Hawaii Joins California, Minnesota, New York, Colorado, and More in Implementing Historic Tourism Tax Increases for 2026: What Every Traveler Needs to Know Before Booking

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Tourism in the U.S. is evolving, and in 2026, five major travel destinations will implement new taxes aimed at enhancing local infrastructure, preserving environmental resources, and improving the visitor experience. From Hawaii’s environmental-focused “Green Fee” to California’s city-specific lodging tax increases, these changes will directly impact travelers. But, what does this mean for your vacation plans? Here’s a breakdown of what’s coming in Hawaii, Minnesota, Colorado, New York, and California.

Hawaii’s “Green Fee” and Transient Accommodations Tax Increase

Starting 1 January 2026, Hawaii will raise its Transient Accommodations Tax (TAT) by 0.75 percentage points, increasing it to 11% for hotel stays, vacation rentals, and cruise ship accommodations. This increase, referred to as the “Green Fee,” is part of a wider initiative to fund environmental sustainability projects, climate resilience, and infrastructure improvements across the islands. The new tax will directly benefit Hawaii’s ability to maintain its natural beauty and enhance the overall tourism experience.

Hawaii’s stunning landscapes, from pristine beaches to majestic volcanoes, attract millions of visitors annually. However, this influx of tourism places a heavy strain on the environment. The Green Fee will help fund crucial projects such as shoreline restoration, wildfire mitigation, and other environmental safeguards to ensure that future generations can continue to enjoy the state’s natural wonders. For tourists, the small increase in lodging costs is a direct contribution to preserving the very attractions that make Hawaii so special.

Minnesota’s New Lodging Tax in Faribault and Richfield

Minnesota is making strides to improve its tourism offerings by introducing a 3% lodging tax in Faribault and Richfield starting 1 January 2026. These two cities, nestled in the heart of Minnesota, are popular for their historic downtown areas, outdoor parks, and recreational opportunities. The revenue generated from this new tax will go towards enhancing local tourism infrastructure and supporting local businesses that cater to visitors.

Both Faribault and Richfield are working to elevate their tourism profiles, with plans to improve lodging facilities, enhance public services, and promote the cities as attractive destinations for both leisure and business travelers. Visitors will likely notice improvements in transportation, expanded attractions, and new events funded by the tax. For tourists, this tax represents a small fee to contribute to the growth and development of these cities as premier travel spots in Minnesota.

Eagle County, Colorado – A Local Lodging Tax Increase

In Eagle County, Colorado, a proposal is on the ballot for voters to approve a doubling of the local lodging tax from 2% to 4%, effective 1 January 2026. While this increase is subject to voter approval, it reflects the county’s ongoing commitment to improve services and infrastructure for its tourism-dependent economy.

Eagle County is home to some of the most sought-after ski resorts and outdoor recreation areas in the U.S., including Vail and Beaver Creek. These resorts attract thousands of visitors each year, making tourism a critical economic driver for the region. The additional tax revenue will be earmarked for public safety, workforce development, and tourism marketing. It will also help fund vital infrastructure improvements, including transportation systems and community services. For tourists, this tax hike is a small contribution to maintaining and improving the high-quality experience that draws visitors to Colorado year-round.

Saratoga County, New York – Hotel Occupancy Tax Boost

In Saratoga County, New York, the local hotel occupancy tax will increase from 1% to 3% starting 1 January 2026. Saratoga County, home to the famous Saratoga Springs Racetrack, draws visitors for its rich history, world-class horse racing, and breathtaking natural beauty. With this tax increase, local authorities aim to expand their tourism marketing efforts, enhance public services, and improve the overall visitor experience.

Saratoga County is known for its picturesque parks, historic architecture, and a growing cultural scene. The increased revenue will go directly towards funding improvements in tourism infrastructure, ensuring that the area can accommodate increasing numbers of visitors. The extra tax will help preserve the county’s heritage while maintaining its status as a year-round destination. For travelers, this tax change means a slight increase in the cost of accommodations, but the benefits are clear—better services, more events, and an enhanced visitor experience.

California – San Diego and Beyond See Transient Occupancy Tax Increases

California has long been a leader in tourism revenue generation, and several cities are preparing for transient occupancy tax (TOT) increases in 2026. Notably, San Diego and other local jurisdictions are implementing rate hikes to fund tourism promotion, public safety services, and infrastructure development. Starting in 2026, some areas in California will see TOT rates rise by up to 2%, bringing the total tax rate for hotels and short-term rental properties to new levels.

San Diego, with its gorgeous beaches and world-class attractions like Balboa Park and the San Diego Zoo, continues to attract millions of visitors every year. The increased TOT will help support the city’s transportation systems, cultural programming, and tourism-related facilities. The same is true for other cities across the state, where increased revenues will fund improvements to public spaces, enhance visitor amenities, and promote sustainable tourism. This small tax increase will help maintain California’s position as a leading global tourism destination while keeping services top-notch for visitors.

The Bigger Picture: Why These Tax Changes Matter

The tax changes in Hawaii, Minnesota, Colorado, New York, and California represent a broader trend in U.S. tourism policy—one that seeks to balance the economic benefits of tourism with the need for sustainable development. These new taxes are a direct response to the growing pressures placed on local communities and environments by increasing visitor numbers. As the demand for travel continues to rise, these regions are investing in tourism infrastructure, public services, and environmental protection to ensure that the destinations remain vibrant and sustainable.

For travelers, these changes may result in slightly higher accommodation costs, but the benefits are clear. From improved public services and enhanced visitor experiences to better-maintained landmarks and more eco-friendly tourism practices, these tax increases will help elevate the quality of tourism for years to come.

Conclusion: A Small Price for Long-Term Benefits

As tourism tax rates rise in Hawaii, Minnesota, Colorado, New York, and California, travelers will see a modest increase in accommodation costs, but the advantages of these changes will be felt across the board. These new taxes will directly fund projects that improve services, promote sustainability, and preserve the attractions that make these destinations so special.

Ultimately, these efforts are about ensuring that the U.S. remains one of the most desirable tourist destinations in the world while addressing the challenges posed by overtourism. By contributing to these vital initiatives, tourists will be playing a role in the preservation and enhancement of the places they love to visit, making their travels even more meaningful.