Tennessee Joins Hawaii, Texas, Florida, New Hampshire, Nebraska and More US States in Implementing Lodging Tax to Boost Tourism: Everything You Need to Know

Published on December 17, 2025

By: Rana Pratap

Washington County, Tennessee introduced a lodging tax with 4% on short-term rentals outside municipalities, 1% in Johnson City, and 3% in Jonesborough, totaling 8% in some areas, to generate revenue for tourism development like marketing and infrastructure, similar to states like Florida, Hawaii, and Texas. This tax is part of the county’s effort to reinvest in its growing tourism sector, improve local infrastructure, and support events and attractions that bring visitors to the area. The funds collected will be directly used to enhance the visitor experience, promote the county’s unique offerings, and ensure long-term sustainable growth for tourism.

Tennessee’s New Lodging Tax Powers Up Local Tourism, Joining US States in Boosting Travel

In 2024, Washington County, Tennessee made a significant move to enhance its local tourism industry by implementing a lodging tax for hotels, motels, and short-term rentals such as Airbnb and Vrbo. This new tax is now in full effect and aims to generate revenue that will be reinvested into the county’s tourism development. Here’s everything you need to know about Tennessee’s new lodging tax and how it will affect both visitors and local businesses.

What is Washington County’s Lodging Tax?

As of 2024, Washington County has passed a new hotel/motel and short-term rental tax. The tax has different rates depending on the location of the property:

• 4% tax on short-term rentals outside of any municipal area in Washington County.
• 1% tax in Johnson City.
• 3% tax in Jonesborough.

However, the new county tax is in addition to the city tax rates already in place. So, for example, Johnson City has a 7% city tax, and Jonesborough has a 5% city tax.

This means that if a short-term rental is located in Johnson City, a guest would pay the 1% county tax in addition to the 7% city tax, totaling an 8% lodging tax. Similarly, in Jonesborough, a short-term rental guest would pay 5% city tax plus the 3% county tax, resulting in an 8% total lodging tax.

Why Was the Lodging Tax Implemented?

The lodging tax was implemented to boost tourism and enhance the visitor experience in Washington County. As tourism in the area grows, there’s a need for additional funding to improve infrastructure, promote the region, and support events that draw visitors. The funds generated from this tax will be reinvested directly into tourism development projects, such as advertising campaigns, event promotion, and infrastructure upgrades.

The decision was also made to balance out the tax rates across the county and its cities. By standardizing the tax, the goal is to make the area more competitive and ensure that all short-term rentals and hotels contribute fairly to the tourism budget.

How Will the Lodging Tax Revenue Be Used?

The funds collected from the lodging tax will be dedicated entirely to tourism development. This means the money will go towards:

1. Tourism Marketing – The county will use the funds to create targeted marketing campaigns that showcase Washington County’s unique attractions and events, drawing more visitors to the area.
2. Event Promotion – The revenue will support local events like festivals, sporting competitions, and cultural gatherings that attract tourists and generate significant local spending.
3. Infrastructure Improvements – The money will be used for enhancing tourism infrastructure, such as public spaces, transportation, and tourism facilities, ensuring that visitors have a positive experience while in Washington County.

What Does This Mean for Visitors to Washington County?

For visitors, the new lodging tax means they will pay a slightly higher total tax rate, depending on the location of their stay. For example, if you’re staying in Jonesborough, a guest will pay an 8% total tax on their short-term rental fee, which includes the 5% city tax and the 3% county tax. Similarly, in Johnson City, guests will pay an 8% total tax — 7% city tax and 1% county tax.

However, the upside is that these taxes are directly funneled back into making Washington County an even more attractive and tourist-friendly destination. The investments made will help enhance the visitor experience through better marketing and improved infrastructure.

When Did the Lodging Tax Take Effect?

The new lodging tax was initially set to take effect in July 2024, but after a 30-day extension granted by Mayor Joe Grandy, the effective date was pushed back to give local motels, hotels, and short-term rentals time to adjust. This extension allowed businesses to prepare for the new tax rates and adjust their pricing and processes accordingly.

Taxes have already begun to be collected, and all funds generated by the tax are required to be used for tourism development.

What Does This Mean for Washington County’s Future?

This new lodging tax is an important step in securing long-term growth for Washington County’s tourism sector. By generating additional funds, the county can continue to build on its strengths—whether it’s promoting local events, enhancing tourism infrastructure, or showcasing the county’s unique attractions to a broader audience.

This move also signals the county’s commitment to sustainable tourism. With increased revenue and investment in the local economy, Washington County is ensuring that tourism can grow in a way that benefits both visitors and residents.

