Edinburgh, Scotland Announces Tourist Tax To Launch In 2026

Following the lead from several popular European cities, the Scottish government has given Edinburgh the power to introduce a visitor tax. Meanwhile, the tourist tax will be capped at seven consecutive days and is scheduled to come into effect in 2026. Read on to learn more about the new upcoming tourist tax and how much visitors will have to pay on their Scottish vacation in Edinburgh.

Edinburgh, Scotland to introduce a tourist tax in 2026

Like many popular tourist destinations in Europe, Edinburgh is set to charge a new tourist tax,  coming into effect in 2026. For those staying longer in the Scottish capital, the tourist tax will be capped at seven consecutive days.

This will be the first city in Scotland to introduce a new tourist tax after the Scottish government granted local authorities the power to introduce visitor charges. Meanwhile, the city council has approved a proposal, dubbed the “Transient Visitor Levy” and it will be introduced in 2026.

The tourism fee will be set at 5 percent of accommodation costs, and it is anticipated that the tax will raise up to £50 million ($62 million) annually and will be used to make improvements in the city’s infrastructure.

Tourism operators are concerned over the Transient Visitor Levy

While the city as a whole is set to benefit from the new tourism tax, some tourism operators are concerned that this will put travelers off visiting Edinburgh. However, in September 2024, local officials approved a proposal to charge a 5 percent tax from guests at hotels, bed and breakfasts, hostels and vacation rentals, including Airbnbs. The tax will be calculated on the cost of the room per night,

However, the tax will be capped at seven consecutive days in the city and is set to launch on July 24, 2026. In the meantime, a new report by the council’s policy and sustainability committee proposes a transition period to help tourism businesses adjust.

Due to this, tourists visiting Edinburgh will likely only be charged tax on bookings made after May 1, 2025, for stays after July 24, 2026.

Scottish Parliament passes a bill for local authorities to introduce tourism tax

Moreover, the new measure comes following a bill passed by the Scottish Parliament to allow local authorities to introduce new visitor taxes.

According to the city council, the funds received through the tax will be invested in infrastructure, destination management, affordable housing, culture, heritage and events.

Meanwhile, the new tax is expected to bring in £50 million ($62 million) annually by 2029 for the Scottish capital.

According to city council leader, Cammy Day, 35 percent of the taxes will be earmarked for the arts sector. Moreover, the tax will place Edinburgh in line with other popular tourist destinations in Europe, including Amsterdam, which levies a 12.5 percent tourist tax, and Berlin.

However, Marc Crothall, Chief Executive of the Scottish Tourism Alliance, told travel news website Skift in August 2024 that concerns are that the levy will make the city a less competitive vacation destination and could deter tourists from visiting. He said:

It remains a very contentious matter.

There are concerns around the future total price point to the customer and what impact this might have on future bookings, especially by our domestic visitors when there are already signs of decline in bookings from this market due to the UK cost of living crisis still biting.

However, Day believes the tax won’t put off tourists, told BBC Radio Scotland:

I can’t see a few pounds putting somebody off visiting the city. If you can afford to spend hundreds of pounds on a hotel room, you can afford a few pounds to support the city that you are visiting.

Scottish Highlands considers introducing a tourist tax

Meanwhile, the Highland Council is also pondering implementing a tourist tax under the new powers introduced by the Scottish Government.

Reportedly, the beautiful region with its mountains and glens, welcomes more than 6 million tourists each year, including cruise passengers and day-trippers. As with Edinburgh, the tax would be a percentage of the cost of accommodation per night.

As with the Edinburgh tax, it would be a percentage of the accommodation cost per night.