Edinburgh tourist tax comes into force

Edinburgh has become the first UK city to start imposing a tourist tax from today (Friday).

A 5% fee applies to the cost of all paid overnight accommodation in Scotland’s capital city, capped at five nights in a row. The levy is charged at the same rate every day of the year.

The charge is projected to raise up to £50 million a year to fund improvements to the city.

The scheme was formally agreed in January 2025 and has applied to all advance bookings made since October 1 last year for stays taking place on or after July 24.

The levy will be collected by accomodation providers and passed to the city council.

Council leader Jane Meagher said: “This is such an important moment for our city – and for our residents and visitors. It’s the result of a huge amount of work over many, many years and I am proud to be the first local authority in the UK to push ahead with a city-wide visitor levy scheme.

“We now have a unique opportunity to invest more in the things that make our city so special.

“We know that the city’s popularity comes at a cost through the pressure it puts on our services and on the people who live and work here all year round. 

“This small new contribution from overnight visitors will help improve the services and public spaces we all depend on, while better managing the effects of tourism and major events.”

She added: “The levy has also opened the door to exciting new projects right across the city - helping to make Edinburgh a cleaner, greener and more welcoming place. 

“We’ve always said this is a city-wide fund and spending decisions need to be taken with the whole city in mind – and we’re very grateful to Edinburgh’s businesses and residents for their constructive feedback and support throughout the process. 

“I’m very aware of how busy the city’s accommodation providers are at this time of year and we’re continuing to do everything we can to support them as the scheme comes into effect.

“This is a big opportunity for us all to work together and enhance Edinburgh’s position as one of the most popular visitor destinations in the world.”