Hawaii’s Lodging Tax Surge: A Game Changer for Tourism Funding and Sustainability

In 2024, Hawaii made a significant move to further enhance its thriving tourism industry by increasing its lodging tax. This new tax on hotels, motels, and short-term rentals such as those listed on platforms like Airbnb is set to generate substantial revenue to reinforce the state’s tourism infrastructure. Here’s everything you need to know about Hawaii’s lodging tax and how it will shape the future of tourism in the Aloha State.

What is Hawaii’s Lodging Tax?

Hawaii has long had a Transient Accommodations Tax (TAT) in place for travelers staying in hotels, vacation rentals, and timeshares. The current tax rate is 10.25% at the state level, with some counties adding an additional 3% in local taxes. The revenue generated from this tax is intended to fund tourism marketing, sustainable travel initiatives, and improvements to tourism infrastructure across the islands.

In 2023, Hawaii’s TAT generated over $865 million, a vital funding source for the state’s tourism operations, allowing Hawaii to maintain its position as one of the most visited destinations globally.

Why Was the Lodging Tax Increased?

Hawaii’s tourism sector is one of the state’s biggest economic drivers, drawing millions of visitors every year. As visitor numbers continue to rise, the state needs additional funding to support sustainable tourism practices and ensure that the local environment and resources are well-managed.

The increase in the TAT aims to boost tourism promotion, sustain the infrastructure needed to accommodate more visitors, and address the environmental and cultural impact that growing tourism can have. Hawaii has long prided itself on its natural beauty, and this tax will help ensure that the islands remain a pristine destination for generations to come.

How Will Hawaii Use the Lodging Tax Revenue?

Hawaii plans to reinvest the revenue from the lodging tax in several key areas that directly impact tourism and the local economy:

1. Tourism Marketing – Funds will be used to promote Hawaii through advertising and marketing campaigns, encouraging visitors to explore all that the islands have to offer, from beaches to cultural experiences.
2. Environmental and Cultural Preservation – A significant portion of the funds will go toward sustainability initiatives aimed at protecting Hawaii’s delicate ecosystems and preserving its rich cultural heritage for future generations.
3. Infrastructure Improvements – The revenue will also be used for upgrading public spaces, transportation systems, and tourism-related facilities to ensure the islands are well-equipped to handle increasing visitor traffic.
4. Community Programs – Some funds may be allocated to support local communities, ensuring that residents benefit from the growing tourism sector through job creation and community development programs.

What Does This Mean for Hawaii’s Future as a Tourist Destination?

Hawaii’s increased lodging tax is set to further solidify the state’s reputation as a top-tier tourist destination. The funds will allow Hawaii to expand and diversify its tourism offerings, drawing in more visitors while simultaneously ensuring that tourism has a positive impact on the islands’ economy, culture, and environment.

As a popular destination for international travelers, Hawaii is now better equipped to compete with other global tourism hotspots, all while maintaining its distinct charm and natural beauty.

Texas Implements Lodging Tax to Fuel Tourism Growth and Infrastructure in 2024

In 2024, Texas joined the growing list of states enhancing their tourism industries through lodging taxes. This move aims to generate revenue that will be reinvested into the state’s tourism sector, making it a more competitive and sustainable destination. Here’s everything you need to know about Texas’s lodging tax, how it works, and what it means for the future of tourism in the Lone Star State.

What is Texas’ Lodging Tax?

Texas imposes a 6% statewide hotel occupancy tax on all hotel stays, including short-term rentals like those on Airbnb and Vrbo. In addition to this, individual cities and counties can levy their own local occupancy taxes, which can add up to several percentage points to the total tax rate. For example, Austin, one of Texas’s most popular tourist destinations, has a 9% local tax, making the total lodging tax rate 15% for guests.

The revenue generated from this lodging tax is primarily used for tourism promotion and economic development, helping Texas maintain and grow its status as a leading U.S. tourist destination.

Why Was the Lodging Tax Implemented?

The lodging tax was introduced as a way to create a sustainable tourism economy. Texas has seen an increase in the number of visitors each year, but with this growth comes the need for better infrastructure and more resources to manage the growing demand. The revenue generated from the tax will help fund tourism marketing, enhance local attractions, and support events that draw in visitors.

The move also helps keep Texas competitive with other tourism-heavy states like Florida and California, which use similar tax models to fund tourism growth.

How Will Texas Use the Lodging Tax Revenue?

Texas plans to reinvest the funds collected from the lodging tax in several ways, all aimed at enhancing the state’s tourism sector:

1. Tourism Marketing – The state will use the revenue to run advertising campaigns that attract more visitors, promoting Texas’ diverse attractions, from big cities like Dallas and Houston to natural wonders like Big Bend National Park.
2. Supporting Major Events – The funds will support the promotion of large events, such as festivals, sporting events, and conventions, which bring in tourism dollars and keep Texas on the map as an event destination.
3. Infrastructure Improvements – Part of the revenue will be allocated to improving public spaces, transportation, and tourism facilities to make the visitor experience smoother and more enjoyable.
4. Local Economic Development – The funds will also help support local businesses that rely on tourism, ensuring that communities throughout the state benefit from the growing industry.

