Visitor Levy Wales for Holiday Lets – 2026 & 2027 Guide
Welsh councils can introduce a Visitor Levy on overnight stays, with the first levy due to begin in Cardiff from April 2027.
This guide explains the £1.30 and 75p rates, which accommodation is affected, how the levy is calculated, when owners must account for it and how it differs from the new Wales Visitor Accommodation Register.
The Visitor Levy does not automatically apply across the whole of Wales. Each council decides whether to introduce it after consultation. Cardiff has confirmed that its levy will start on 1 April 2027. Accommodation providers in Cardiff must begin accounting for relevant future bookings from 28 September 2026.
What Is the Wales Visitor Levy?
The Visitor Levy is a new Welsh tax connected to overnight stays in visitor accommodation.
The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 gives Welsh principal councils the power to introduce the levy in their own areas.
This means there is no single date on which every holiday let in Wales suddenly starts charging a tourism tax. A local council first has to consult, decide to introduce the levy and publish formal notice.
Where the levy applies, the visitor accommodation provider is legally responsible for paying it to the Welsh Revenue Authority.
How Much Is the Visitor Levy in Wales?
Two levy rates have been established. Which rate applies depends primarily on the type of visitor accommodation.
Higher Rate
This is the rate that will apply to most holiday accommodation.
- Holiday cottages
- Self-catering holiday lets
- Apartments and houses
- Hotels and B&Bs
- Static caravans
- Caravan and motorhome pitches
- Glamping pods
- Shepherd's huts
- Chalets and lodges
- Homestays and spare-room accommodation
Lower Rate
The lower rate applies to specific lower-cost and shared accommodation.
- Shared hostel rooms
- Bunkhouses
- Bothies
- Dormitory-style accommodation
- Tent pitches
- Temporary tent pitches at events
Children under 18 are not counted for the lower-rate levy.
How Is the Visitor Levy Calculated?
The calculation is based on the number of people entitled to stay overnight, multiplied by the number of nights and the appropriate levy rate.
Couple · 3-Night Cottage Stay
2 visitors × 3 nights = 6 leviable nights.
6 × £1.30
£7.80 levyFamily of Four · 7 Nights
4 visitors × 7 nights = 28 leviable nights.
28 × £1.30
£36.40 levySolo Guest · 4-Night Glamping Stay
1 visitor × 4 nights = 4 leviable nights.
4 × £1.30
£5.20 levyDo not assume children are automatically exempt.
The under-18 exemption applies to accommodation charged at the lower 75p rate. For most self-catering holiday accommodation, which uses the £1.30 higher rate, visitors of all ages are included.
Who Actually Pays the Visitor Levy?
Legally, responsibility for the levy rests with the visitor accommodation provider.
Pass It On to Guests
An accommodation provider can increase the amount charged to visitors to cover some or all of the Visitor Levy.
In practice this may appear as a clearly identified charge or be incorporated into the overall accommodation price.
Absorb the Cost
A provider can instead choose to keep guest prices unchanged and pay the Visitor Levy from the income received.
Either way, the provider remains responsible for paying the correct levy to the Welsh Revenue Authority.
Will Every Holiday Let in Wales Pay the Visitor Levy?
No. The Visitor Levy is discretionary, meaning each principal council decides whether it wants to introduce the tax in its own area.
Council Consultation
A council must consult local people, businesses and tourism interests before deciding to introduce the levy.
Formal Council Decision
The full council must make the decision and publish formal notice setting out its intention to introduce the levy.
Local Start Date
A levy can only begin on 1 April or 1 October, with April 2027 being the earliest possible introduction date.
Cardiff Visitor Levy Starts 1 April 2027
Cardiff Council has confirmed introduction of the Visitor Levy. Cardiff accommodation providers need to begin accounting for qualifying future bookings from 28 September 2026 for stays taking place from 1 April 2027.
The position in other council areas can change as consultations and council decisions take place, so accommodation owners should check the latest position for their own local authority.
What About Bookings Made Before the Levy Starts?
Transitional rules are important because a stay taking place after a council introduces the levy is not automatically taxable simply because the holiday occurs after the start date.
Generally, once a council formally announces introduction of the levy, there is a six-month transitional period before newly made bookings for future qualifying stays come within scope.
Earlier Existing Booking
Where a qualifying future stay was booked before the relevant transitional date, the booking can remain outside the levy rules provided it is not subsequently changed in a way that brings additional visitors or nights into scope.
Booking Later Changed
If additional visitors or nights are added after the relevant date, the additional part of the booking can become liable for the Visitor Levy.
Visitor Levy & VAT
Holiday accommodation businesses should also consider how passing the Visitor Levy to guests affects VAT.
VAT-Registered Providers
Where a VAT-registered accommodation provider increases the guest's charge to recover the levy, VAT applies to the total amount the visitor pays, including the amount added to cover the Visitor Levy.
Not VAT Registered
Where a provider passes the levy cost to guests, that additional amount can count towards taxable turnover. Owners approaching the VAT registration threshold should therefore take this into account.
Where a VAT-registered provider leaves the guest price unchanged and absorbs the Visitor Levy themselves, there is no additional VAT amount created simply by paying the levy.
What Records Will Holiday Let Owners Need?
Visitor Levy is a self-assessed tax. Providers operating in a levy area therefore need records that allow the correct amount to be calculated and reported.
- Number of visitors included in bookings
- Number of nights in each booking
- Date the booking was made
- Date the overnight stay takes place
- Changes adding visitors to existing bookings
- Changes adding nights to existing bookings
- Accommodation type and relevant levy rate
- Stays falling outside the levy rules
- Relevant under-18 guests in lower-rate accommodation
- Cancelled bookings and no-shows
How Often Will Owners Pay the Visitor Levy?
