The Scottish Government will introduce legislation allowing councils to apply a flat-rate visitor levy, expanding powers beyond the current percentage-based tourist tax.
From this week, anyone booking accommodation in Edinburgh for stays after July 24, 2026, will face a 5 percent levy.
Glasgow is expected to follow soon after.
The levy will apply to hotels, B&Bs and self-catering properties, typically capped at the first five nights.
Public finance minister Ivan McKee said a Bill would be lodged early next year, with hopes it will pass before the end of the parliamentary term in March.
The measure is designed to help fund local services and infrastructure by addressing the impact of tourism.
Industry groups have raised concerns about higher costs.
Marc Crothall, chief executive of the Scottish Tourism Alliance, said the move showed the government’s willingness to “act on feedback from business,” but urged councils to pause their plans for a tourist tax.