Tourist Taxes

England's overnight visitor levy

No tourist tax can be charged in England today. On 10 September 2026 the government said it will give mayors the power to charge one and set out how it will work, but a new law has to come first.

Updated

What the government confirmed

The Ministry of Housing, Communities and Local Government consulted from 26 November 2025 to 18 February 2026 and published its response on 10 September 2026.

Who can charge it
All Mayoral and Foundation Strategic Authorities, including the Mayor of London. Each decides whether to, and has to consult locally first.
How it's charged
A percentage of the cost of the accommodation, "rather than as a flat fee". Meals are left out. There's one rate per area, which can't vary by season, type of accommodation or local council.
Caps
The government doesn't plan a maximum rate (it calls the question "finely balanced" and will keep it under review), and areas can't cap the number of nights.
What's covered
All short-term commercial visitor accommodation: hotels, B&Bs, hostels, campsites, self-catering, short-term lets, and university or religious buildings let commercially. People who let a room only occasionally will fall under a small-scale threshold.
Exemptions
Non-commercial stays, temporary accommodation, refuges and charitable shelter, and Gypsy and Traveller sites, everywhere. Areas may also exempt tent and touring caravan pitches and hostels. Exemptions go by type of accommodation, never by who the visitor is.
Who collects
Accommodation providers work out and pay what they owe. The strategic authority acts as the tax authority.

The road to a levy

  1. Consultation opens

  2. Consultation closes

  3. Government response published

    Mayors to get the power; a Bill to follow "in due course".

  4. Areas expected to set out plans

    The government expects this by March 2028. None has proposed a rate yet.

Which mayors want one

The announcement quoted the mayors of the Liverpool City Region (who said a levy could raise up to £18 million a year), the East Midlands, London, West Yorkshire, the West of England and South Yorkshire, all welcoming the power. The mayor of York and North Yorkshire said nothing would be decided without a full public consultation. None has proposed a rate yet.

What visitors pay in England today

Only the voluntary hotel charges set up through Accommodation Business Improvement Districts: Manchester (£1 plus VAT per room per night) and Liverpool (£2 per room per night). Cambridge's hotels voted against one in 2024.

Sources