Planning a trip to London, Manchester, or other English cities in 2026? Your accommodation costs may be about to increase. The UK government has announced plans to give local mayors across England the power to introduce a tourist tax on overnight stays—a move that could fundamentally change how much you pay to visit Britain’s most beloved destinations.
This comprehensive guide explains everything travelers need to know about the proposed UK visitor levy, including which cities might implement it, how much it could cost, when it takes effect, and how it compares to tourist taxes in other major destinations worldwide.
What Is the UK Tourist Tax?
The UK tourist tax, officially called a “visitor levy,” is a proposed charge on overnight accommodation stays in England. Under the new framework announced in November 2025, local mayors and city leaders would gain the authority to implement a modest fee on all types of paid overnight accommodation within their jurisdictions.
The levy would apply to hotels, holiday rentals, bed and breakfasts, and guesthouses, essentially covering any paid accommodation where visitors spend the night. The exact amount each city charges would be determined locally, giving mayors flexibility to set rates appropriate for their region.
This represents a significant policy shift for England, which has historically been one of the few developed countries without any form of tourist taxation. The change brings English cities in line with destinations across Europe, North America, and Asia where visitor levies are already commonplace.
Why Is the UK Introducing a Tourist Tax?
Funding Local Infrastructure and Services
The primary goal is enabling mayors to invest in transport, infrastructure, and the visitor economy without needing approval from central government. Tourism brings substantial benefits to local economies, but it also creates pressure on public services, transportation systems, and cultural sites.
Revenue generated from the visitor levy could fund projects that directly enhance tourist experiences while benefiting local residents:
- Transportation upgrades: Improved public transit, better connectivity to airports, enhanced cycling infrastructure
- Public space improvements: Upgraded parks, cleaner streets, better signage for tourists
- Cultural preservation: Maintenance of historic sites, support for museums and galleries, funding for local festivals
- Tourism services: Enhanced visitor information centers, multilingual services, improved accessibility
Addressing Post-Brexit Revenue Challenges
Post-Brexit and post-pandemic, local governments are looking for new revenue sources, and a tourist levy offers a politically acceptable way to raise funds without burdening local taxpayers. With council budgets stretched thin and central government funding constrained, tourism taxes provide an alternative revenue stream tied directly to visitor impact.
Aligning with Global Tourism Standards
The move ensures UK mayors have the same powers as their counterparts in cities like New York, Paris, and Milan, where charges on short-term trips are already standard. By implementing similar policies, English cities can participate in global best practices for sustainable tourism management.
Which UK Cities Will Implement the Tourist Tax?
The visitor levy is not automatically implemented everywhere. Individual mayors and local leaders decide whether to introduce the charge based on local needs and circumstances. However, several major cities have already expressed strong interest.
London: The Largest Potential Impact
London stands to benefit most significantly from a visitor levy. With more than 30 million visitors annually, London faces enormous pressure on transport, public facilities, and world-class heritage sites. A dedicated revenue stream could provide vital investment in infrastructure and landmark preservation.
If London implements a 5% accommodation surcharge, a £200 hotel stay would include an additional £10 charge. Given London’s massive visitor numbers and high accommodation costs, the capital could potentially generate hundreds of millions of pounds annually.
Manchester: Leading the North
Manchester Mayor Andy Burnham stated the region already has a thriving travel economy and that a levy would help sustain strong growth over the next decade. Manchester currently operates a voluntary “City Visitor Charge” of £1 per night through a Business Improvement District scheme, which raised £2.8 million in its first year. The new legislation would formalize and potentially expand this existing arrangement.
Other Cities Expressing Support
Mayors in West of England, West Yorkshire, York and North Yorkshire, and the North East have also expressed support, noting that a small fee could strengthen transport, fund festivals, and support heritage site upkeep. Liverpool, which already operates a voluntary accommodation levy similar to Manchester’s, is likely to formalize its approach under the new framework.
Edinburgh: Already Leading the Way
While this legislation applies to England, Scotland has its own visitor levy powers. Edinburgh will launch a 5% accommodation levy capped at seven nights in July 2026, expected to raise around £50 million annually. Edinburgh’s experience will serve as an important case study for English cities considering similar measures.
How Much Will the UK Tourist Tax Cost?
