Edinburgh has brought in a tourist tax - how much is it and who pays?

Tourist tax introduced in Edinburgh: How much is it and who pays? Image source, PA MediaImage caption, Thousands of people descend on Edinburgh during the festival season in AugustByJames Delaney, Andrew Picken and Aimee StantonBBC Scotland NewsPublished23 July 2026Edinburgh has become the first city in Scotland to introduce a tourist tax.The visitor levy, which comes into effect on Friday, will see those staying overnight in hotels, bed and breakfasts and self-catering accommodation, charged an additional 5% on top of their original booking cost.It is hoped the charge, which aims to raise about £50m annually, could be used to fund improvements to the capital, including new housing, cultural initiatives and a wider police presence.However, opponents claim the additional cost could put some potential visitors off.The Scottish government passed the Visitor Levy (Scotland) Bill in May 2024, granting councils power to impose a tourist tax.City of Edinburgh Council voted in favour of introducing the charge in January last year.It brought the city in line with other popular European destinations including Amsterdam, Paris and Rome in taxing visitors.How much is the tourist tax?Visitors will be charged a 5% fee on top of the cost of their accommodation booking.That will be collected by accomodation providers and passed to the city council.However, the charge is capped at five nights, so those booking for the whole month of August, for example, will not face a 5% cost on every night of their stay.A £100-per-night room for five nights, costing a total of £500, would end up as £525 with the levy applied.Booking that same room for 10 nights, at a cost of £1,000, would end up as £1,025, with the tax.The rate does not go up or down depending on the time of year.Image source, Getty ImagesImage caption, Edinburgh Castle is a big draw for touristsExemptions are applied in certain circumstances, including for those presenting as homeless and housed in emergency accommodation, those...