Hawaii Introduces Climate Change Hotel Tax: What Travelers Need To Know

Travelers heading to Hawaii will start paying more for accommodations beginning in 2026.

Lawmakers passed a first-of-its-kind bill to raise the tax on hotels, cruises, and vacation rentals to fund efforts to fight climate change.

Hawaii continues to balance being a tourist destination while battling overtourism. It is also extremely susceptible to coastal erosion, flooding, wildfires, and other climate-related events.

Let’s look at the details of the bill that is expected to be signed into law.

Hawaii’s 11% Hotel Tax

Hawaii is expected to pass a new law increasing the state’s current hotel tax to 11% starting in January 2026, as reported by One Mile at a Time.

The tax will apply to cruises (pro-rated), hotel rooms, timeshares, vacation rentals, and other short-term accommodations. Currently, the hotel tax is 9.25%, so the new tax represents a 1.75% increase.

Initially, lawmakers wanted to charge a $50 fee for tourists to enter the state, but that didn’t get enough support. The 1.75% increase is likely incremental enough to not dissuade would-be visitors from heading to the already notoriously expensive destination. However, it’s expected to generate between $85 million and $100 million annually to fight climate change.

Our residents and communities deserve to be protected. As we continue to invite visitors to Hawaii to share the beauty of this land, this bill is a huge step in ensuring adequate funding is set aside to steward and protect our delicate ecosystems for visitors, our constituents, and communities for generations to come.

Adrian K. Tam, State Representative

The money generated is expected to be used for projects like replenishing the eroding beach in Waikiki, hurricane preparation, and removing invasive plants similar to the grasses that fed the Maui wildfires in 2023.

How To Save on a Hawaiian Vacation

Many people’s bucket lists include a vacation to Hawaii, and shortly after, they often add it to their “I can’t wait to go back” list because of its beauty and culture.

However, compared to alternatives, Hawaii is an expensive destination when factoring in flights, hotels, and food.

The good news is that the $50 per person fee isn’t happening, as that would have been a hefty price to pay for families, especially. And the 1.75% increase may not even apply to you, depending on how you booked your accommodations.

For example, World of Hyatt and Hilton Honors properties do not charge resort fees or taxes on award stays, as they are included with the redemption cost. So if you booked your stay with points (and didn’t bill anything to your room), you would pay $0 at checkout.

Alternatively, if you booked with Marriott Bonvoy, you would still be responsible for the resort fee, and the local taxes would be added to that.

For example, I stayed at the Hilton Waikoloa Village on points, and the resort fee and taxes were waived. Meanwhile, I paid over $200 in taxes and fees at the Sheraton Waikiki in Honolulu. So book carefully!

Final Thoughts

Hawaii will soon add a new tax that will increase the total hotel tax rate to 11% for guests.

This represents a 1.75% increase compared to the current rate, so many visitors won’t notice a significant impact on their vacation budgets. However, the proceeds will go towards fighting climate change and keeping Hawaii and its residents safe.

And depending on how you book, you might not need to pay anything at all.