How New York, Las Vegas, Miami, Orlando, and Honolulu Will Be Bombarding with Explosive Tourism Tax: Are You Ready to Take the Heat?

Written By: Somudranil Sarkar

Somudranil Sarkar

Somudranil Sarkar is a literary artist whose writing blends precision with imagination, delving deep into human emotions and societal constructs. As a writer, he crafts stories that breathe life into abstract ideas, creating worlds where language serves as both paint and canvas. As an editor, Sarkar shapes narratives that resonate globally, elevating writing beyond grammar to tell meaningful, profound stories. His work challenges readers to reflect, question, and understand the world more deeply. With his unique vision, Sarkar pushes boundaries, leaving a lasting imprint on both literature and the way we connect through words.

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October 11, 2025 6:12 AM

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As 2026 approaches, several U.S. states are set to introduce new tourism taxes or modify existing ones to generate revenue for environmental protection, infrastructure, and fiscal policies. These measures target international visitors and domestic travelers, aiming to make tourism a more sustainable and beneficial economic driver. Here’s a look at some key tourism-related taxes and changes expected in 2026 across various states.

1. Hawaii: Green Fee and TAT Increase

Hawaii, known for its stunning beaches and natural beauty, has long faced challenges in managing tourism’s environmental impact. In response, the state is introducing a new Green Fee as part of an increase in its Transient Accommodations Tax (TAT). Starting January 1, 2026, the TAT will increase by 0.75%, raising the total to 11%. This increase is part of the state’s efforts to fund climate resilience and environmental protection initiatives.

The funds generated by this fee will help combat issues like coastal erosion, wildfires, and the preservation of the island’s biodiversity. Hawaii’s governor emphasized that these measures are crucial to maintaining the islands’ natural beauty for future generations of tourists.

Additionally, Hawaii’s counties can impose up to a 3% lodging tax, while the state also applies the General Excise Tax (GET) at rates between 4% and 4.5%, depending on the island. These taxes are applicable to all visitors staying in hotels or other accommodations.

Moreover, cruise ship passengers will face an 11% tax on their bills, starting in July 2026. This tax will be prorated based on the number of days they spend in Hawaiian ports, providing an additional revenue stream for the state’s tourism efforts.

Hawaii’s new Green Fee reflects an evolving approach to tourism that seeks to balance economic growth with environmental sustainability. Travelers planning trips to Hawaii in 2026 should factor in these new taxes, which aim to support the state’s long-term preservation.

2. Florida: Shift in Use of Tourist Development Taxes (TDT)

Florida, one of the largest tourist destinations in the U.S., has also announced changes to its Tourist Development Tax (TDT) system. Starting January 1, 2026, Florida will shift how TDT revenues are utilized, which could affect local tourism infrastructure and services.

Historically, TDT has been used primarily for tourism marketing and promotional campaigns to attract visitors. However, under the new framework, 25% of the TDT revenue will continue to fund these marketing efforts, while the remaining funds will be redirected to offset county property taxes. This shift aims to provide additional revenue for local governments, which could have a significant impact on the way tourism is marketed in Florida moving forward.

This adjustment could lead to changes in the types of tourism initiatives that are funded, possibly reducing the amount allocated for tourism infrastructure such as public transportation, beachfront restoration, and other services that directly affect visitors. Travelers to Florida in 2026 should be prepared for potential adjustments in local tourism offerings due to this financial shift.

3. Federal Changes Affecting Tourists: Gambling Loss Deduction Cap

While individual states are implementing or adjusting taxes, federal changes also stand to impact tourists in 2026, particularly those involved in gambling activities. Starting January 1, 2026, the U.S. government will introduce a cap on gambling loss deductions. The new rule will limit the ability of gamblers to deduct losses from their winnings to 90%, down from the current practice where losses can be deducted dollar-for-dollar up to the total amount of winnings.

This change will primarily affect tourists who visit states with casinos or other gambling venues, such as Las Vegas, Atlantic City, and parts of Mississippi. International visitors who enjoy gambling as part of their travel experience may find themselves with higher taxable income if they do not meet the 90% cap on deductions.

The cap on gambling loss deductions is part of broader tax reforms aimed at generating more revenue for the federal government, while also ensuring that individuals cannot use gambling losses to significantly reduce their tax liability. Travelers should be aware of this change, especially those planning to visit gambling hubs in the U.S.

4. Other States’ Efforts and Proposed Taxes

While Hawaii and Florida are the most notable examples, other U.S. states are likely to introduce or continue implementing various taxes related to tourism in the coming years. For example:

• California may explore additional taxes to fund its ambitious climate change initiatives and support the tourism industry’s carbon footprint reduction. Such measures could include taxes on transportation and lodging aimed at promoting eco-friendly tourism options.
• Nevada, a state heavily dependent on tourism revenue, may increase hotel taxes to fund state services or infrastructure improvements, particularly in cities like Las Vegas, where tourism is a major economic driver.
• New York has long relied on hotel occupancy taxes, which could be adjusted to reflect the growing demand for short-term rental accommodations, such as those listed on platforms like Airbnb. These changes may not take effect until later in the decade, but they could significantly impact travelers to cities like New York City.

The Future of U.S. Tourism Taxes

The tourism landscape in the U.S. is evolving, with new taxes and fee increases aimed at improving infrastructure and ensuring the sustainability of tourism in the coming years. From Hawaii’s Green Fee and the increase in Transient Accommodations Tax to Florida’s shift in Tourist Development Tax use and federal changes to gambling loss deductions, travelers heading to the U.S. in 2026 should stay informed about the latest tax policies.

These new measures reflect the growing importance of balancing economic growth from tourism with the need to fund essential services, address climate change, and maintain infrastructure. As these changes take effect, tourists will need to adjust their budgets and plans accordingly. Whether visiting Hawaii’s beaches or gambling in Nevada, travelers will play a key role in supporting local and federal economies through these taxes. Keep an eye on updates from local governments to ensure a smooth and informed trip to the U.S. in 2026.