Edinburgh to tax tourists for overnight stays

Scotland’s capital has decided to introduce the country’s first-ever tourist tax, adding a five per cent surcharge to overnight stays.

The landmark move, which was made during a virtual council meeting amid Storm Eowyn’s red weather warning last week, will see visitors contributing to the city of Edinburgh from July 24, 2026.

The levy is capped at seven nights is projected to generate up to £50 million annually for the city.

Edinburgh, a hilly city with a medieval Old Town and Georgian New Town, is known for landmarks such as Edinburgh Castle, home to Scotland’s crown jewels and the Stone of Destiny, used in the coronation of Scottish rulers.

The new tourist tax will reportedly be reinvested into Edinburgh’s infrastructure and services. The tax will apply to all forms of overnight accommodation, including hotels and bed and breakfasts.

Both tourists and those visiting for work or other reasons will be subject to the levy – including Scottish residents.

The implementation includes a nine-month transition period. Bookings made after October 1, 2025, will be liable for the new charge.

The levy follows legislation passed by the Scottish Parliament last year, empowering local councils to introduce such initiatives.

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