The rule is the same for a two-room guesthouse as for a 200-room hotel — but B&Bs have one wrinkle the others don't: the breakfast in the rate. Get the base right and the rest is straightforward.
- The rate
- 5%
- Charged on
- Accommodation cost, before VAT
- Breakfast / meals
- Excluded — not leviable
- Capped at
- First 5 consecutive nights of a stay
- You retain
- 2% of what you collect
- Starts
- 24 July 2026
- Reported
- Quarterly, to the City of Edinburgh Council
Does the levy apply to my B&B?
Yes. The levy applies to all paid overnight accommodation in Edinburgh, and the Council's scheme names bed and breakfasts and guesthouses directly, alongside hotels, hostels, self-catering and short-term lets.
It applies even if your business is small. The Council has confirmed that the levy applies to all overnight accommodation, including businesses operating with an annual turnover below the VAT threshold. Being under the VAT threshold does not exempt you from the levy.
The breakfast question — this is the important one
The levy is charged on the accommodation cost, before VAT. The Council has confirmed that the levy is not charged on extras such as parking, meals, drinks or transport.
Breakfast is a meal. So where your rate is a genuine bed-and-breakfast package that combines the room and the breakfast in one price, only the accommodation portion of that price is leviable — the meal element is not. If you charge a room-only rate and breakfast separately, the position is clearer: you levy the room, not the breakfast.
Applying 5% to your full package rate, breakfast included, over-charges your guests and over-declares to the Council. Apply the levy to the accommodation portion only. If you're not sure how to separate the two, the visitor levy and VAT guide walks through the base.
How much is the levy?
5% of the accommodation cost, before VAT, on the first five consecutive nights of a stay. For example, a £90-per-night room (the accommodation portion, with breakfast stripped out) booked for two nights:
The five-night cap
The levy is payable for a maximum of five consecutive nights. If a guest stays with you for six or seven nights in a single stay, you charge the levy on the first five nights only. If a guest checks out and returns later for a separate stay, each stay is assessed on its own.
Bookings you may not charge for
Stays on or after 24 July 2026 that were booked and paid for, in part or full, before 1 October 2025 are not subject to the levy — the transitional rule.
Some guests are also exempt or excluded, such as certain people receiving disability-related benefits or those who are homeless or at risk of homelessness. Those guests pay the levy to you and reclaim it from the Council with evidence. Your role is to charge and record correctly and keep the paperwork. There's more detail in the levy explained.
Filing — even a small B&B files quarterly
The levy is reported and paid quarterly, in arrears, through the Council's online portal. The first return covers 24 July to 30 September 2026 and is due in October 2026. You must keep accurate records of every booking and levy figure, because the Council carries out inspections. Providers retain 2% of the levy they collect as an administrative allowance.
For a step-by-step, see how to file your Edinburgh visitor levy return.
Doing this without a finance team
Most B&Bs and guesthouses don't have a finance department. That's exactly the situation LevyReady is built for.
A Council-ready return, without the finance team
Upload your booking export — whatever format you keep your reservations in — and LevyReady applies Edinburgh's rules to every booking, handles the accommodation base and the five-night cap, and produces a checked, Council-ready return in minutes, with a self-check that blocks a wrong figure. Your booking data never leaves your browser.
Run your first audit free →Questions
Does the Edinburgh visitor levy apply to small B&Bs?
Yes. It applies to all paid overnight accommodation including B&Bs and guesthouses, even those operating below the VAT threshold.
Is breakfast included in the Edinburgh visitor levy?
No. The levy is charged on the accommodation cost only. Meals, including breakfast, are an excluded extra, so only the accommodation portion of a bed-and-breakfast rate is leviable.
How much is the Edinburgh visitor levy for a guesthouse?
5% of the accommodation cost, before VAT, on the first five consecutive nights of each stay.
Do small operators have to file quarterly?
Yes. All providers report and pay quarterly through the Council's online portal, keep records for inspection, and retain 2% of the levy collected.
This guide is general information, not tax or legal advice, and figures reflect the City of Edinburgh Council scheme as published (confirm current details on the Council's portal). LevyReady does not file returns on your behalf — the operator remains legally responsible for the accuracy of all submissions.