The frequency of Visitor Levy returns depends on the amount of levy a provider owes during their first accounting year.
Annual or Quarterly Returns
Providers owing £1,000 or less can file annually or choose to file quarterly.
Quarterly Returns
Providers owing more than £1,000 must normally submit Visitor Levy returns every three months.
Can Visitors Claim a Visitor Levy Refund?
There are specific circumstances in which a visitor may be able to apply directly to the Welsh Revenue Authority for repayment of the levy after their stay.
Carers
A person staying in order to provide care to a disabled person may be eligible to apply for repayment.
Temporary Homelessness
A person temporarily homeless during the period of their stay may qualify under the repayment provisions.
Fleeing Harm
Repayment provisions also cover people staying in accommodation while fleeing harm or domestic violence.
These repayments are dealt with by the Welsh Revenue Authority rather than being general discretionary refunds offered by the holiday let owner.
What If You Use Airbnb, Booking.com or an Agent?
Booking platforms, agents and property managers may be able to help collect amounts covering the Visitor Levy or deal with certain administrative tasks.
However, using a third party does not automatically transfer the provider's legal responsibility for complying with the levy.
Owners should check exactly what their booking platform, management company or agent will and will not handle before relying on them for Visitor Levy administration.
Visitor Levy vs Visitor Accommodation Register
The two systems have been introduced through the same wider Welsh tourism legislation, but they perform different functions.
Visitor Accommodation Register
A national Wales-wide register of qualifying visitor accommodation providers and premises.
Registration begins in 2026 and applies independently of whether the local council chooses to operate the Visitor Levy.
Read our Visitor Accommodation Register Wales guide .
Visitor Levy
A local tax that only applies where a principal council has formally decided to introduce it.
The earliest implementation date is April 2027, and each council makes its own decision following consultation.
Wales Visitor Levy Timeline
The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 received Royal Assent.
Councils can consult their communities and decide whether they wish to introduce the Visitor Levy.
Cardiff accommodation providers begin accounting for relevant future bookings under Cardiff's transitional arrangements.
Cardiff's Visitor Levy begins and this is also the earliest possible implementation date for a Welsh Visitor Levy.
What Holiday Let Owners Should Do Now
Even owners outside Cardiff should understand the system because other Welsh councils may consider introducing a levy in future.
- Check whether your local authority is introducing or consulting on a Visitor Levy.
- Complete your Wales Visitor Accommodation registration when required.
- Confirm which levy rate applies to your accommodation.
- Make sure your booking system records visitor numbers and nights.
- Keep the original date on which each booking was made.
- Record amendments that add nights or guests.
- Decide whether you would absorb or pass on the levy.
- Check the VAT implications if you intend to pass the levy to guests.
- Ask booking platforms or agents what support they will provide.
- Keep an eye on Welsh Revenue Authority guidance as systems go live.
Official Information Behind This Guide
Holiday Lets Wales reviews official Welsh Government and Welsh Revenue Authority information when updating this guide. Because individual councils can introduce, change or later remove a levy, owners should always confirm the latest position for their area.
Key official sources include:
- Welsh Revenue Authority – Visitor Levy for accommodation providers
- Welsh Government – Visitor Levy in Wales
- Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025
- Welsh Revenue Authority – Visitor Levy technical guidance
- Welsh Revenue Authority – Cardiff accommodation provider guidance
- Welsh Government – Visitor Levy guidance for local authorities
Wales Visitor Levy – FAQs
Is there a tourist tax in Wales?
Wales now allows individual councils to introduce a Visitor Levy on overnight accommodation. It does not automatically apply in every area of Wales.
How much is the Wales Visitor Levy?
The higher rate is £1.30 per person per night for most visitor accommodation. A lower 75p rate applies principally to shared hostel-style accommodation and tent pitches.
Do holiday cottages pay the £1.30 rate?
Yes. Self-catering holiday cottages and most holiday lets fall within the higher £1.30 per person per night rate where the levy applies.
Do static caravans pay the Visitor Levy?
Static caravan accommodation and caravan or motorhome pitches generally fall within the higher £1.30 rate where the local Visitor Levy applies.
Do glamping pods pay the Visitor Levy?
Yes. A booked glamping pod, shepherd's hut or similar specific accommodation unit generally falls within the £1.30 higher rate.
Are children exempt from the Visitor Levy?
Children under 18 are exempt when staying in accommodation subject to the 75p lower rate. The exemption does not apply in the same way to the £1.30 higher rate used by most holiday lets.
Does the owner have to charge the guest?
No. The provider is liable to the Welsh Revenue Authority but can choose whether to pass the cost on to visitors or absorb it within the business.
Does every council in Wales have to introduce the levy?
No. The levy is discretionary. Each council decides whether to introduce it following consultation and the required decision-making process.
When does Cardiff's Visitor Levy start?
Cardiff's Visitor Levy starts on 1 April 2027. Transitional rules mean Cardiff providers begin accounting for relevant future bookings from 28 September 2026.
Is the Visitor Levy the same as registering my holiday let?
No. Visitor accommodation registration is a separate Wales-wide requirement. The Visitor Levy only applies where a council chooses to introduce it.
Related Holiday Let Owner Guides
Keep Up With Holiday Let Changes in Wales
Welsh visitor accommodation rules are changing quickly. The Holiday Lets Wales owners section brings together practical information on registration, Visitor Levy, business rates, planning, safety and running holiday accommodation in Wales.