Edinburgh confirms 5 per cent tourist tax

The Scottish capital, Edinburgh, has confirmed that the planned 5 per cent tourist tax will come into effect later this year. As part of a phased introduction, hotels, short-term lets, and campsites will start charging a visitor levy for overnight stays.

The levy will be payable on all stays from July next year that are booked from May 1st onwards during peak season. The charge is expected to raise around £50 million to help improve Edinburgh’s infrastructure and mitigate the impact of mass tourism. 

City officials sought a long lead-up so visitors know to pay the 5 per cent plus VAT surcharge on all stays from July 24th, 2026. Councillors are expected to vote through the scheme on Friday. 

Jane Meagher, Edinburgh council leader, said: “This is the moment we have been working towards, a once-in-a-lifetime opportunity to sustain and enhance Edinburgh’s position as one of the most beautiful, enjoyable destinations in the world.”

“The funding could provide Edinburgh with the biggest single injection of new funding this side of the millennium.”

While Manchester has a similar scheme, Edinburgh’s is the first to cover every accommodation type. It was also revised after a consultation with local businesses, residents, tourists and cultural organisations. Some enterprises and visitors opposed the proposed rate of 5%, saying it should be lower or at least fixed.

The levy will only be applied to the first five days of a stay rather than the seven days as initially planned. The change follows lobbying from the city’s festivals, who argued it penalised workers who have seasonal jobs at their events.

The council will provide guidance to the affected businesses, informing them that the fee can be collected in cash or by card.