Hawaii lawmakers pass bill raising state's hotel tax for visitors

A trip to Hawaii is about to get even more expensive for travelers in an attempt to preserve the islands’ future.

Hawaii lawmakers have passed a first-of-its-kind bill to raise the tax on hotel stays and other vacation rentals, specifically to fund efforts to fight climate change. Senate Bill 1396 was unanimously passed in the Senate on April 25. On May 2, the House of Representatives overwhelmingly voted in favor of the bill. Gov. Josh Green is expected to sign the bill. 

“Our residents and communities deserve to be protected,” state Rep. Adrian K. Tam said at Friday’s adjournment. “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.” 

The hotel tax is slated to jump from 9.25% to 11% beginning January 2026, specifically to combat climate change, according to the bill. Lawmakers say the increase will generate between $85 million and $100 million a year. Funding from the tax will be used to prevent effects from climate change like coastal erosion, flooding and wildfires, factors that many regions across Hawaii are vulnerable to, Tam said at Friday’s meeting. The tax would also apply to tourists visiting the islands via cruise ships. 

Green has long been in favor of charging a $50 fee from tourists to enter the state, but various versions of the bill that have included a flat fee have died, since some lawmakers said it would violate the constitution’s protections for free travel, according to the Associated Press. Increasing the lodging tax was a compromise. 

Hawaii is the first state in the nation to set aside tax revenue for the purpose of protecting the environment from the effects of climate change.