Business rates (also known as commercial rates) are a tax that is levied on businesses in the UK based on the value of their commercial property. Business rates are used to fund local services such as schools, hospitals, and roads and are typically set by local authorities.

The amount of business rates that a business owes is determined by the rateable value of its property, which is an estimate of the annual rent the property could reasonably be expected to fetch on the open market. The rateable value is multiplied by the business rates multiplier, which is set by the government, to determine the amount of business rates owed. Business rates are a significant cost for many businesses and are typically based on the size and location of the property. Some businesses may be eligible for relief on their business rates, such as small businesses or charities.