The Most Expensive Cities in the World for Tourist Taxes

Whether you’re planning a weekend city break in Europe or an extended stay further afield, it has never been more important to know exactly how much tourist tax you’ll need to pay. 

So, to help travellers navigate these somewhat hidden costs, our team at Holidu has made it all the simpler and created a comprehensive guide that highlights the tourist taxes in different cities worldwide. 

We’ve also revealed which cities around the world have the most expensive tourist taxes, alongside a handy calculator at the bottom that helps you work out exactly how much tourist tax you’ll have to pay in your chosen city destination!

1. Los Angeles, USA

Coming in as the most expensive city for tourist taxes is Los Angeles. This California dream destination sees visitors flock year-round to experience its sandy beaches and vibrant nightlife, but what many may not know is that the city imposes a substantial 15.5% tax on total accommodation bookings!

For an average-priced holiday rental at £205 per night in the city, this translates to an additional £31.78 in tourist tax each day, which could add as much as £200 to a week-long holiday. If you plan to visit the City of Angels, you’ll want to budget in the cost of this tax.

2. New York City, USA

The U.S.’s ‘Big Apple’ takes second place in the rankings of the most expensive tourist tax cities, with its combination of a $3.50 per person nightly fee alongside a 14.75% tax on total bookings. For an average holiday rental in the city priced at £195 per night, tourists can expect to pay approximately £31.46 in taxes each day.

As one of the most popular tourist destinations in the U.S., this is a great way for New York to generate revenue from the 60 million tourists that visit the city each year to support its infrastructure and services, keeping its wheels turning year-round for globe-trotting tourists.

3. Washington D.C, USA

Another U.S. destination to make the top five ranking, the country’s capital of Washington D.C comes in third place, as it imposes a 14.95% tax on accommodations, resulting in an average nightly tax of £30.65 on a typical rental priced at £205 per night.

Many travellers are happy to pay the cost though, given the city’s iconic landmarks and plethora of cultural attractions like the White House and the Washington Monument, to name but a few.

And it’s this larger tourist tax fee that helps maintain these Washington world-class attractions and sights, many of which offer free admission to visitors. Some might say, therefore, that the added tourist tax is a worthwhile investment for the city’s accessible attractions.

4. Las Vegas, USA

The entertainment capital of the world takes fourth place in the rankings with its 13.38% accommodation tax, which adds approximately £25.56 to the nightly cost of an average £191 a night holiday rental.

Known for its world-class casinos, exceptional shows, and extensive entertainment, Las Vegas puts its tourist taxes to good use to fund its education, tourism promotion, and infrastructure, amongst other initiatives, helping it to further attract visitors and enhance its reputation as one of the world’s most thrilling destinations for a getaway.

5. Montreal, Canada

Rounding out the top five ranking is Montreal, Canada’s UNESCO City of Design, known for its exceptional innovation. The city imposes a 3.5% tax on accommodations priced over $30 per night.

While, compared to U.S. cities, this percentage may seem modest, it results in a notable £20.29 nightly tax on an average £71 per night accommodation, which is what proportionally makes it one of the highest tax rates in the ranking.

Tourists should know that the tourist taxes in this city go towards the Tourism Partner Fund, helping to support and promote the wider province of Quebec’s tourism industry, making them a worthwhile investment.

Destinations Set to Introduce New Tourist Taxes

While several cities around the world have long enforced a tourist tax, there are some which are only just considering rolling one out for visitors as a way to support their local economy and reduce overtourism:

Edinburgh, UK

The capital of Scotland sees its fair share of tourists visiting for its historical significance and architectural beauty, and soon, travellers heading to Edinburgh will be expected to pay a tourist tax from 2026 onwards.

This will be a 5% levy on various overnight accommodations in the city, which will be capped at five nights in a row, according to Edinburgh Council. With the levy in place, this is expected to increase to £50 million a year, which the city will invest in supporting, enhancing, and protecting Edinburgh’s worldwide appeal as a place to visit and live.

Thailand

Thailand is also considering introducing a tourist tax before the end of 2025. Set to be as much as 300 baht, or £6.84, this one-off fee will be enforced for those entering the country by air, land, or sea.

The tax will fund the country’s tourism-related infrastructure, as well as insurance for tourists, but the full details are still being finalised. The costs are planned to be integrated into Thailand’s Digital Arrival Card (TDAC) too, which will be launching at the beginning of May 2025.

Want to know how much tax you’ll pay?

Heading on holiday soon and curious about how much tax you’ll need to pay in your chosen destination? Well, use our handy calculator to work it out.

Simply choose your city, the number of nights you’re staying and the price of your accommodation per night.

The Different Types of Tourist Taxes

From our research, we’ve revealed several main approaches to tourist taxation in cities around the world, so you can better wrap your head around this topic:

• Percentage-based fees: This is common in North American cities and requires tourists to pay a percentage of their total accommodation costs as a tax for their stay.
• Flat-rate: Common in European countries, tourists will be charged a flat fee every night that they stay in an accommodation.
• Tiered system: Building on the flat-rate system highlighted above, it’s common for tourists to pay different amounts of tourist tax per night depending on the type of accommodation they’re staying in. For example, those staying in a 2* hotel will pay less tourist tax per night compared to those staying in a 5* hotel.
• Seasonal variation: Some destinations offer seasonal variations when enforcing their tourist tax. For example, during the most popular tourist seasons, both Palma de Mallorca and Venice enforce their tiered tourist tax system.
• One-time payment: Some destinations will charge a tourist tax on entry into the country as a one-time visitor fee, such as Cancún in Mexico.

Methodology

We took a list of Euromonitor’s latest ‘top 100 city destinations’ and used official and reputable sources to find out the tourist tax in each city.

For cities charging multiple taxes on accommodation, including GST (Goods & Service Tax), PST (Provincial Sales Tax), only the figures relating to a specific ‘tourist tax’ (or ‘transient visitor levy’ or ‘occupancy tax’) were included.

For the tourist tax price ranking, cities with a tax percentage were assigned a rental property price based on KAYAK’s average weekend night rate.

When tourist taxes were dependent on the star rating of accommodation, prices were taken from 3-star accommodation.

Where taxes depend on seasonality, the high season figure has been used.

Figures are correct as of April 2025. Tourist tax figures are correct to the best of our knowledge.