Tourist tax in England A complete guide

Clear, up-to-date guidance on tourist taxes and visitor charges in England. See what the government has confirmed at national level, what already applies in cities like Manchester and Liverpool, and what hosts and platforms should keep an eye on next.

Does England charge a tourist tax?

No, not yet, although the framework is now confirmed.

On 10 September 2026 the government published its response to the visitor levy consultation and confirmed a discretionary Overnight Visitor Levy for strategic authorities across England, charged as a percentage of the accommodation cost. Legislation is expected during the current Parliamentary session, so no authority can charge the levy today. Manchester and Liverpool do already charge guests a nightly fee through their Accommodation BIDs, which is a separate local scheme. Wherever a levy applies, UK law requires it to sit inside the total price a guest sees upfront. Read more about this here: tourist tax and the CMA pricing rules. 

For tourists

What the Overnight Visitor Levy will look like

The levy will be a percentage of the accommodation cost on paid overnight stays, with no national cap on that percentage and no cap on the number of consecutive nights it applies to. The power is discretionary: each strategic authority decides whether to introduce a levy, at what rate, and which optional exemptions to apply, after running a public consultation of its own. Both Mayoral and Foundation Strategic Authorities hold the power, so it reaches beyond the areas with an elected mayor.

Revenue stays local, guided by each authority's regional growth strategy, and authorities report annually on what they collect and spend. Local leaders are expected to set out their investment plans by March 2028. Both the percentage rate and the absence of a cap went against the majority of the 1,223 consultation responses, which the government acknowledged as a finely balanced call.

Which stays are exempt

Two tiers. Nationally, the non-commercial categories are out: registered gypsy and traveller sites, temporary accommodation used as a primary residence, and charitable accommodation for shelter or refuge. Beyond that, each authority can exempt tent pitches, touring caravan pitches and hostel dormitories in its own area, largely to protect school and youth group trips.

One thing no authority can do is exempt a whole locality. Exemptions follow the accommodation type rather than the guest, because the government ruled out any carve-out by nationality or residency: checking it would mean asking providers and guests for sensitive personal detail. So a family from Leeds pays the same as a family from Lisbon, and the percentage rate does the rest.

Where did this come from?

The levy is one piece of the government's wider devolution agenda. Just 6% of UK taxes are collected sub-nationally, the lowest share in the G7, and the levy is presented as one way to shift that, alongside local income tax retention and business rates devolution. The visitor economy carries the other half of the argument: it contributed £64.3bn to the UK economy and supported 1.3 million jobs in 2024.

It follows years of lobbying by big-city mayors such as London and Greater Manchester, who point out that most major European cities already charge some form of tourist tax, and by organisations representing visitor-heavy counties like Devon and Cornwall. The government's framing is that visitors use the same pavements, transport and public spaces as residents, and that a contribution towards those is already standard practice in Edinburgh, Wales and much of Europe.

Hospitality argues the other way. UKHospitality warns that an uncapped tax-raising power risks being used more aggressively over time, with thin-margin operators and holiday parks in the shoulder seasons most exposed. The government's response points to Amsterdam, which raised its tourist tax from 7% to 12.5% in 2024 and has set a record for overnight stays every year since, reaching 23.7 million in 2025.

What is the timeline?

The consultation ran for 12 weeks, from 26 November 2025 to 18 February 2026, and drew 1,223 responses. The Ministry of Housing, Communities and Local Government and HM Treasury published their formal response on 10 September 2026, and that document settled the design: a percentage of the accommodation cost, no national cap, and exemptions tied to the type of accommodation.

Legislation is expected during the current Parliamentary session. Each strategic authority that wants a levy then runs its own public consultation before it can introduce one, so the first English levy will follow the Act rather than arrive with it. Local leaders are expected to set out how they will invest the revenue by March 2028, which gives a sense of the horizon the government is working to.

Until the legislation is in place, no English authority can charge the Overnight Visitor Levy, so hosts and platforms have nothing to collect on that basis today. What does apply are the Accommodation BID charges in Manchester and Liverpool, covered below. Our post England's Overnight Visitor Levy is now official sets out what the government confirmed and where the final design departed from the consultation responses.

