Moray Council could become the first local authority to raise council tax under budget proposals which could see bills increase by almost a fifth.
The council’s ruling administration group said the increase was essential if frontline services are to be protected as it is facing an £11.9 million deficit over the next year.
Fife Council is considering tax hike while Highland Council is also understood to be examining the council-tax freeze as they prepare their budget proposals.
None of Scotland’s 32 local authorities have increased the tax since the Scottish Government introduced the freeze in 2007.
Moray Council’s 18% rise would see the annual cost for an average Band D property rise from £1,135 to £1,339.
The increase would raise £5 million next year but failure to maintain the freeze could result in a financial penalty being levied by the Scottish Government.
The proposals from the council’s independent-Conservative administration group will be put before councillors at a special meeting next month.
Council leader Stewart Cree said the local authority’s funding allocation announced last month by Finance Secretary John Swinney had put services “seriously under threat”.
“The administration group have examined all realistic options very closely but this level of financial reduction has placed an entirely new dimension on our deliberations,” he said.
On considering the increase in council tax, he added: “In so doing, we are aware that we will have penalties imposed on us by the Scottish Government and we will forfeit the £1.1 million that we are currently allocated to offset the council-tax freeze.
“However, in light of the scale of the deficit we are facing, this £1.1 million pales into insignificance when the only alternative would be further cuts to services – or even the loss of some services altogether.”
Fife Council members are also studying budget proposals, including the possibility of ending the freeze, ahead of a meeting next month.
Council leader David Ross said: “In summary, we are facing a hugely difficult financial situation, both next year and over the next three years.
“It isn’t in tablets of stone, it’s for the basis of consideration over the next few weeks and I hope we can have that debate in a reasonable and responsible manner.”
The Commission on Local Tax Reform, set up by the Scottish Government, recommended last month the current council-tax system should be scrapped and alternatives put forward to voters at the Holyrood election in May.
Highland Council’s independent-led administration is also examining whether it should end the council-tax freeze.
The council’s budget chairman, councillor Bill Fernie, said: “We’re still firming up what we’re going to do and we’ve got to speak to opposition groups as well.
“We would certainly take more confidence if a few more councils around us – for example Moray or Argyll and Bute – were like-minded.”