The exact cost remains undecided and will vary by location. The UK government describes the proposed levy as “modest,” but specific amounts will be determined locally. Two main approaches are under consideration:
Flat Rate Per Night
Similar to many European cities, some UK destinations may charge a fixed amount per person per night. For example:
- Manchester’s current voluntary charge: £1 per room per night
- Potential London rate: £2-£3 per night (estimated based on discussions)
- Comparison rates: Venice charges €10 for day-trippers, Paris charges €5 per night
Percentage-Based Charge
Alternatively, cities could implement a percentage of the accommodation cost:
- Edinburgh’s model: 5% of accommodation cost, capped at seven nights
- Potential London model: If implementing a 5% charge, a £240 hotel stay would include approximately £12 in tourist tax
- Barcelona’s approach: Combines a regional Catalan tax with city surcharges reaching €4-€8 per night depending on accommodation type
Impact on Different Travelers
Budget travelers: Those staying in hostels, budget hotels, or guesthouses would pay proportionally less, possibly £1-£3 per night in most cities.
Mid-range visitors: Travelers booking standard three- or four-star hotels might see £5-£10 added per night to their accommodation bills.
Luxury travelers: Guests at high-end hotels could pay £15-£25 or more per night depending on whether the city uses flat rates or percentage-based charges.
Family trips: A family booking a week in London could see £50-£100 added to their total accommodation costs depending on the final rate structure.
When Will the UK Tourist Tax Start?
Consultation Phase: Now Through February 2026
The government has launched a 12-week consultation period running until February 18, 2026. During this phase, businesses, tourism organizations, local communities, and travelers can provide feedback on how the levy should work.
The consultation addresses questions like:
- Should rates be flat or percentage-based?
- What exemptions should apply?
- How should revenue be allocated?
- How can implementation minimize administrative burden on accommodation providers?
Implementation Timeline: 2026-2027
Based on the consultation outcomes and legislative process, the earliest implementation would likely be late 2026 or 2027. Cities must also provide adequate notice to accommodation providers and travelers before introducing charges.
Edinburgh’s timeline provides a useful reference: Scotland’s visitor levy legislation passed in 2024, with Edinburgh’s tax launching in July 2026—a roughly 18-month implementation period.
Planning Your Trip
2025 travelers: Your trips this year will not be affected by the new tourist tax.
Early 2026 visitors: Unlikely to encounter the levy unless visiting Edinburgh after July 2026.
Late 2026 and beyond: Be prepared for tourist taxes in major English cities, particularly London and Manchester.
How Will the Tax Be Collected?
The visitor levy will be collected directly by accommodation providers and remitted to local authorities. This approach mirrors systems used successfully in other tourist destinations worldwide.
At Booking or Check-Out
Depending on local implementation, the charge may be:
- Included in online booking prices: Automatically added during the reservation process
- Collected at check-in or check-out: Paid directly at the hotel, guesthouse, or rental property
- Listed separately on bills: Itemized clearly so travelers understand the charge
Who Collects the Tax
Hotels, B&Bs, holiday rental hosts, and other accommodation providers are responsible for collecting the levy from guests and forwarding it to the local authority. This administrative arrangement is standard practice for tourist taxes globally and generally works smoothly once systems are established.
Exemptions and Special Cases
Under the proposals, emergency accommodation, homeless shelters, and registered Gypsy and Traveller sites used as primary residences would be exempt. Mayors would have authority to apply additional local exemptions, allowing them to tailor the levy to their specific circumstances.
Possible additional exemptions might include:
- Children under certain ages
- Travelers receiving medical treatment
- People with disabilities (following Edinburgh’s model)
- Business travelers in some circumstances
- Long-term stays exceeding a specified duration
How Does the UK Tax Compare Globally?
Tourist taxes are common worldwide, making the UK’s proposed levy part of a global trend rather than an outlier.
European Tourist Taxes
Paris, France: €0.20-€4.40 per person per night depending on accommodation type and rating
Barcelona, Spain: Regional Catalan tax plus city surcharge, reaching €4-€8 per night for hotels; Barcelona’s surcharge will increase €1 annually until reaching €8 in 2029
Amsterdam, Netherlands: 12.5% of the room rate (one of Europe’s highest)
Venice, Italy: €5-€10 depending on season and accommodation type, plus a separate €10 day-tripper fee
Rome, Italy: €3-€7 per person per night depending on accommodation category
North American Tourist Taxes
New York City, USA: Combined hotel taxes of approximately 14.75% including state, city, and special district charges
Las Vegas, USA: 13.38% in resort corridor, 13.38% in downtown areas
Vancouver, Canada: Additional Municipal and Regional District Tax (MRDT) of 3% on top of other taxes
Asia-Pacific Examples
Singapore: No tourist-specific tax, but 9% Goods and Services Tax applies to accommodations
Bali, Indonesia: Flat rate of approximately $10 per tourist per stay (recently implemented)
Japan: Various local accommodation taxes in cities like Tokyo, Osaka, and Kyoto ranging from ¥100-¥1,000 per night
How the UK Stacks Up
Research shows that reasonable fees have minimal impact on visitor numbers. The UK’s proposed levy appears moderate compared to high-tax destinations like Amsterdam or major US cities. If implemented at £2-£3 per night or 5% of accommodation costs, England would align with mid-range European taxation levels.
