Britons to pay more for UK holidays as popular city confirms 5% tourist tax effective summer 2026

The Visitor Levy Scotland Act became law in September 2024, allowing councils in Scotland to tax paid, overnight accommodation should they choose to.

The City of Edinburgh Council stated: "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. This includes UK and Scottish residents."

The new charge affects those planning to stay in Edinburgh on or after July 24, 2026 and booking on or after October 1, 2025.

Edinburgh's levy "will be charged at the same rate every day of the year, indefinitely", so you won't pay more during busier times of the year.

Visitors will be expected to pay a five per cent payment on the cost of paid, overnight accommodation ontheir first five nights' stay.

It will be charged before VAT and will not be placed on extras like parking, meals, drinks or transport.

Accommodation included in the scheme

• Hotels
• Self-catering apartments
• Aparthotels
• Bed and Breakfasts
• Guest houses
• Hostels
• Student lets - only when let to visitors and non-Edinburgh students
• Vehicles or boats (vessels) which mostly stay in one place
• Holiday/short-term lets including residential properties with licenses for home sharing, home letting and secondary homes
• Caravan/camp sites

The tourist tax has been "designed to sustain Edinburgh's status as one of the world's greatest cultural and heritage cities".

It aims to "sustain, support and develop" the city's public services and programmes, Edinburgh's culture, heritage and events, and the city's visitor economy.

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The levy is only charged on paid overnight stays away from the visitor's home, meaning that people who might not have a permanent or safe home are not liable to pay it.

This includes people who are homeless or at risk of homelessness; people with very poor housing conditions (such as overcrowding, serious damp or disrepair); people experiencing domestic abuse or other forms of violence; or asylum seekers and refugees.

Members of Gypsy/Traveller communities staying on dedicated sites will also be exempt from paying.

Those who receive Disability Living Allowance, Disability Assistance, Attendance Allowance, Pension Age Disability Benefit or Personal Independence Payment are exempt from the levy.

The City of Edinburgh Council said: "If you receive these benefits and someone is staying with you in the same accommodation, they will also be exempt. If you are staying in different rooms in a hotel, the person who does not receive these benefits would have to pay the levy."