If you are planning a Hawaiian holiday soon, expect a new tax to come your way.
That’s because Hawaii became the first state to impose so-called “green fees” or “green taxes” on tourists.
The fees designed to help protect Hawaii’s natural ecosystems from the effects of climate change will raise the state’s temporary accommodation tax (TAT) for nightly accommodation. Applies to hotel stays, cruise ship cabins, and short-term rentals.
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As Aloha welcomes around 10 million visitors each year, state officials say it could raise around $100 million a year.
A portion of the revenue from climate impact fees will be directed towards Hawaii’s response to future disasters, such as the 2023 Maui wildfire.
“Hawaii is at the forefront of protecting natural resources, recognizing its fundamental role in maintaining ecological, cultural and economic health in Hawaii,” Gov. Josh Green said in a press statement.
So how much does the so-called “green fee” increase for your stay in Hawaii?
Here are some things you need to know along with other taxes you can expect when booking a trip:
Hawaii Law 96 approves “green tax” for tourists
Hawaii’s new climate impact fees will come into effect next year in 2026. As mentioned earlier, this fee is designed to mitigate the impact of climate change by addressing the risk of wildfires and protecting vulnerable environments.
Gov. Green, who signed the law on Act 96, says the fee will lead to visitors who pay $3 per night for a $400 room stay.
“The fees will restore, correct and harden beaches and coastlines that are important for the health and safety of everyone who calls Hawaii home, whether for days or for life,” Green said in a statement.
If you are planning a trip to Hawaii, here are some extra charges you can expect to stay at the hotel every night and rent a short term.
Note: Cruise shipments for the first time in the state ports face TAT tax.
Travelers’ hotels or vacation rental rooms (taxes known as Transient Action Tax (TAT)) are expected to rise in Hawaii. Currently, it is 10.25%, but next year it will be 11%. It is expected to rise again in 2027. Four Hawaii counties can add additional taxes above the state TAT. They all decided to add the maximum possible value. This is an additional 3%. Adding it to the new state TAT will result in a total of 14% tax on the accommodation. General Excise Tax (GET) is also part of the invoice and will be added to your room rate. It varies from 4% to 4.5% depending on the island you are on.
New Hawaiian “green fees” to raise $100 million a year
Hawaii’s new “green tax” applies to cruise ships visiting the island in 2026. Cruises are currently exempt from the state’s temporary accommodation tax (10.25%).
(Image credit: Getty Images)
Climate impact fees are expected to lead to $100 million per year. Governor Green’s administration will work with the state legislature to select the project and decide which local groups will benefit.
According to the governor’s office, some key projects could include environmental management, climate and hazard resilience, and sustainable tourism.
Meanwhile, some groups and local reporters are concerned that a portion of the proceeds from the “green fee” could be sent to the state’s general fund.
Initially, the governor’s proposal directed climate revenues to two new special funds: the Special Fund for Climate Mitigation and Resilience and the Special Fund for Economic Development and Revitalization. After negotiations with the State Senate Methods and Instructions Committee, the final bill must remove those special funds and instead require a general fund to supplement the proceeds in the general fund. Addressing climate change, environmental protection, or mitigation of tourism impacts.
Why is this important? Sometimes, if new taxes or fees are placed in the General Fund, there is a risk that money could be allocated to other state priorities or unrelated projects rather than intended goals.
That uncertainty led to questions about whether climate charges truly support environmental and climate-related objectives designed to address.
Why Hawaii’s climate pricing is a historic victory
While the general tourism tax is nothing new, Hawaii is the first US state to create a tax to address the rapid impacts of climate change and mitigate the environmental impact of tourism.
Congress has discovered that Aloha is experiencing a climate emergency and that the effects of climate change are already affecting its residents and natural ecosystems. Some events include rising temperatures, long-term droughts, and devastating weather events that have affected the island.
Lawmakers also found that economic development cannot be separated from environmental management, as most of Hawaii’s economy relies on natural resources.
The measure comes two years after a fatal wildfire involved several areas of Maui, and subsequently destroyed more than 2,200 structures. The US Fire Service reported that natural disasters caused approximately $5.5 billion in damages. More than 100 lives have been lost in Lahaina.
Taking action now by enacting a “green fee” could be a proactive step to protecting the island’s environment, residents and businesses. Hawaii was the first state to lead this type of tax, and while profits remain, more states will likely continue.
