In January 2025, Edinburgh City Council announced it would use its powers as set out in the Visitor Levy (Scotland) Act to introduce a tax on paid overnight accommodation in Edinburgh for stays on or after 24 July 2026.
Overview
Amid much controversy and despite warnings from senior Scottish tourism figures about the detrimental impacts on tourism and local business, Edinburgh City Council unveiled the "Edinburgh Visitor Levy Scheme" in January 2025.
Tax rate
Initially, the "Edinburgh Visitor Levy Scheme" has been set at a rate of 5%, which is applicable for a maximum of 5 consecutive nights of a stay.
i.e.
For bookings of 5 nights or less, the tax applies to all nights of the stay.
For stays longer than 5 nights, the tax applies only to the first 5 nights.
The tax is chargeable on the core accommodation costs of a booking only.
'Extras' such as food/drinks or parking should not be included in the tax calculation.
Reimbursement (2%)
Accommodation providers will receive a reimbursement from Edinburgh City Council of 2% of the levy collected, which is intended to help offfset some of the direct costs which occur as a result of collecting the levy.
Effective dates
Accommodation providers must start accounting for the tax from 1st October 2025, but tax is only payable on bookings for stays that occur on or after the 24th July 2026.
Who is responsible for collecting and paying the tax?
Accommodation providers are ultimately responsible for collecting and paying the tax to Edinburgh City Council.
Types of accommodation in scope
The "Edinburgh Visitor Levy Scheme" applies to all types of overnight accommodation in Edinburgh.
Exempt guests
Unlike "Tourist tax" schemes operated in some other countries that exempt local residents, Edinburgh council have opted to tax UK and Scottish residents who rent overnight accommodation in the city. There are a few exemptions, including "asylum seekers and refugees" and "members of Gypsy or Traveller communities staying on dedicated sites". Exempted guests will be expected to first pay the tax, then reclaim it from Edinburgh Council.
Further information
Please see below, links to further information about the "Edinburgh Visitor Levy Scheme".
