Edinburgh Approves Scotland’s First Tourist Tax

The 5% visitor levy, starting in July 2026, aims to raise up to £50 million annually to improve city infrastructure and services.

The City of Edinburgh Council has approved a 5% tourist tax on overnight stays, capped at seven nights, set to begin on July 24, 2026.
The levy will apply to all forms of overnight accommodation, including hotels, B&Bs, and short-term rentals, and will also affect business travelers and Scottish residents booking stays in the city.
Revenue from the tax, projected to reach £50 million annually by 2028, will be used to fund infrastructure improvements, affordable housing, and initiatives to enhance the visitor experience.
While the measure has cross-party support, some businesses and tourism groups have raised concerns about its potential impact on Edinburgh’s competitiveness as a tourist destination.
The tax is seen as a potential model for other Scottish councils, with several considering similar levies following the passage of enabling legislation last year.