Edinburgh has become the first city in the United Kingdom to introduce a tourist tax, effective from Friday. The new Visitor Levy applies to all forms of paid overnight accommodation in the city, including hotels, B&Bs, hostels, holiday rentals, and Airbnbs.
Under the new scheme, visitors are required to pay an additional 5% levy on the cost of their accommodation. The charge is calculated based on the accommodation cost and applies to a maximum of five consecutive nights. The 5% rate remains fixed throughout the year, regardless of the season or date of travel.
The Visitor Levy was formally approved in January 2025 and applies to all advance bookings made on or after October 1, 2025, for stays commencing on or after July 24. Accommodation providers will be responsible for collecting the charge and remitting it to the city council.
“Anyone who is staying in paid, overnight accommodation in Edinburgh needs to pay the levy. This includes tourists, people staying for work or visiting the city for other reasons. UK and Scottish residents are included,” the City of Edinburgh Council confirmed.
The visitor levy applies solely to the portion of the bill covering overnight accommodation. Charges for meals, beverages, transport, or other services added to the room will not increase the levy.
The new charge has been introduced ahead of Edinburgh’s renowned summer festival season in August, which features the Edinburgh International Festival, Festival Fringe, Art Festival, Book Festival, Film Festival, and the Royal Military Tattoo. Data submitted to the local authority by the Edinburgh Tourism Action Group (ETAG) indicated that hotel occupancy in central Edinburgh reached 90.6% in August 2025, while occupancy in surrounding areas was slightly higher at 91.1%.
The Council estimates approximately 3.85 million attendances at events throughout the month. It further projects that the levy will generate between £45 million and £50 million by the 2028/29 financial year.
Under the legislation, all revenue raised must be reinvested into local services and facilities that are substantially used by both business and leisure visitors.
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