The Edinburgh visitor levy explained for short-let hosts

Since 24 July 2026, every paid overnight stay in Edinburgh carries a 5% visitor levy. Short-let hosts must add it to the price, collect it from guests and pay it to the council. Get the sums wrong and the shortfall comes out of your pocket.

Here is how the levy works and what it means for your bookings.

What is the Edinburgh visitor levy?

The council's own summary sets out the basics:

• It is 5% of the cost of the paid overnight accommodation.
• It is worked out before VAT.
• It does not apply to extras such as parking, meals, drinks or transport.
• It only applies to the first 5 nights of a stay.
• It is the same rate every day of the year, with no end date.

It covers the whole City of Edinburgh Council area.

Which stays does the levy cover?

The levy applies to stays from 24 July 2026 onwards. Stays on or after that date that were booked and paid for, in part or in full, before 1 October 2025 are not covered.

It applies to all paid overnight accommodation, including self-catering accommodation and short-term lets. That includes hosts whose turnover is below the VAT threshold, so a spare room let during the Fringe is covered too.

How do you work out the levy?

The five-night cap is what makes the maths interesting. Here are two examples, with a nightly price of £150 before VAT:

• A 3-night stay costs £450 for the accommodation. The levy is 5% of £450, which is £22.50.
• An 8-night stay costs £1,200. The levy only applies to the first 5 nights, so it is 5% of £750, which is £37.50.

Cleaning fees and other extras need care. The levy is on the accommodation, not on extras, so keep your charges clearly separated in your booking records.

How do you collect and pay the levy?

You collect the levy from your guests and pay it to the council. Returns are made through a national online platform, and the council says the first returns were due in October 2026.

There is a small benefit. In Edinburgh, 2% of the levy you collect is reimbursed to you, to cover costs such as card charges and changes to your systems.

Which guests are exempt?

Some guests do not have to pay the levy. The council publishes a page on exemptions for visitors. Read it, so you can answer a guest who asks, and keep a record of any exempt stay and the reason for it.

What does the levy mean for your pricing?

A 5% charge on the first five nights changes how different stays compare:

• Short stays carry the full 5%. A weekend guest pays the levy on every night.
• Long stays carry much less. On a 25-night Fringe booking, the levy covers only 5 nights, so it adds around 1% to the total.
• Show the full price. Guestwise shows the levy within the price guests see, so nobody is surprised at checkout.

This makes longer festival stays even more attractive, for guests and for you. Our Edinburgh festivals calendar for hosts shows when those stays happen.

What mistakes should you avoid?

• Charging the levy on every night of a long stay. It stops after the first 5 nights.
• Charging it on extras. Parking, meals and similar extras are outside the levy, so keep them separate.
• Treating every older booking as exempt. Only stays booked and paid for, in part or in full, before 1 October 2025 are outside the levy. Check the payment date as well as the booking date.
• Hiding the levy until checkout. Guests who feel caught out leave poor reviews.

Which records should you keep?

For every booking, keep the booking date, payment date, stay dates, accommodation price before VAT, any extras and the levy charged. The booking and payment dates matter because of the 1 October 2025 cut-off. The accommodation price matters because the levy is only on accommodation. If a guest is exempt, record why.

What other costs sit alongside the levy?

The levy sits alongside your licence fee, council tax or non-domestic rates, and income tax. We bring them together in council tax, rates and running costs for Edinburgh short lets. You also need a valid licence before you take any booking. See short-term let licence in Edinburgh.

What does this mean for you?

• Add 5% to the accommodation price, before VAT, for the first 5 nights of every paid stay.
• Pay the council through the national platform, and keep the 2% reimbursement.
• Price longer stays attractively, because the levy weighs less on them.

Let us run the levy for you

Our Airbnb management in Edinburgh builds the levy into your pricing, collects it and handles the returns. Get your free valuation to see what your home could earn after every charge.

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This is general information, not legal or tax advice. It is our own interpretation of the rules and figures as they stand on the date shown above, and they can change. Speak to a qualified solicitor or accountant before you act on anything here.