Edinburgh became the first city in Scotland to introduce a tourist tax on 24 July 2026, with a 5% levy now applied to paid overnight accommodation across the city. The levy applies to business travellers and leisure tourists alike.
The charge applies to the first five consecutive nights of any stay and is set at the same rate year-round. It covers hotels, hostels, guest houses, bed and breakfasts, self-catering apartments, short-term lets including Airbnbs, campsites and even houseboats or barges permanently moored in one location.
It applies to tourists, business travellers and leisure visitors alike, including UK and Scottish residents – not just international tourists.
Applies to both leisure and business travellers
The levy is expected to raise close to £50m annually by 2028/29. Under the terms of the legislation, funds must be reinvested in local facilities and services substantially used by visitors. Planned spending includes £5m per year for affordable housing – with the intent to borrow against that to build 472 new homes between 2026/27 and 2028/29 – as well as contributions to the restoration of Leith Theatre and the conversion of the Old Royal High School into a national music centre.
A new city centre policing unit has already been launched with partial funding from the levy, comprising an inspector, three sergeants and 45 constables. Further allocations cover street cleaning, public toilets, graffiti removal and public realm improvements at sites including Cramond and Portobello.
Accommodation providers collect the charge on behalf of the council and are reimbursed 2% of funds collected to offset administrative costs.
The introduction comes ahead of Edinburgh’s festival season, with the Edinburgh International Festival and the Fringe both beginning on 7 August. Several exemptions apply – those who are homeless, fleeing domestic abuse, asylum seekers and refugees are not liable, while those receiving certain disability benefits can claim a refund after their stay.
Edinburgh is not the first UK city to introduce such a charge: Manchester brought one in during 2023, followed by Liverpool in 2025. Within Scotland, Glasgow is due to introduce a 5% levy in January 2027, Aberdeen a 7% charge from April 2027, and Stirling a 3% levy from June 2027.
Not everyone has welcomed the change. Scottish Ballet said the levy adds to an already unsustainable cost burden for touring to Edinburgh, and has reduced its December run at the city as a result. Some accommodation operators have reportedly raised concerns about inconsistent guidance on how to collect and remit the charge.
