Hawaii hikes tourism tax to fund climate and environmental projects

According to the Associated Press (AP), the new legislation adds a 0.75% surcharge to the existing state tax on hotel rooms, timeshares, holiday rentals, and other short-term accommodations. It also introduces an 11% tax on cruise ships, based on the number of days the vessels remain in port.

Hawaii already imposes a 10.25% tax on short-term rentals. From 1 January 2026, this will rise to 11%. In addition, Hawaii’s counties levy a separate 3% lodging tax, and travellers must also pay the state’s general excise tax of 4.712%, which applies to virtually all goods and services.

The total tax rate at checkout will increase to 18.712%, placing Hawaii among the highest in the United States for visitor taxation.