The state of Hawaii has increased the tax charged to all incoming visitors to the Aloha State from 10.25 percent to 11 percent, with the additional revenue to be used to protect Hawaii’s fragile environmental resources.
Hawaii: Building Resiliency Now
The increase in the transient accommodations tax (TAT), signed into law by Hawaii Gov. Josh Green last June, went into effect on Jan. 1. It will apply to all stays in hotels and vacation rental properties.
“As an island chain, Hawaii cannot wait for the next disaster to hit before taking action,” Green said at the time. “We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”
The state also intends to charge an 11 percent fee on all arriving cruise ship passengers, based on the overall price paid per cabin, but pro-rated for the time ships spend in Hawaiian waters. The cruise tax was also scheduled to take effect on Jan. 1, 2026, but is currently on hold pending the outcome of a lawsuit filed by the trade group Cruise Lines International Association (CLIA). A federal judge put a temporary hold on the tax’s implementation until the CLIA case—which claims the tax is unconstitutional—is resolved.
About 10 million people visit Hawaii each year. Depending upon where they visit, some tourists could pay even more to stay in Hawaii: the law also allows local municipalities to charge up to an additional 3 percent on top of the state tax.
The state Green Fee is expected to raise about $100 million annually for environmental stewardship, hazard mitigation and sustainable tourism, officials estimated. Awareness of the impact of climate change on Hawaii has surged after the 2023 wildfires that devastated the Lahaina area of Maui, killing more than 100 people and causing in excess of $5.5 billion in property damage.
