May 29, 2025

Hawaii’s new tax on hotel stays and cruise cabins will generate $100 million annually to fund environmental protections and climate disaster preparedness starting in 2026.

Hawaii made history Tuesday, becoming the first U.S. state to implement a “Green Fee,” which will charge visitors an additional tax to help protect the state’s environment and build resilience against climate disasters.

The policy will increase the state’s transient accommodations tax (TAT) by 0.75%, bringing the total rate to 10%. The fee will apply to hotel stays, short-term rentals, and, for the first time, cruise ship cabins. It is projected to generate approximately $100 million annually beginning in 2026.

“Today Hawaii ushers in the first Green Fee in the nation. Once again, Hawaii is at the forefront of protecting our natural resources, recognizing their fundamental role in sustaining the ecological, cultural and economic health of Hawaii,” Governor Josh Green said at the signing ceremony.

The bill emerged following the 2023 wildfires that decimated Lahaina and many other parts of Maui. In 2024, Governor Green established the Climate Advisory Team, led by Chris Benjamin, to develop community-informed policy recommendations for climate resilience funding.

Source: Hawaii to become first state to charge visitors a climate fee

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