At high bit rates, the reconstruction error of compressed video is generally proportional to the squared value of quantization step size, such that full quantization step size increments at high bit rates can lead to significant change in the reconstruction error and/or bit rate of the compressed video. A video codec uses fractional increments of quantization step size at high bit rates to permit a more continuous variation of quality and/or bit rate as the quantization scale changes. For high bit rate scenarios, the bit stream syntax includes an additional syntax element to specify fractional step increments (e.g., half step) of the normal quantizer scale step sizes.