The Budget has confirmed that mayors across England can charge an overnight visitor levy from 2028. Here's how England's tourist tax will work, what it could add to a hotel bill in dollars, and why it won't affect a trip in 2027.
England’s tourist tax now has a date. In his Budget on October 28, 2026, Chancellor John Healey told MPs: “From 2028, mayors and other strategic authorities will have new powers to introduce an overnight visitor levy.” In plain English, from 2028 cities and regions across England will be able to add a percentage to the cost of every night you spend in a hotel, B&B or vacation rental.
If you’re planning a trip to England in the next few years, here’s what was confirmed, what the England tourist tax 2028 changes could cost you in dollars, and why your 2027 trip is safe.
The Budget built on a detailed plan the government published on September 10, 2026, in its response to a public consultation. Together, they set out how the levy will work:
Parliament still has to pass the law, and the government expects local leaders to set out how they’ll spend the money by March 2028. No area has yet announced a rate or a start date.
Because the levy is a percentage, what you pay depends on the price of your room. Here’s what it would add per night at 2%, 3% and the expected maximum of 5%, converted at £1 = $1.34:
Over a week, it adds up. Seven nights in a £230-a-night London hotel would cost an extra £32.20 (about $43) at 2%, £48.30 (about $65) at 3% or £80.50 (about $108) at 5%. Because England won’t cap the number of nights, a two-week stay costs twice as much again.
The levy won’t arrive on its own. Americans already need a UK Electronic Travel Authorisation (ETA), now £20 (about $27) per person and valid for two years. And Scotland is ahead of England:
So picture a couple on a classic two-week trip in 2028: six nights in London at £230 and four nights in Edinburgh at £180. If London adopts a 5% levy, they’d pay £69 in London and £36 in Edinburgh, plus £40 for two ETAs. That’s £145, or about $194, before VAT, which already adds 20% to hotel bills in Britain.
Don’t expect to dodge it. The government has decided that exemptions will be based only on the type of accommodation, not on who you are, so there are no exemptions for children, business travelers or foreign visitors. What’s out of scope:
If you’re traveling to England in 2027, you won’t pay the levy. The powers don’t start until 2028, and each area still has to consult and set a rate before charging anything. The government has decided not to set a minimum notice period, so watch for announcements if you’re booking a 2028 trip far in advance.
Scotland and Wales are a different story: Edinburgh’s levy applies now, Glasgow’s starts in January 2027, and Cardiff’s is due from April 2027.
Britain’s hospitality industry is strongly opposed. UKHospitality estimates the levy could cost 33,000 jobs, and Jon Hendry-Pickup, chief executive of the vacation-park chain Butlin’s, called it “a tax on UK holidaymakers.” Supporters point out that tourist taxes are routine in Paris, Rome, Barcelona and many US cities, where hotel taxes are often far higher. Steve Rotheram, Mayor of the Liverpool City Region, has said the charge would be “probably the price of a coffee” on a weekend stay, and that it would pay for infrastructure, transport and attractions.
For a deeper look at what it means for London, including our take on why it’s the wrong move, read Londontopia’s full explainer on England’s tourist tax. And on a happier note, Britain’s great national museums are staying free for everyone, including American visitors.
Figures are illustrative; actual rates will be set by each area. Exchange rate used: £1 = $1.34 (November 2, 2026).
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IMO: That’s alot of extra money to have to budget for a holiday in the UK. Luckily, I will be visiting in March/April 2027.
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