ireland.
Businesses registered with HMRC for Landfill Tax.
General description of the measure
This measure sets the rates of Landfill Tax for the year 2026 to 2027.
The standard rate of tax will increase in line with Retail Prices Index (RPI) and rounded to the nearest 5 pence.
The lower tax rate will increase by the cash amount of the increase in the standard rate to £8.65 per tonne.
Policy objective
The measure helps to maintain the real terms value of the standard rate and prevents the gap between the 2 rates from growing. Increasing the lower rate will provide a stronger price signal to encourage more sustainable waste management options for inert materials.
This supports the transition to a more circular economy and the government’s environmental objectives, but with fewer business impacts than if the government had proceeded with the proposals consulted on earlier in 2025.
Background to the measure
Landfill tax rates for the year 2026 to 2027 were announced at Budget 2025.
At Budget 2025, the government also published a summary of responses to its recent consultation on reform of Landfill Tax.
Detailed proposal
Operative date
The rates for tax year 2026 to 2027 will have effect in relation to taxable disposals made, or treated as made, at relevant landfill sites and unauthorised waste sites, on or after 1 April 2026.
Current law
Section 42 of the Finance Act 1996 specifies the rates of Landfill Tax.
Proposed revisions
Legislation will be introduced in Finance Bill 2025-26 to amend section 42(1)(a) and 42(2) to provide for new rates of Landfill Tax. The rates being amended and the new rates will be:
| Material sent to landfill | Rates from 1 April 2025 | Rates from 1 April 2026 |
|---|---|---|
| Standard rated | £126.15 tonne | £130.75 tonne |
| Lower rated | £4.05 tonne | £8.65 tonne |
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| — | +35 | +60 | +85 | +110 | +130 |
These figures are set out in table 4.1 of Budget 2025 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2025.
Macroeconomic impact
This measure is not expected to have any significant macroeconomic impact.
Impact on individuals, households and families
This measure has no impacts on individuals as it only affects businesses.
Equalities impacts
This measure only affects businesses, therefore it is not anticipated that there will be disproportionate impacts on those groups sharing protected characteristics.
Administrative impact on business including civil society organisations
This measure will affect businesses who dispose of lower-rated material at landfill sites. There will be no real terms increase in the cost for businesses who dispose of standard rate material.
The measure is expected to have a negligible impact on 111 waste site operators who pay the tax to HMRC. Negligible one-off costs will include familiarisation with the change and could involve updating internal systems to reflect the new rate. There are not expected to be any continuing costs.
This measure is expected to have no impact on businesses experience of dealing with HMRC as the change to the standard rate of Landfill Tax is expected and the increase to the lower rate by the cash amount of the increase in the standard rate does not change any processes or tax administration obligations.
This measure is not expected to have any impact on civil society organisations.
Operational impact (£ million) (HMRC or other)
HMRC will not incur any operational costs implementing this change.
Other impacts
Increasing the standard rate of Landfill Tax maintains the incentive to minimise the amount of material produced and support the use of non-landfill waste management options, which may include recycling, composting and recovery.
Increasing the lower rate by the cash amount of the increase in the standard rate provides a greater price signal to increase recycling and resource efficiency. This also maintains the gap between the tax rates to prevent further diversion in rates.
Environmentally, this measure is expected to have a small impact as lower rated materials have low potential for greenhouse gas emissions and are low polluting in the landfill environment. There may be small beneficial environmental impacts arising from increased recycling and reuse leading to reduced production and extraction of materials.
Other impacts have been considered and none have been identified.
Monitoring and evaluation
This measure will be monitored through receipts and tonnage information collected from tax returns.
We will continue to work with Defra and the Environment Agency on monitoring and evaluation, given their roles and responsibilities in relation to waste policy and regulation.
Further advice
If you have any questions about this change, contact Mark Riley on Telephone 03000 510729 or email mark.riley@hmrc.gov.uk.