In the event you’re planning to set sail to Hawaii on a cruise subsequent yr, your room and board charges might be larger because of a brand new tourism tax.
Hawaii is slated to impose a so-called “inexperienced payment” tax subsequent yr, which can affect the nightly lodging fees for inns and trip leases. The payment, designed to mitigate local weather change within the Aloha State, may affect as many as 300,000 cruise ship passengers yearly.
That’s as a result of for the primary time, the levies will even goal cruise ships docking in Hawaii ports.
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Opponents of the proposed 2026 Hawaii tourism tax argue that the extra fees may deter vacationers from reserving cruises to the islands. They counsel that guests may select different locations for important life occasions like weddings, household holidays, retirements, and honeymoons.
Earlier than the tax kicks in, some opponents are taking authorized motion.
Cruise Strains Worldwide Affiliation filed a criticism on Aug. 27, arguing that the local weather affect charges imposed on cruise ships violate federal legislation in 3 ways — conflicting with the Tonnage Clause of the U.S. Structure, freedom of speech protections, and federal navigation legal guidelines.
In the meantime, the state counters that the “inexperienced tax” imposed on vacationers’ nightly lodging lodging will fund needed local weather and conservation initiatives, that are “vital” to the well being and security of locals and guests.
Right here’s what you could learn about Hawaii’s deliberate tourism tax, and the way it might affect your 2026 trip.
What’s Hawaii’s tourism tax?
Hawaii’s new “inexperienced payment” tax, slated to take impact in 2026, expands the transient lodging tax (TAT) charged in your nightly lodging at a lodge or trip rental. For the primary time, the levies will even goal cruise ships that port within the Aloha State.
The tax, as reported by Kiplinger, goals to create a constant funding supply for conservation and rebuilding initiatives in Hawaii.
The measure (Act 96) was signed into legislation by Hawaii Gov. Josh Inexperienced this spring and raises the TAT by 0.75% to 11% starting in 2026. In 2027, the payment is predicted to extend once more to 12%.
That’s not all, Hawaii’s 4 counties can add an additional tax on high of the state TAT. All of them have determined so as to add the utmost attainable, which is one other 3%. General, vacationers might be charged a complete tax of 14% per nightly lodging subsequent yr.
In accordance with the governor’s workplace, the inexperienced payment is projected to generate $100 million yearly. As talked about, the measure will fund initiatives together with environmental stewardship, local weather and hazard resiliency, and sustainable tourism.
For extra info: Hawaii Approves First-of-its-Variety ‘Inexperienced Payment’ for Vacationers.
Cruise operators and native companies problem Hawaii tourism tax
Hawaii’s new local weather affect tax would impose nightly lodging charges on cruise ships as excessive as 14% beginning subsequent yr.
(Picture credit score: Getty Photographs)
A brand new lawsuit challenges Hawaii’s expanded transient lodging tax, with a significant cruise trade group and native tourism companies claiming the measure is unconstitutional.
Opponents of the tax search to stop the so-called “inexperienced payment” from taking impact in 2026.
The plaintiffs, led by Cruise Strains Worldwide Affiliation, a world advocacy group representing most cruise traces, observe the legislation would additionally authorize Hawaii counties to gather a further 3% surcharge, bringing the entire tourism tax to 14%.
- Gov. Inexperienced says the payment will translate to guests paying a further $3 per evening on a $400 room keep in a Hawaii lodge, cruise ship, or different rental trip lodging.
- You could wish to preserve that in thoughts if you happen to’re planning to ebook a preferred journey just like the Hawaii Disney Cruise Line journey for you and your family members subsequent yr.
One of many primary issues of these difficult Hawaii’s new inexperienced payment tax is that the brand new cost might “trigger many potential guests to trip elsewhere.”
In accordance with the lawsuit, the cruise trade brings in hundreds of holiday makers to Hawaii annually, supporting hundreds of native jobs and contributing to an annual financial progress of over $600 million.
The plaintiffs argue that the brand new tax may have a “devastating” affect on cruise ship operators and native companies.
As reported first by the Related Press, the plaintiffs are looking for a preliminary injunction to declare Act 96’s cruise-related provisions unconstitutional and block its enactment on January 1, 2026.
If they’re profitable in blocking the measure, that would doubtlessly save vacationers a few hundred {dollars} in trip taxes subsequent yr.
“No different State imposes comparable charges — and for good motive,” wrote attorneys representing the Cruise Strains Worldwide Affiliation in a movement, the AP reported. They added that ports shouldn’t be utilized by states for their very own “revenue-raising pursuits.”
The defendants, which embody state and county finance officers and the Hawaii Division of Taxation, have but to launch a press release on the pending litigation.
For now, keep tuned for developments as we cowl how this will likely affect your journey plans to the Aloha State subsequent yr.