What Does This Mean for Texas’ Future as a Tourist Destination?

By implementing the lodging tax, Texas is positioning itself for even greater success in the tourism sector. With funding for marketing, event promotion, and infrastructure, the state is better prepared to handle the influx of tourists while also ensuring that the benefits of tourism are felt statewide.

The state is already a top destination for travelers, and with the help of this tax, Texas can continue to expand its tourism offerings and attract visitors from around the world.

Florida Lodging Tax Boosts Tourism Marketing and Infrastructure Development

In 2024, Florida continued its push to maintain its status as one of the top tourist destinations in the United States by enhancing its lodging tax. This tax, which applies to hotels, motels, and short-term rentals, is designed to generate revenue that will be reinvested into the state’s tourism industry. Here’s everything you need to know about Florida’s lodging tax and how it will impact the state’s tourism sector.

What is Florida’s Lodging Tax?

Florida has a unique approach to lodging taxes. While the state does not have a statewide lodging tax, it allows local counties to levy Tourist Development Taxes (TDT) on hotel stays and short-term rentals. These taxes usually range from 3% to 6%, depending on the county. Popular tourist areas like Miami-Dade and Orange County (home to Orlando) have higher taxes, with some counties charging up to 6%.

For instance, Miami-Dade County applies a 6% TDT on hotel and short-term rental bookings, which contributes significantly to funding the region’s tourism initiatives.

Why Was the Lodging Tax Implemented?

The lodging tax was implemented to fund tourism marketing, destination management, and local infrastructure projects. As one of the most visited states in the US, Florida needed a steady stream of funds to keep up with the growing demand for tourism services. The tax revenue helps promote Florida’s beaches, theme parks, cultural events, and natural attractions to keep visitors coming year after year.

It also helps Florida manage its tourism impact, ensuring that the growth of the sector is sustainable and that the state can accommodate an ever-increasing number of tourists.

How Will Florida Use the Lodging Tax Revenue?

The funds collected from the lodging tax will be reinvested in various initiatives aimed at promoting and improving Florida’s tourism sector:

1. Tourism Marketing – A significant portion of the funds will be used to advertise Florida’s attractions to domestic and international travelers. From theme parks in Orlando to beaches in Miami, the goal is to keep Florida top of mind for potential visitors.
2. Event Promotion – The lodging tax will help secure and promote major events like festivals, sports competitions, and conventions that draw large crowds and generate additional tourism revenue.
3. Infrastructure Improvements – A portion of the revenue will go toward improving tourism-related infrastructure, such as airports, transportation systems, and tourism centers, ensuring a better experience for visitors.
4. Local Economic Development – The tax revenue also supports local businesses, ensuring that tourism dollars benefit communities across Florida.

What Does This Mean for Florida’s Future as a Tourist Destination?

Florida has long been one of the most visited states in the U.S., and with the help of the lodging tax, the state is continuing to reinforce its tourism infrastructure and enhance the visitor experience. By using the tax revenue to fund marketing and local projects, Florida is ensuring it remains competitive in the global tourism market.

The tax will also help Florida balance the needs of tourists with the preservation of its natural resources and local culture, making it a sustainable destination for years to come.

New Hampshire’s Lodging Tax: A Strategic Move to Enhance Tourism and Local Economy

In 2024, New Hampshire took an important step to support its growing tourism industry by implementing a lodging tax on hotels, motels, and short-term rentals like those on Airbnb and Vrbo. This tax is designed to generate revenue that will be reinvested into tourism development and infrastructure projects. Here’s everything you need to know about New Hampshire’s lodging tax and how it will enhance the state’s tourism economy.

What is New Hampshire’s Lodging Tax?

New Hampshire imposes a 9% Meals & Rooms Tax, which includes both lodging and restaurant services. The tax applies to all hotels, motels, and short-term rentals. This 9% tax rate is one of the highest in the country and is aimed at generating revenue for local communities and statewide tourism initiatives.

The revenue generated by this tax will be reinvested into programs that help promote tourism, maintain infrastructure, and support local businesses in areas that rely on tourist dollars.

Why Was the Lodging Tax Implemented?

New Hampshire has long been a popular tourist destination, thanks to its beautiful landscapes, ski resorts, and charming small towns. However, with the growing number of visitors each year, the state needs additional funding to manage the increasing demands on its tourism infrastructure.

The lodging tax is designed to support the state’s tourism industry by funding marketing campaigns, supporting events, and investing in tourism infrastructure that enhances the visitor experience. The goal is to make New Hampshire an even more attractive destination for both domestic and international travelers.

How Will New Hampshire Use the Lodging Tax Revenue?

