Pricey in paradise: There’s another new tax on stays in Hawaii
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Kauai, Maui and Hawaii counties had already adopted the surcharge.
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.
Featured image by Joseph Hostetler/The Points Guy.
Sign-up Successful!
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.