Industry Reaction: Support vs. Opposition
Tourism Industry Concerns
Kate Nicholls, chair of trade association UKHospitality, warned the levy could cost the public up to £518 million and that costs would be passed on to consumers. The hospitality sector expresses several concerns:
Competitive disadvantage: With the pound already strong against currencies like the US dollar, additional costs could make UK destinations less attractive than competitors
Administrative burden: Small B&Bs and independent hoteliers face additional bookkeeping and compliance requirements
Timing concerns: Implementation during ongoing economic uncertainty and high inflation could impact bookings
Double taxation: Businesses argue they already pay substantial business rates and other taxes supporting local services
Mayor and Local Authority Support
Liverpool Mayor Steve Rotheram noted that cities like Barcelona and Paris raise tens of millions annually through similar schemes, arguing their own fee would help fund major events and enhance local infrastructure.
Local leaders emphasize several benefits:
Direct investment: Revenue stays local and supports projects directly benefiting both visitors and residents
Visitor experience enhancement: Better maintained attractions, improved transport, and enhanced cultural offerings create better tourism experiences
Sustainable tourism: Funding helps manage tourism impacts, ensuring destinations remain appealing long-term
Fiscal autonomy: Reduces dependence on central government funding and gives local leaders control over priority investments
Traveler Perspectives
Many international travelers already familiar with tourist taxes in their home countries or other destinations view the levy as reasonable and expected. However, some concerns include:
Price transparency: Ensuring the tax is clearly communicated during booking so travelers aren’t surprised at check-out
Value demonstration: Wanting clear evidence that revenue benefits visitor experiences, not just general budgets
Regional fairness: Questioning whether all regions should charge the same or if adjustments should reflect local costs and visitor volumes
What Exemptions Will Apply?
While final exemption policies await the consultation outcome, several categories will likely receive special consideration:
Statutory Exemptions
Emergency accommodation, homeless shelters, and registered Gypsy and Traveller sites used as primary residences are explicitly exempt under current proposals.
Potential Additional Exemptions
Based on practices in other UK regions and internationally:
Children: Many tourist tax systems exempt children under 16 or apply reduced rates
Disability accommodations: Scotland’s legislation exempts those receiving disability benefits, setting a precedent England may follow
Medical travelers: People receiving medical treatment often receive exemptions
Long-term stays: Some systems cap the number of nights subject to the levy (Edinburgh caps at seven nights)
Local residents: People living in the area and temporarily staying in commercial accommodation
Local Flexibility
Mayors would have power to apply other local exemptions where appropriate, allowing them to tailor the levy to their local economy. This flexibility recognizes that one-size-fits-all approaches may not serve all communities equally.
How to Prepare for the UK Tourist Tax
For Travelers Planning 2026+ UK Trips
Research destination policies: Check whether your intended destinations have implemented visitor levies before booking
Budget accordingly: Add an estimated £5-£15 per night to your accommodation budget for major cities
Book directly with accommodations: Direct bookings often provide clearer information about additional charges than third-party platforms
Read booking terms carefully: Check whether the tourist tax is included in the displayed price or added later
Ask questions upfront: Contact your accommodation to confirm exactly what you’ll pay, including any tourist taxes
For Accommodation Providers
Participate in consultations: Share feedback on implementation challenges and suggest practical solutions
Update booking systems: Ensure your reservation software can properly collect and account for the levy
Train staff: Prepare your team to explain the tax to guests and handle collection procedures
Review pricing strategy: Consider how the tax affects your competitive positioning and overall pricing
Plan administrative procedures: Establish systems for collecting, recording, and remitting the levy to authorities
Frequently Asked Questions
Will the tourist tax apply to Airbnb and vacation rentals?
Yes, the proposed levy applies to all forms of paid overnight accommodation, including short-term rentals through platforms like Airbnb and Vrbo. Hosts will be responsible for collecting and remitting the tax just like traditional hotels.
Can I avoid the tourist tax?
No. Once implemented, the tax is mandatory for all eligible overnight stays. Exemptions will be limited to specific categories like emergency accommodation or potentially children and disability accommodations. Regular leisure and business travelers will be required to pay.
Will business travelers pay the tourist tax?
Yes, unless specific exemptions are created for business travel. Current proposals suggest the levy applies to all visitors regardless of travel purpose. Some cities might consider exemptions for business travelers to remain competitive for conference and corporate travel.
How will the tax affect UK tourism numbers?
Research shows reasonable fees have minimal impact on visitor numbers, and England attracts over 130 million overnight visits annually. Experience from other destinations suggests modest levies don’t significantly deter tourists, though extremely high taxes combined with other cost factors could influence destination choice.
