Since 24 July 2026, every paid overnight stay in the City of Edinburgh has carried a 5% visitor levy. It's the first scheme of its kind in Scotland, and it covers hotels, B&Bs, holiday lets and short-term rentals alike. For many of the city's short-let owners, the hard part starts now: the first quarterly return and payment are due by 31 October 2026.
Most owners already know the levy exists. Fewer have checked whether their bookings, records and pricing are set up correctly, and that's where problems tend to start.
How the levy works
The levy is 5% of the accommodation charge, calculated before VAT. It applies to the first five consecutive nights of a stay, so a guest booking a week in a New Town flat pays the levy on five nights, not seven.
The timing rule catches some owners out. The levy applies to bookings made on or after 1 October 2025, whatever the stay date. A reservation that was fully or partly paid before then is exempt, even if the guest arrives after 24 July 2026. Owners who took early bookings for this summer's festival season will have a mix of levied and exempt stays in the same quarter, and they need to record each one correctly.
Who is responsible
The accommodation provider is legally responsible for the levy, not the booking platform. Booking sites may show or collect the charge, but unless a platform has a formal agreement with the Council, the owner or operator is responsible for registering, filing returns, and paying.
Owners can choose when to collect the levy from guests: at booking, at check-in or at checkout. Whichever they choose, the total price shown to guests must include it.
Some guests are exempt, including people receiving certain disability benefits and people placed in accommodation because of homelessness, domestic abuse or refugee status. These guests pay at the point of stay and then claim a refund from the Council, so owners don't need to verify eligibility themselves.
A practical checklist before 31 October
Confirm you're registered on the City of Edinburgh Council's visitor levy portal.
Separate your bookings into those made before 1 October 2025 (exempt) and those made after (levied).
Check that the five-night cap has been applied to longer stays, so guests haven't been overcharged.
Reconcile platform payouts. Make sure the levy amount shown on Airbnb or Booking.com matches what you're declaring.
Keep records for five years. The Council can inspect them, and penalties apply under the Visitor Levy (Scotland) Act 2024.
Review your nightly rates. A 5% increase on the guest's total can affect where your listing ranks against competitors on price filters.
Rules are still changing
The framework is also evolving. In May 2026, the Visitor Levy (Amendment) (Scotland) Act received Royal Assent, giving councils the option of fixed charges per room, property or area, as well as charges that vary by location or season. Edinburgh's current scheme is percentage-based, but owners should expect the details to keep changing in the years ahead.
All of this sits on top of the existing short-term let rules. Most short lets in the city still need a licence from the City of Edinburgh Council, and whole properties that aren't the owner's main home may also need planning permission. The levy adds a new administrative layer, but it doesn't replace these.
What it means for owners
"Most owners we speak to aren't against the levy. They're worried about getting the paperwork wrong," said Johan Hajji, co-founder of EdinBnB, an Edinburgh-based Airbnb management company.
"The first return is where small mistakes show up: an exempt booking charged by accident, or a five-night cap that wasn't applied. It's worth an hour now to check everything before 31 October."
EdinBnB manages short-let properties across central Edinburgh, including the Old Town, New Town, Stockbridge and the West End. It handles listings, pricing, guest communication, cleaning and licensing compliance for owners.
Owners who are unsure how the levy applies to their bookings should check the City of Edinburgh Council's official guidance or speak to their property manager before the deadline.