Tourist tax in England

Manchester and Liverpool remain the only two English cities where an Accommodation BID actually charges guests today. Nine other city regions, Greater Manchester, Liverpool City Region, the West Midlands, the North East, the West of England, West Yorkshire, South Yorkshire, the East Midlands and York and North Yorkshire, have pledged to introduce the new national levy at a capped 5% once the law allows it, alongside London.

• Manchester
• Liverpool
• London

How Trippz can help you

ABID charges in the price you advertise

The ABID charge is mandatory for every guest staying inside the zone, £1 per room per night in Manchester and £2 in Liverpool, which places it in the total price a customer has to see before booking. The Digital Markets, Competition and Consumers Act 2024 makes drip pricing unlawful, and the CMA reads an invitation to purchase broadly. Search results, app banners and shopping baskets all count, so the obligation follows the price at each of those touchpoints, well before final checkout.

That has consequences for a charge many properties collect on arrival. Collecting at check-in is a separate matter from displaying the amount, and the display duty starts at the first price a guest sees. The CMA's guidance extends liability across the commerce chain, including online marketplaces and price comparison sites, alongside the business that delivers the stay. An English city visitor charge shown too late is therefore a problem for the platform and the property at the same time. Our post the CMA's pricing rules for travel: what has to be in the total price explains what has to be in the total and where the liability sits.

Frequently asked questions from tourists

• Do I have to pay the tourist tax in England?

  In Manchester and Liverpool, yes. Stay in a hotel or serviced apartment inside the Accommodation BID zone and you pay a small nightly charge. Everywhere else in England there is nothing to pay yet. The government confirmed a framework for an Overnight Visitor Levy in September 2026, but the law still has to pass and each area then decides for itself.

• How much is the tourist tax in England?

  £1 per room per night in Manchester, £2 in Liverpool, at most hotels and serviced apartments inside each city's Accommodation BID zone. No other English city charges a tourist tax today. Once the Overnight Visitor Levy becomes law, rates will be a percentage of the accommodation cost, set locally, with no national cap. London's Mayor has proposed 5% of the room rate, and ten Labour mayoral areas have pledged to cap themselves at 5%.

• Is the tourist tax included in my booking price?

  Under UK pricing rules the charge belongs in the total price you see when you book. Where a property still adds it at check-in or checkout, that falls short of what the Competition and Markets Authority requires.

• Why are these cities charging a tourist tax?

  Manchester and Liverpool use the tourist tax to fund city improvements, support local services, and enhance the visitor experience—keeping both destinations vibrant and welcoming.

• Are children exempt from the tourist tax?

  No, in both cities, the tourist tax is charged per room, per night. The rate stays the same, regardless of how many people, including children, are staying in the room.

• Will UK residents have to pay the English visitor levy?

  Yes. The government ruled out exemptions by nationality or residency, because checking who qualifies would mean handling sensitive personal detail. Exemptions go by accommodation type instead, so a domestic holidaymaker pays the same as an overseas visitor.

For hosts

Guest registration in England

No matter where you host Manchester, Liverpool, or any English city, guest registration is part of the national rules. For every guest over 16, accommodations must record their full name and nationality. For guests from outside the UK, Ireland, or the Commonwealth, you’ll also need their passport details and next destination. Keep these records for at least 12 months and be prepared to share them with authorities if requested. Local councils may have extra requirements, so it’s always smart to double-check. Keeping good records makes compliance simple and protects your business, wherever you are.

How Trippz can help you

Handling of tourist tax

• Remittance of tourist tax

  If you run a hotel, serviced apartment, or guesthouse in Manchester or Liverpool’s ABID zones, you’re the one who collects the accommodation tax from your guests—£1 per room per night in Manchester, £2 in Liverpool. Once you’ve collected it, it’s essential to remit this tax to the local authorities by their set deadlines. Staying on top of your payments keeps your business compliant and helps keep your city welcoming for all.