What if I’ve already booked accommodation for 2026?
If your booking was made before the tax implementation and the accommodation didn’t include a clause about potential additional charges, you might not be liable. However, most booking terms include provisions for local tax changes. Contact your accommodation directly to clarify.
Will the tax apply to people visiting friends and family?
No. The levy applies only to commercial paid accommodation. Staying with friends or family in their homes would not incur the tourist tax.
How will I know if my accommodation includes the tax?
Accommodations should clearly itemize the tourist tax on your bill, either as a separate line item or noted in your booking confirmation. When booking online, look for information about “local taxes,” “visitor levies,” or “city taxes” in the price breakdown.
Can I get a refund if I’m unhappy with how the tax revenue is used?
No. Once collected and remitted to local authorities, the tax becomes public revenue subject to local government spending decisions. However, citizens and visitors can engage with local consultation processes about how revenue should be allocated.
The Future of UK Tourism Taxation
Potential Revenue Projections
If implemented widely across England, the visitor levy could generate substantial revenue. The Institute for Fiscal Studies estimated that a £1 per person per night charge would raise approximately £420 million annually in England.
For London specifically, given its 30+ million annual visitors and high accommodation costs, even a modest levy could generate £100-£300 million annually depending on the rate structure chosen.
Expansion Beyond England
Scotland has already enacted visitor levy legislation, with Edinburgh leading implementation. Wales has passed enabling legislation allowing local authorities to introduce similar taxes. Northern Ireland may consider comparable measures, potentially creating a UK-wide tourism taxation framework.
Long-Term Tourism Sustainability
The visitor levy represents a shift toward sustainable tourism models where visitors contribute directly to maintaining the attractions and infrastructure they use. This approach aims to balance tourism benefits with community needs, ensuring destinations remain attractive and viable long-term.
Cities implementing the levy will need to demonstrate clear benefits to maintain public and visitor support. Transparent reporting on how revenue is spent and visible improvements to tourist experiences will be crucial for long-term acceptance.
Tips for Budget-Conscious Travelers
Choose Strategic Timing
Visit during shoulder season (April-May, September-October) when accommodation prices are lower, reducing the proportional impact of percentage-based tourist taxes.
Consider Alternative Locations
Secondary cities without tourist taxes (initially) might offer better value. Instead of London, explore Bristol, Newcastle, or Leeds for urban experiences without the levy—at least until those cities decide to implement their own charges.
Book Longer Stays
Some tax systems cap the number of nights charged (like Edinburgh’s seven-night maximum). Longer stays might offer proportionally better value if caps are implemented.
Mix Accommodation Types
Combine nights in commercial accommodations with stays with friends, family, or through hospitality exchange networks to reduce the number of nights subject to the tax.
Monitor Consultation Outcomes
Stay informed about final tax structures and exemption policies. Children’s exemptions or other family-friendly provisions might significantly reduce costs for certain traveler types.
What This Means for the UK Tourism Industry
Competitive Positioning
The UK tourism sector faces a critical question: will the additional cost, combined with the already-strong pound, push travelers toward alternative destinations? Or will the UK’s unique attractions—history, culture, royal heritage, countryside, and cities—prove resilient to modest additional charges?
Experience from other destinations suggests that unique offerings and quality experiences matter more than small additional costs. Paris, Barcelona, and Amsterdam maintain strong tourism despite substantial taxes because visitors value what those cities offer.
Investment Opportunities
If the levy generates hundreds of millions in new revenue and that money genuinely improves tourist infrastructure and experiences, UK destinations could become even more attractive. Better transport, well-maintained attractions, enhanced accessibility, and improved services create a virtuous cycle attracting more visitors.
Regional Development
The levy empowers regions to invest in tourism development without central government dependency. Secondary cities could use revenue to develop their tourism offerings, potentially shifting some visitor pressure away from London and creating a more balanced national tourism economy.
Conclusion: Preparing for a New Era of UK Tourism
The proposed UK tourist tax marks a significant evolution in how England manages and funds its tourism sector. While adding costs for visitors, the levy promises reinvestment in infrastructure, services, and experiences that benefit both tourists and residents.
As the consultation period continues through February 2026 and implementation plans take shape, travelers should stay informed about developments in their intended destinations. The era of tax-free overnight stays in England is ending, but the visitor levy could ultimately enhance the UK tourism experience if revenue is invested wisely and transparently.
Whether you’re planning a future UK trip or work in the tourism industry, understanding this policy shift helps you prepare for the changes ahead. The visitor levy represents a global trend toward sustainable tourism funding—and the UK is finally joining cities worldwide in asking visitors to contribute to the destinations they enjoy.
