If you’re planning a trip to Hawaii, your hotel and/or cruise bill will cost a bit more starting from January 1, 2026.
On Friday, Hawaiian lawmakers passed new legislation to increase the state’s lodging taxes in an effort to raise more money for environmental protection and natural disaster preparedness.
The tax, which is being dubbed the “Green fee”, is expected to bring in up to $100 million yearly, and is being put in place following the 2023 Hawaii wildfires. These fires resulting in the loss of 102 lives, with damages estimated to be around $5.5 billion.
In a statement, Governor Josh Green, M.D. said:
“This legislation, which I intend to sign, is the first of its kind in the nation and represents a generational commitment to protect our ‘āina. Hawai‘i is truly setting a new standard to address the climate crisis, and I want to thank lawmakers for their unrelenting work these past two years in bringing this to fruition,”
Hotel taxes up 0.75%
Staying on the Hawaiian island chain isn’t cheap as it stands. Besides the dreaded resort fee which many hotels charge in popular tourist towns, guests have to deal with the highest (combined) hotel tax rates across the United States, totaling almost 18%.
Starting January 1, 2026, the new legislation will bump the State Transient Accommodations Tax (TAT) from 10.25% to 11%, bringing the total combined taxes from 17.962% to 18.712%.
This increase will affect all lodging, meaning that hotels, and all short-term rentals such as VRBOs and Airbnbs, will be subject to the tax hike.
Realistically, it’s not that drastic of an increase. If you were already planning to spend money to vacation on the Hawaiian island chain, the tax increase will only bump your bill up by a few dollars depending on how much you spend. Here is a quick example.
| Before Jan 1, 2026 | After Jan 1, 2026 | |
|---|---|---|
| Base trip room cost | $2,000.00 | $2,000.00 |
| State TAT | $205.00 | $220.00 |
| County TAT | $60.00 | $60.00 |
| General Excise Tax (GET) | $94.24 | $94.24 |
| Total | $2,359.24 | $2,374.24 |
| Difference | +$15.00 |
New 11% cruise tax
Cruise ship passengers visiting any of the Hawaiian islands will be subjected to a new 11% tax. However, this tax will be prorated based on the number of days the ship docks at any Hawaiian port.
Let’s use an example of a cruise that is 12 nights long at $100 per night. Assuming the cruise only spends three days docked at various Hawaiian ports, the 11% will only be applied to those three days, totaling $33 in taxes ($100 x 3 x 11%), rather than 11% of the entire $1,200.
Protecting the environment
The tax will be split three ways, funding natural resource management, climate-related disaster mitigation and mitigating tourism impacts on the natural environment.
Revenue from this tax will support projects such as beach restoration, coral reef protection, wildfire prevention, and infrastructure improvements to better withstand climate change impacts.
Hawaii lawmakers introduced this measure in response to rising tourism pressures and growing environmental degradation across the islands. The goal is to shift part of the financial burden away from residents and toward tourists, while preserving the state’s unique ecosystems for future generations.
