Hawaii Just Raised Its Tourism Tax-Here's What It Means for Travelers

"It just got more expensive to stay on the Hawaiian islands thanks to a tax increase affecting accommodations across the state. On Jan. 1, Hawaii raised the statewide Transient Accommodations Tax (TAT) from 10.25 percent to 11 percent with each county able to also impose an extra 3 percent tax on top of that. The state's Gov. Josh Green has dubbed the increase a "green fee" with the goal of building climate change resiliency."

"As part of the expansion of the TAT, Hawaii had planned on taxing cruise ships that port in the state for the first time. However, that part of the new law was put on hold following a lawsuit from the cruise industry. A spokesperson from the Hawaiʻi Department of the Attorney General told Travel + Leisure they were "aware" of an injunction issued by a federal appeals court concerning the tax on cruise ships,"

Hawaii increased the statewide Transient Accommodations Tax (TAT) from 10.25% to 11% effective Jan. 1, with counties permitted to add an additional 3% tax. The measure is branded a 'Green Fee' aimed at financing climate change resiliency and is projected to generate $100 million annually for the state. The expansion originally included a new tax on cruise ships that dock in Hawaii, but implementation of that portion was paused after a lawsuit from the cruise industry. The Hawaii Department of the Attorney General said officials are aware of a federal injunction and remain confident about the law's legality.

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