On Jan. 1, 2026, Hawaiʻi increased the statewide transient accommodations tax, or TAT, from 10.25% to 11%, with each county allowed to impose a surcharge of up to 3%.
Hawaiʻi Gov. Josh Green signed off on the increase in May 2025; the initiative establishes what state officials call the nation’s first climate impact fee, referred to as the “Green Fee.” According to the governor, the purpose of the charge is to build funding to address the impacts of climate change, and to support environmental stewardship and sustainable tourism.
“Once again, Hawaiʻi is at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural and economic health of Hawaiʻi,” Green said in a statement in May 2025. “As an island chain, Hawaiʻi cannot wait for the next disaster to hit before taking action. We must build resiliency now, and the Green Fee will provide the necessary financing to ensure resources are available for our future.”
Following Maui’s devastating wildfires in 2023, Green established the Climate Advisory Team, or CAT, to respond to the growing frequency and intensity of natural disasters across Hawaiʻi. A key recommendation from CAT was to establish a dedicated source of funding for climate change mitigation and disaster resilience. TAT was identified as a potential revenue source, and Green said the climate impact fee is projected to generate about $100 million per year for the state.
Hawaiʻi’s transient accommodations tax is imposed on rental proceeds from accommodations including hotel rooms, vacation homes and timeshare units rented for less than 180 consecutive days.
The original tax was intended to include cruise ships that port in the state. Following a lawsuit from the cruise industry, the part of the new law that applies to cruise ships is on hold for now.
The new Green Fee could account for up to 14% of a visitor’s hotel bill, depending on the county. In addition to TAT, operators of transient accommodations must also pay the Hawaiʻi general excise tax, or GET. Depending on the county, that GET ranges from 4% to 4.5% of a guest’s lodging bill. The GET is often passed to the guest as a separate charge. This brings the total potential accommodations tax for a visitor’s stay to close to 19%.
Hawaiʻi isn’t the only popular travel destination that’s increasing fees to help offset the impacts of tourism. In 2024, Venice, Italy, implemented a fee for day visitors during peak periods. The United Kingdom has also proposed adding a new tax on overnight stays in cities such as London and Manchester.
The governor’s office acknowledges that fees are not always the most popular way to raise revenue, but the charge ensures travelers also share in the kuleana, or responsibility, of environmental stewardship and sustainable tourism.
“I mahalo the tourism industry for stepping up and collaborating on this initiative, which will preserve Hawaiʻi for kamaʻāina and visitors alike,” said Green. “The fee will restore and remediate our beaches and shorelines and harden infrastructure critical to the health and safety of all who call Hawaiʻi home, whether for a few days or a lifetime.”
