Trips to Edinburgh, Scotland are now a bit more expensive, as the city became the first in the United Kingdom to implement a tourist tax on overnight stays on July 24, according to the city’s official website.

Under the new scheme, travelers to the Scottish capital will be charged an additional 5% of their overnight accommodations cost for a maximum of five consecutive nights.

In May 2024, the Scottish government first passed the Visitor Levy Bill, granting each city the power to introduce their own tourist tax. Edinburgh lawmakers formally agreed to the tourist tax in January 2025.

“We know that the city’s popularity comes at a cost through the pressure it puts on our services and on the people who live and work here all year round,” said Council Leader Jane Meagher in a July 23 media release. “This small new contribution from overnight visitors will help improve the services and public spaces we all depend on, while better managing the effects of tourism and major events.”

It’s expected to raise up to 50 million pounds annually – or over $67 million USD, as of July 26 conversion rates – for the city to “invest in protecting, supporting and enhancing Edinburgh’s worldwide appeal as a place to live and visit,” the city said in a January 2025 media release.

The tax’s revenue is expected to fund various city-wide projects such as keeping streets clean by upgrading and replacing public trash bins, investing in city parks by hiring more park rangers and planting more trees, and restoring heritage and cultural locations like the Leith Theatre to create a year-round live music space.

Scotland is just the latest European destination to charge a tourist tax. Over the last several years, cities such as Amsterdam and Venice have introduced similar fees to offset the negative impacts of overtourism and improve the quality of life for its residents. Following behind Edinburgh’s lead, Glasglow is slated to implement its own tourist tax of a 5% charge on accommodations starting Jan. 1, 2027, according to Scotland’s visitor levy website.

Here’s what travelers should know about Scotland’s first tourist tax.

More: Visiting Barcelona could soon cost more for some tourists

Who pays the Edinburgh tourist tax?

The tax will be paid by visitors with overnight stays in Edinburgh, not day trippers. It will be charged to all overnight accommodation types, whether at a hotel, Airbnb, hostel or camping site.

How much is the Edinburgh tourist tax?

The 5% tax is charged to only the accommodation part of a stay, not extra services like parking fees or laundry. It is also not a per-person fee, but applies to the room rate, according to the official website.

For example, if your hotel costs £100 per night, the tax will be an additional £5 per night. The final cost for a five-night stay will then go from £500 to £525.

How does the Edinburgh tourist tax work?

Businesses are responsible for collecting the tourist tax on the final bill, so travelers don’t need to calculate it themselves.

This article originally appeared on USA TODAY: This popular European city just introduced a tourist tax. What to know