Hawaii becomes 1st state to tax tourists for climate change

Hawaii Gov. Josh Green enacted legislation on May 27 establishing the country’s first tourist tax designed to fund climate resilience efforts, adding a 0.75 percentage point increase to lodging fees beginning Jan. 1, 2026.

The legislation, known as Act 96, boosts Hawaii’s transient accommodations tax to 11% for hotel guests and vacation rental visitors. Maritime tourists on cruise ships will face the levy for the first time in 2026, with charges calculated based on port stay duration. Travelers will also pay an extra $3 on a $400 nightly room rate.

State estimates suggest the climate change tax will yield $100 million per year for programs spanning fire prevention measures, technology improvements and responses to shoreline damage and non-native species threats.

The fee directly responds to Hawaii’s growing climate vulnerabilities, particularly following the devastating 2023 Maui wildfires that killed over 100 people and decimated Lahaina. “As an island chain, Hawaii cannot wait for the next disaster to hit before taking action,” Green said in a statement. The Climate Advisory Team, which was formed after the fires, identified securing funding for climate mitigation as a key priority.

The tax places Hawaii among destinations worldwide implementing tourist fees to address climate change and overtourism impacts. Unsurprisingly, it has also raised concerns. Hawaii Hotel Alliance President Jerry Gibson, for one, told Hawaii News Now, “I am extremely worried about getting too expensive for the people that come here to Hawaii.” Including county fees and general excise taxes, tourists now encounter total accommodation-related taxes nearing 19%, placing Hawaii among America’s most expensive destinations.