Key facts
- Edinburgh's tourist tax, a 5% levy on paid overnight accommodation, has officially launched.
- The tax applies to hotels, B&Bs, hostels, and holiday rentals.
- The scheme is expected to generate up to £50 million annually for the city.
- Funds raised will be invested in city operations, infrastructure, culture, heritage, events, and visitor management.
- Initial investment programs funded by the levy are valued at over £90 million for the next three years.
Edinburgh has officially launched its new tourist tax, a 5% levy on all paid overnight accommodation, effective Friday, July 24, 2026. This makes Edinburgh the first city in Scotland to implement such a scheme, with the aim of generating up to £50 million (€58 million) annually. The funds are intended for investment in the city's services, infrastructure, culture, heritage, events, and visitor management.
The visitor levy was formally approved in January 2025, with councillors agreeing to charge guests at hotels, B&Bs, hostels, and holiday rentals. The 5% fee applies to all advance bookings made since October 1, 2025, for stays occurring on or after the launch date. The tax is capped at five consecutive nights and will be charged at the same rate throughout the year.
Council Leader Jane Meagher stated that the tax is necessary due to the pressure tourism places on the city's services and residents. She believes this contribution from visitors will help improve services and public spaces while managing the effects of tourism and major events.
In February 2026, councillors approved initial investment programs totaling over £90 million (€105.3 million) for the next three years. These programs are categorized under City Operations and Infrastructure; Culture, Heritage and Events; and Destination and Visitor Management. Early projects include funding for Edinburgh's Festival Carnival and Mardi Gras, the creation of a City Centre Policing Unit with Police Scotland, and investments in waste management, cleansing, patrols, and the transformation of coastal visitor attractions at Cramond foreshore and Portobello Promenade. Parks will also see increased investment in repairs, park rangers, and planting.
Julie Ashworth, Chair of the Edinburgh Visitor Levy Advisory Forum, expressed confidence that the levy will help Edinburgh remain welcoming, resilient, and successful through revitalized public spaces and improved visitor infrastructure.