California Joins Hawaii, New York and Other States in Implementing New Accommodation Taxes to Boost US Tourism Revenue This Year: New Update You Need To Know

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July 18, 2026 5:22 PM

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California joins Hawaii, New York and other states in implementing new accommodation taxes to boost US tourism revenue this year as local governments reshape visitor tax systems to capture a greater share of tourism spending. The new measures focus on modernising accommodation tax collection, expanding contributions from hotels and short-term rentals, and directing funds towards infrastructure, environmental protection, community development and destination improvements. From Los Angeles’ updated online booking tax rules to Hawaii’s sustainability-focused Green Fee and New York’s expanded lodging tax framework, these changes reflect a growing US tourism strategy that ensures visitors contribute to the long-term resilience, competitiveness and sustainable growth of popular travel destinations.

Los Angeles, California: New Accommodation Tax Rules Aim to Capture More Tourism Revenue Without Raising Base Hotel Taxes

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Los Angeles is reshaping how it collects accommodation taxes as the city prepares for a surge in visitors ahead of the 2028 Olympic and Paralympic Games. Although voters rejected Measure TT, which would have increased the city’s hotel tax from 14% to 16%, they approved Measure TC, requiring online travel platforms to calculate and remit taxes based on the full retail room price rather than discounted wholesale rates. The change is expected to generate millions of dollars in additional annual revenue while keeping the base tax unchanged for traditional hotel bookings. City leaders say the extra income will help strengthen public finances as tourism grows, while also ensuring digital booking platforms contribute fairly. The move reflects Los Angeles’ broader strategy of modernising tourism taxation without discouraging visitor demand.

San Luis Obispo is demonstrating how accommodation taxes can directly support local communities while sustaining a thriving tourism economy. The city continues to collect a 13.5% transient occupancy tax, with all revenue flowing into its General Fund rather than a dedicated tourism marketing programme. As visitor numbers remain strong, accommodation taxes paid entirely by tourists are helping finance essential public projects without increasing the tax burden on residents. Current investments include bridge replacement programmes, road resurfacing, neighbourhood infrastructure improvements and expanded fire and emergency medical services. City officials view tourism-generated tax revenue as an important financial resource that supports long-term community development while maintaining San Luis Obispo’s reputation as one of California’s most attractive destinations for leisure and regional travel.

Hawaii: New Green Accommodation Tax Strengthens Sustainable Tourism Investment

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Hawaii has introduced one of the United States’ most ambitious accommodation tax reforms by increasing its state Transient Accommodations Tax from 10.25% to 11% from January 2026. Widely known as the state’s new “Green Fee”, the additional charge is designed to ensure tourism directly contributes to protecting the islands’ fragile natural environment. Combined with county-level accommodation surcharges, visitors in some destinations may now pay hotel-related taxes approaching 14% of their accommodation bill. State officials estimate the measure will generate around US$100 million annually, funding climate resilience projects, coastal protection, wildfire recovery, conservation initiatives and environmental infrastructure. Rather than discouraging tourism, Hawaii is positioning the tax as a long-term investment that helps preserve the natural landscapes and beaches that continue to attract millions of visitors each year.

Saratoga Springs and Saratoga County, New York: Expanding Accommodation Taxes to Include Short-Term Rentals

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Saratoga Springs and Saratoga County have significantly expanded their accommodation tax system by bringing thousands of short-term rental properties into the local lodging tax framework. Through the introduction of a mandatory Short-Term Rental Registry and changes to state legislation, Airbnb, Vrbo and other smaller rental operators are now required to collect the full 8% combined lodging tax, closing exemptions that previously excluded many properties. Local officials believe the broader tax base will generate additional revenue while creating a more level playing field between traditional hotels and private rentals. Funds raised through the expanded accommodation tax are expected to support infrastructure improvements, tourism facilities and economic development projects as the region continues to benefit from record visitor numbers and growing investment.

Accommodation Taxes Become a Powerful Tool Driving America’s Tourism Future

Accommodation taxes are becoming an increasingly important source of revenue for tourism destinations across the United States as local governments seek new ways to balance rising visitor numbers with growing infrastructure and environmental needs. Rather than relying solely on residents to fund public services, many cities and states are introducing or expanding hotel, resort and short-term rental taxes so that visitors contribute directly to the destinations they enjoy. Revenue generated from these taxes is being invested in road improvements, public safety, beach preservation, climate resilience, tourism infrastructure, destination marketing and community development. At the same time, governments are closing tax loopholes involving online booking platforms and short-term rentals to create a fairer accommodation tax system. As tourism continues to grow, accommodation taxes are increasingly viewed not only as a source of public revenue but also as a long-term investment in maintaining sustainable, competitive and resilient travel destinations across the United States.

Accommodation Tax Changes Across Key US States (2026)

Summary of 2026 Accommodation Tax Trends

California joins Hawaii, New York and other states in implementing new accommodation taxes to boost US tourism revenue this year, as governments modernise lodging tax systems, expand visitor contributions, support infrastructure and sustainability projects, creating a new update for travellers.

In conclusion, California joins Hawaii, New York and other states in implementing new accommodation taxes to boost US tourism revenue this year as destinations modernise visitor contribution systems to support long-term tourism growth. These new measures help fund infrastructure, sustainability initiatives, environmental protection and community development while ensuring travellers contribute fairly to the destinations they visit. This new update highlights how accommodation taxes are becoming a key tool for strengthening the future of US tourism.