• Keeping your administration for ABID

  Smart administration matters. Keep clear, accurate records of every night stayed, every tax amount collected, and every supporting document—think invoices, receipts, and guest logs. Store these securely and hang onto them for several years, just in case the council wants to inspect. Stay organized, avoid surprises, and show you run a trusted, future-proof accommodation.

• Accommodation tax when renting through an online booking platform

  Letting your place through Airbnb or Booking.com? You’re still responsible for the accommodation tax. Even if the booking is managed by the platform, double-check tax policies, sometimes the platform collects and remits on your behalf, sometimes it’s up to you. Be sure to include the tax in your listing and stay proactive about monitoring payments, so you’re always compliant with city guidelines, no matter how your guests book.

Frequently asked questions from hosts

• Do I need to charge the accommodation (ABID) tax to all my guests?

  Yes, if you operate a hotel, serviced apartment, or qualifying short-term rental within an Accommodation Business Improvement District (ABID), such as in Manchester or Liverpool, you’re required to charge the ABID accommodation tax to all guests staying in your property. This applies to every guest, regardless of their nationality or booking channel.

• How do I remit the accommodation (ABID) tax I collect?

  The ABID or accommodation tax you collect must be paid to the local city authority, following their official remittance schedules and guidelines. It’s essential to stay updated with your city council (such as Manchester City Council or Liverpool BID Company) for the most accurate instructions on payment deadlines and processes.

• Do I need to charge the accommodation (ABID) tax if I’m renting through Airbnb or Booking.com?

  Yes, even when renting through platforms like Airbnb or Booking.com, you are still responsible for ensuring the correct ABID accommodation tax is collected from your guests. Check with your platform to see whether the tax is included automatically in their pricing and remitted on your behalf, or if you need to collect and remit it directly to the city authority. Always keep clear records to stay compliant.

• Do I need to prepare for the Overnight Visitor Levy now?

  Nothing to collect yet. The law has to pass, and your strategic authority then has to consult and decide before a levy touches your bookings. Worth knowing now: a percentage of the accommodation cost, no cap on the rate or on consecutive nights, and exemptions by accommodation type rather than by guest. If you operate across more than one authority, expect separate registration and reporting per area, which the government says it wants to simplify.

Trippz: the authority on tourist tax

Tourist tax is set locally and rates change without warning. Trippz tracks every change and keeps the data current, which is why travel platforms and property software, including Airbnb, Booking.com and Expedia, rely on Trippz to calculate tourist tax and register guests in every market they serve.

How Trippz stays current

Trippz checks tax rules jurisdiction by jurisdiction against official municipal and national sources. When a rate or rule changes, the update happens automatically rather than on a periodic review cycle. This is the same monitoring that travel platforms and software vendors depend on to stay accurate everywhere they operate.

One tax engine, every market

Send a location, get the applicable rate, instantly and correctly calculated. Travel platforms and property software embed this calculation directly into their own product, so every booking is taxed correctly without building or maintaining a rate engine in house. It is the same logic behind every rate on this page.

Explore Trippz for Platforms

Frequently asked questions about Trippz

• How can platforms and software vendors use Trippz?

  Trippz provides tourist tax content and a ready made calculation engine through one API. Platforms and software vendors add accurate tax calculation to their product without maintaining a rate database in house. Guest registration and authority connections are available as a separate capability for those who need it.

• How does Trippz keep tourist tax rates current?

  Trippz checks the jurisdictions it covers against official sources and updates rates automatically when a city or country changes them.

  
  

• Which countries and cities does Trippz cover?

  Trippz maintains tourist tax data across a wide range of countries and cities. See the full overview in our tourist tax guides.

• Is Trippz's data and infrastructure secure?

  Yes. Trippz is SOC1 Type 2 and SOC2 Type 2 certified and GDPR compliant, so platforms and software vendors can embed tourist tax calculation without adding security or compliance risk of their own.

• Who uses Trippz for tourist tax?

  Trippz provides tourist tax data and calculation to travel platforms and property software across Europe, including Airbnb, Booking.com and Expedia. The same infrastructure that powers stays booked through the biggest platforms in travel is available to any platform or software vendor through the API.