Edinburgh to bring in tourist tax for stays from July 2026

Stays in Scotland could be set to become a little pricier from 2026 after the announcement of a five per cent tourist tax to be added to hotel bills in the country’s capital.

Edinburgh authorities confirmed the introduction of the levy, Scotland’s first such tax, saying it “will be charged at the same rate every day of the year, indefinitely, for stays from 24 July 2026 onward.” It will be payable on all overnight accommodation, whether bed-and-breakfasts, boats, camp sites, hostels, hotels, short-term rentals like Airbnb, or vehicles.

Existing bookings will be honoured, but new bookings, from 1 October 2025 onwards, for stays on and after that July launch date will need to include the tax. However, the fee only applies to the first five nights of any stay – a criterion that may help to boost the average length of time visitors remain in the Caledonian territory.

The city council explained: “The scheme is designed to sustain Edinburgh’s status as one of the world’s greatest cultural and heritage cities. It will also make sure that the impacts of a successful visitor economy are managed effectively.”

But questions are already being raised about the impact of the fee on visitors and businesses. One uncertainty is about how the charge will be applied in relation to value-added tax (VAT). Officials insist the tourist tariff should be calculated on bills before the 20% VAT is applied, but travel expert Simon Calder, writing in The Independent, has uncovered some establishments applying the five per cent calculation to the gross bill – in other words, making it more expensive for the consumer.

The Tourist Tax came into effect in Edinburgh yesterday, yet the final guidance for businesses was only published last week

I've ✍️ to the Leader of @Edinburgh_CC asking for them to provide an extension so businesses have the time to implement the necessary changes properly. pic.twitter.com/UJ9MOVBaHo

— Sue Webber MSP 💜💙 (@SueJWebber) October 2, 2025

The funds generated by the tax are ring-fenced for improvement and maintenance of facilities and services used by business and leisure visitors to Edinburgh – an initiative approved by Ronald Little, general manager of the Holyrood Marriott hotel, who told the BBC “if we want it to be a premium destination” then it’s important to keep the Scottish capital “to a good standard.”

But not everyone agrees. Some tourists and business owners have expressed fears about rising costs and their impact on people’s travel behaviour and spending. Nonetheless, there have been six years of pressure to allow regions such freedom, and the passing of the Visitor Levy (Scotland) Act finally gives councils the authority to decide whether or not to implement visitor levies. In addition to Edinburgh, both Aberdeen and Glasgow now have their own charges in the pipeline, while some more rural and remote destinations, such as Orkney and Shetland, have so far resisted calls to make visitors pay more.