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Pricey in paradise: There's another new tax on stays in Hawaii

Dec. 17, 2021
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2 min read
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Pricey in paradise: There's another new tax on stays in Hawaii
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Just when you thought it was safe to go back to the beaches (of Oahu) comes the pain of a new hotel tax in this part of Hawaii.

This week, the mayor of Honolulu signed a 3% transient accommodations tax (labeled TAT) into law that applies to all short-term rentals.

Related: Visiting Hawaii now: Safe Travels to stick around as restrictions ease

You will pay the tax not only at hotels, but also at Airbnbs, timeshares and any other vacation rental on the island of Oahu. (Honolulu is a city-county that includes Honolulu and the rest of Oahu.)

Keep in mind that the new tax is in addition to the 10.25% hotel tax already imposed by the state.

Local officials claim state actions are responsible for the new tax. Last year, the state legislature voted to stop sharing a portion of the state hotel tax with counties. That opened the door for local counties to impose their own tax, which they have promptly done.

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Kauai, Maui and Hawaii counties had already adopted the surcharge.

Oahu Hawaii
(Photo by Clint Henderson/The Points Guy)

Revenue for the counties will, of course, depend on the health of the tourism economy. Hawaii has changed its entry requirements and restrictions with frequency throughout the coronavirus pandemic. Nonetheless, the Honolulu Star-Advertiser estimates that Oahu will receive anywhere from $86-$99 million per year from the new tax by the end of the fiscal year 2027.

Related: My top 5 things to do in Oahu, Hawaii

Those numbers are good news for Honolulu county, which is experiencing large budget deficits. One of its biggest headaches is a major shortfall in funding for the 20-mile light metro rail line set to run to the Ala Moana Center from East Kapolei.

Of course, traveling to Hawaii using points and miles will help offset the burden of those extra hotel taxes.

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

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  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
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  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
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