How much is the tourist tax in Palermo and who is exempt?

Introduced in Palermo in 2014, the tourist tax was established to fund initiatives aimed at supporting tourism, as outlined in Article 4 of Legislative Decree 23/2011. The tax applies to all non-residents staying overnight in accommodation facilities within the city limits. Payment is mandatory for hotels, bed and breakfasts, holiday homes, guesthouses, short-term lets, and all other tourist accommodation types recognised by regional legislation. Over the past three years, revenue from the tax has risen significantly, increasing from €3.6 million in 2022 to €8.5 million in 2024.

How much you pay: new tourist tax rates in Palermo

The tourist tax in Palermo has been revised, with the new rates approved on 30 April 2025 and set to take effect from 1 July 2025. The amount payable depends on the category of accommodation:

• 1-star hotel: €3 per night
• 2-star hotel: €3.50 per night
• 3-star hotel: €4 per night
• 4-star hotel: €4.50 per night
• 5-star or luxury hotel: €5 per night (rate unchanged)
• B&Bs and short-term rentals: €4 per night

The tax applies for a maximum of four consecutive nights, regardless of the length of the overall stay. It is collected directly by the accommodation provider and must be transferred to the Municipality of Palermo within 15 days of the end of each quarter, using the PagoPA system or the F24 form (tax code 3936).

Who is required to pay the tourist tax in Palermo

The tourist tax applies to all individuals who are not residents of the Municipality of Palermo and who stay in any type of accommodation facility, including short-term rentals. This includes:

• Italian and international tourists
• Business and work travellers
• Attendees of events or conferences
• Guests staying in holiday homes or guesthouses

Accommodation providers are required to issue a receipt for the amount paid by the guest.

Who is exempt from paying the tourist tax in Palermo

Not everyone is required to pay the tourist tax. Article 7 of the Municipal Regulations outlines exemptions for certain categories, which may vary slightly depending on the municipality’s annual resolutions. In general, the following are exempt:

• Residents of the Municipality of Palermo;
• Children under the age of 12;
• Individuals accompanying patients admitted to local healthcare facilities;
• Certified disabled persons and one accompanying person;
• Drivers of tourist coaches and group leaders travelling with at least 25 people;
• Members of the armed forces and police forces on official duty;
• Guests staying in accommodation facilities affiliated with the municipality for housing or social emergencies;

In all cases, exemptions must be declared using the appropriate form, which should be submitted to the accommodation provider at the time of check-in.

Article translated by Agnese Giardini

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Institutions and Businesses

Travel

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