Hawaii Becomes First State to Add Hotel Tax for Climate Action

Starting January 1, 2026, Hawaii will increase its hotel tax to help fund efforts to combat the impacts of Climate change. The new law, SB1396, adds a 0.75% fee to existing state taxes on hotel rooms, vacation rentals, timeshares, and even cruise ship stays. This move will raise the total short-term lodging tax in Hawaii to nearly 19%, one of the highest in the nation.

According to ABC News, the law is expected to generate close to $100 million annually for environmental protection. These funds will Support initiatives like coral reef restoration and wildfire prevention — critical needs as Hawaii faces rising sea levels, severe coastal erosion, and erratic weather due to the climate crisis. The state sees about 10 million tourists each year, meaning this small increase could go a long way.

Governor Josh Green called the new tax “a generational commitment” to protecting the land, or ‘āina — a term that in Hawaiian culture signifies not just nature but the spiritual bond between people and the environment. It’s the first time any U.S. state has passed a climate-focused lodging tax.

Groups like Care for ‘Āina Now say Hawaii still faces a $560 million shortfall in funding for long-term environmental care, but this bill is an important start. While a steeper tax had been considered, lawmakers compromised after pressure from the tourism industry.

Hawaii is betting that travelers who love the islands will be willing to pay a little more to help preserve them. And they should.

If you love Hawaii’s beaches, reefs, and wildlife, Support tourism models that give back. Choose plant-based meals, eco-certified stays, and skip cruises altogether. Protecting paradise starts with responsible choices.

Video Source: WION/Youtube

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