If you are planning a domestic trip in 2026, it is worth taking a closer look at lodging taxes before you book. Several popular states are adjusting hotel and short-term rental taxes, which can slightly raise the total cost of a stay. These taxes are often listed separately from the nightly rate, so they are easy to overlook when budgeting. Knowing what is changing ahead of time can help you avoid surprises at checkout.
Lodging taxes vary widely because they can be set at the state, county, or city level. In many cases, the increases are meant to support tourism services, infrastructure, and long-term planning. While the added costs may seem small per night, they can add up over longer trips. Here is what travelers should expect in Hawaii, New York, California, and Minnesota in 2026.
Hawaii
Beginning January 1, 2026, Hawaii will increase the tax on hotel rooms and vacation rentals from 9.25 percent to 10 percent, according to state law. This increase is commonly referred to as the “Green Fee,” which is intended to fund environmental protection, climate resilience projects, and infrastructure improvements tied to tourism. Some national summaries report an 11 percent figure, but that rate applies specifically to cruise ship cabin fares, not hotels or vacation rentals. For most travelers booking accommodations on land, 10 percent is the accurate lodging tax rate to expect.
The revenue will be used to support shoreline restoration, wildfire mitigation, and preservation of natural resources across the islands. Hawaii’s ecosystems experience heavy strain from year-round tourism, which is why lawmakers framed the increase around sustainability. While the tax change is modest, it will be noticeable on longer stays or higher nightly rates. If you are visiting Hawaii in 2026, factor the higher tax into your lodging budget rather than relying only on advertised room prices.
If you are trying to offset higher lodging costs in Hawaii, packing smarter can help, and a lightweight carry-on suitcase with compression panels can reduce checked bag fees and make island hopping easier, especially for travelers booking shorter stays or budget accommodations.
New York
In New York, lodging taxes are often set locally, and some counties will see notable increases in 2026. Saratoga County’s hotel occupancy tax will rise from 1 percent to 3 percent starting January 1. This change affects hotel stays throughout the county, including peak travel seasons tied to racing, festivals, and summer tourism. Visitors will see the increase added directly to their accommodation costs.
County officials plan to use the additional revenue to support tourism promotion and public services. Saratoga County relies heavily on visitors for its economy, especially during major events. The funding is intended to help manage visitor demand while maintaining historic sites and public spaces. For travelers, the increase is relatively small but still worth factoring into trip planning.
Because local taxes can vary widely within New York, using a travel expense tracker app or smart budgeting notebook can help you stay on top of daily spending, especially when hotel taxes, dining costs, and event fees add up quickly.
California
California will see several local lodging tax increases in 2026 rather than a single statewide change. In San Diego, hotel room tax rates are set to rise, with total rates ranging roughly from 11.75 percent to 13.75 percent, depending on the specific area. Other parts of the state, including areas in San Mateo County, will also increase lodging taxes by about one percentage point. These taxes apply to hotels and short-term rentals.
The additional revenue is expected to support public safety, transportation, tourism promotion, and infrastructure. California continues to attract high visitor volumes, which places pressure on local services and public spaces. For travelers, this means higher total nightly costs in certain cities, even if base room rates remain the same. Checking local tax rates before booking is especially important when comparing accommodations across California.
If you are visiting multiple cities in California, a portable charging power bank can be a practical investment, helping you navigate transit apps, booking confirmations, and maps without relying on hotel charging access.
Minnesota
Minnesota will introduce new local lodging taxes in select cities starting January 1, 2026. Faribault and Richfield will each implement a 3 percent lodging tax on hotel stays and similar accommodations. These taxes are set at the city level and will be added to the total cost of a stay. Travelers booking in these areas should expect slightly higher bills than in previous years.
The funds collected will support local tourism development, visitor services, and infrastructure improvements. These cities attract travelers for their parks, events, and proximity to larger metro areas. Officials see the tax as a way to reinvest in amenities that benefit both residents and visitors. For travelers, the impact is modest but still relevant when planning multi-night stays.
For destinations like Minnesota where weather can change quickly, packing a compact, packable travel jacket can help you avoid last-minute purchases while staying comfortable during outdoor activities.
What Travelers Should Keep in Mind for 2026
While these lodging tax increases will raise costs slightly, most will only add a small amount per night. Still, when combined with resort fees, parking, and other local charges, the total can be meaningful. Reviewing the full tax breakdown before booking can help you build a more accurate travel budget. It is especially important when traveling to cities with layered state, county, and city taxes.
Planning ahead remains one of the best ways to manage rising travel costs. Booking early, traveling outside peak seasons, and comparing total prices instead of base rates can make a difference. Even with higher taxes, many destinations are investing in improvements that directly affect the visitor experience. Being informed allows you to travel confidently and focus on enjoying the trip rather than unexpected expenses.