The council said local micro businesses would be charged a lower rate and 36 community groups would take part in the event for free on Milsom Street and Guildhall.
Joshua Bevan, owner of Fat Giraffe on Milsom Street, said he is “delighted” to be returning to the market.
“The market provides an incredible boost to the local economy, enriching the community and enhancing the vitality of Bath.
“We are honored to contribute to this treasured event and look forward to the joyous atmosphere it generates each year,” he said.