London and Other UK Cities Plan to Add a Nightly Tourism Tax—What Travelers Should Know

Visiting the United Kingdom may soon be more expensive. 

Several local governments from London to Manchester and beyond are closer to launching a new tax on overnight stays, according to the government. The new tax would apply to travelers staying at hotels, holiday rentals, bed and breakfasts, and guesthouses.  

The government noted the proposed tax would put the UK in line with other major cities around the world that charge overnight fees like New York, Paris, and Milan.

“Tourists travel from near and far to visit England’s brilliant cities and regions,” Steve Reed, the UK’s secretary of state for housing, communities and local government, said in a statement. “We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

A 2020 analysis from the Local Government Association noted the tax could be calculated either by a percentage of the bill, a flat fee, or through another variation.

The revenue generated will then be invested in the community, like public infrastructure projects, street improvements of high-traffic tourism areas, transportation, and more.

“Giving Mayors the powers to raise a tourist levy is great news for London,” London’s Mayor Sadiq Khan said in the statement. “The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination… As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.”

Greater Manchester Mayor Andy Burnham echoed the sentiment, saying the new levy “will help us sustain good growth over the next decade” and “invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams, making sure every experience is a positive and memorable one.”

The proposed overnight tax is currently under a consultation phase, which is expected to conclude by Feb. 18, 2026.

The UK is far from alone in implementing a tax for overnight visitors. Starting in March 2026, Japan is expected to raise the hotel accommodation tax for the popular city of Kyoto. Similarly, Venice imposes its own overnight tax for visitors to the Italian city and also charges day trip visitors a fee in an effort to cut down on overcrowding there.