From today, 24 July 2026, Edinburgh has become the first UK city to introduce a tourist tax, charging visitors staying overnight in paid accommodation. The levy is a 5% fee on top of booking costs, capped at five consecutive nights, meaning longer stays won't incur additional daily charges beyond that limit.
For example, a hotel room costing £100 per night for five nights would see the bill increase from £500 to £525, while luxury accommodation like Gleneagles Townhouse (£656 per night) would face an extra £164 levy on top of their original cost. It's worth noting that this charge only applies to the accommodation itself and doesn't include meals, drinks, or other services billed to the room.
The City of Edinburgh Council expects the new tax to generate up to £50 million annually, with funds earmarked for reinvestment into the city. This includes a £132,000 contribution towards Edinburgh’s Festival Carnival and Mardi Gras, funding for ten festival ambassadors, and a dedicated policing unit in the city centre. Further planned investments include street cleaning, Hunter Square improvements, public toilet upgrades, and enhancements to parks and green spaces.
The council is also committed to investing in arts projects, with £5 million towards restoring Leith Theatre and £3 million for transforming the Old Royal High School into a national music centre. The levy applies to a broad range of accommodation types, from hotels and hostels to campsites and holiday lets, ensuring a wide base for revenue generation.
Council Leader Jane Meagher hailed this development as a milestone in years of work, allowing Edinburgh to invest in its unique appeal while addressing the strain on public services and infrastructure caused by its popularity. The levy aims to help mitigate these effects, enhance public spaces, and support new projects across the city, making Edinburgh a cleaner, greener, and more welcoming destination for visitors and residents alike.