The funds collected from the lodging tax will be reinvested into several key areas that are crucial for the state’s tourism growth:

1. Tourism Marketing – A portion of the funds will be used to run advertising campaigns to attract tourists. These campaigns will highlight New Hampshire’s natural beauty, historic sites, and year-round attractions like fall foliage tours and skiing in the winter.
2. Event Promotion – The tax revenue will help promote major events such as festivals, sports competitions, and cultural celebrations. These events attract thousands of visitors and help generate significant revenue for local communities.
3. Infrastructure Improvements – New Hampshire plans to use some of the funds to improve transportation systems, public spaces, and tourism-related facilities, making it easier for visitors to explore and enjoy the state’s attractions.
4. Support for Local Businesses – The revenue will also be used to help local businesses that rely on tourism, ensuring they benefit from the increased flow of visitors and contribute to the state’s economy.

What Does This Mean for New Hampshire’s Future as a Tourist Destination?

By implementing the lodging tax, New Hampshire is positioning itself for long-term success in the tourism sector. The state is investing in sustainable tourism by using the revenue to enhance the visitor experience and promote its unique offerings. With $10 million generated annually by the Meals & Rooms Tax, the state has the resources to attract more visitors while maintaining the charm and natural beauty that makes it a beloved destination.

Nebraska’s Lodging Tax: The Key to Sustainable Tourism Growth and Local Development

In 2024, Nebraska made an important move to strengthen its tourism economy by implementing a lodging tax on hotels, motels, and short-term rentals like those listed on Airbnb and Vrbo. This new tax is part of the state’s efforts to generate additional revenue for promoting tourism, improving infrastructure, and ensuring sustainable growth in the industry. Here’s everything you need to know about Nebraska’s lodging tax and how it will impact the state’s tourism future.

What is Nebraska’s Lodging Tax?

Nebraska levies a local lodging tax that varies by county and city. In addition to the statewide sales tax, which applies to most goods and services, counties and cities can impose their own tourism-related taxes on hotel stays and short-term rentals.

For example, in Lincoln and Omaha, local lodging taxes are used to help fund tourism marketing and infrastructure development in these high-traffic areas. These local taxes usually range from 2% to 7%, depending on the specific location.

Why Was the Lodging Tax Implemented?

The lodging tax was introduced to help fund tourism marketing and promote Nebraska’s attractions, including its rich history, outdoor activities, and unique cultural offerings. Nebraska has seen a steady increase in visitor numbers, but with growing tourism comes the need for better infrastructure and resources to manage the demand.

By collecting taxes from visitors who use lodging services, Nebraska ensures that tourism dollars are used to improve the overall visitor experience and support local economies that depend on tourism. The tax revenue will help the state market itself as an attractive destination, bringing in more visitors to support local businesses and events.

How Will Nebraska Use the Lodging Tax Revenue?

The revenue generated from the lodging tax will be used in several key ways to support Nebraska’s tourism sector:

1. Tourism Marketing – A portion of the funds will go towards advertising campaigns designed to attract tourists to the state. These campaigns will showcase Nebraska’s natural beauty, outdoor adventures, and iconic attractions like the Sandhills, Chimney Rock, and Carhenge.
2. Event Promotion – The funds will support local festivals, sporting events, and cultural events that draw visitors to Nebraska. These events are crucial in boosting local economies and generating tourism revenue.
3. Infrastructure Improvements – The tax revenue will be reinvested into improving transportation, public spaces, and tourism-related infrastructure, ensuring that the state can handle the growing number of visitors and offer them a seamless experience.
4. Local Business Support – The funds will help support small businesses in tourist areas, ensuring they benefit from the increase in visitors and can continue to grow alongside Nebraska’s expanding tourism industry.

What Does This Mean for Nebraska’s Future as a Tourist Destination?

The implementation of the lodging tax positions Nebraska for continued growth in the tourism sector. The funds generated will allow the state to attract more visitors, improve its tourism infrastructure, and ensure that the tourism industry remains sustainable.

Nebraska’s diverse tourism offerings, from outdoor recreation to historical sites and local festivals, will continue to attract visitors. The lodging tax provides a much-needed funding source to ensure that the state remains competitive with other popular destinations across the U.S.

In 2024, Washington County, Tennessee introduced a lodging tax to generate revenue for tourism development such as marketing, events, and infrastructure, following the example of states like Florida and Texas, to support and grow local tourism.

In conclusion, Washington County, Tennessee’s new lodging tax is a well-planned initiative designed to strengthen the county’s tourism industry. By reinvesting the revenue into marketing campaigns, promoting local events, and improving infrastructure, the tax will help enhance the overall tourist experience and attract more visitors. This investment not only supports local businesses but also positions the county as a more competitive destination in the broader tourism market. With these improvements, Washington County is on track for sustainable growth in its tourism sector, ensuring it remains a top choice for travelers in the future.