Nearly 75 percent of residents who took part in a local referendum voted against the idea of introducing the plan, which was based on London's controversial tax brought in two years ago. Edinburgh City Council posted ballots to about 290,000 residents, asking them whether they would support a proposed two pounds per vehicle charge to drive in the city centre on weekdays.
The council had predicted the scheme would raise 760 million pounds over 20 years, which would have been spent on transport improvements.
Of the 179,905 people who responded to the ballot, 133,678 were against the charge, while 45,965 voted "yes" -- a rejection of 3 to 1.
"We advocated the scheme because we thought that congestion charging was in the best interests of the city, but we will respect the choice made by Edinburgh residents," said city council chief Donald Anderson.
London mayor Ken Livingstone introduced a congestion charge in February 2003, winning applause from environmentalists but criticism from local businesses who said trade was being driven away.