Edinburgh tourist tax to proceed with delays

Pubs with rooms in Edinburgh will have a few more months to implement the collection of levy funds from bookings, ahead of the arrival of the city's new tourist tax.

The new levy, which comes into effect on 26 July 2026, is a 5% payment on the cost paid for overnight accommodation in Edinburgh. The levy will be charged before VAT and will not be charged on venue additions like meals or drinks. It will also only be charged on the first five nights of a stay.

Following successful lobbying from the hospitality industry and UKHospitality Scotland, councillors have voted to push back the start of the visitor levy transition period to 1 October 2025, amending the original proposal of 1 May 2025. 

UKHospitality Scotland has said the decision was critical to give businesses and booking platforms an appropriate amount of time to implement new systems to collect levy funds. 

"Not only has Edinburgh’s visitor levy been confirmed, but so too has the hit to the city’s competitiveness as a leading tourist destination," says Leon Thompson, executive director of UKHospitality Scotland. "Our fundamental concern has always been that this levy will only serve to make visitors trips to Edinburgh more expensive, ultimately reducing their spending in the wider visitor economy and deterring future visits. 

"It’s now the job of the council to use these funds wisely to improve the capital’s attractiveness as a visitor destination and mitigate the impact of the levy on businesses."

The Edinburgh Reporter has said that the new levy will raise around £50m each year. The way it is then spent is largely determined by the legislation passed by the Scottish government.

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