🎯 STRisker: Bulletin - Hawaii
Hawaii Hikes STR Taxes to Fight Climate Change—Is This the New Normal?
A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.
Hawaii Hikes STR Taxes to Fight Climate Change—Is This the New Normal?
Starting Jan. 1, 2026, vacation rentals and hotels in Hawaii will face a higher price tag—one that’s being called a climate crisis fee. Governor Josh Green just signed a bill that increases the state's tax on short-term accommodations from 10.25% to 11%, aiming to raise nearly $100 million annually to fund environmental protection projects.
That means if you're renting out a short-term property—or managing one—the cost to your guests is going up. And it’s not just a small bump: with county and state levies combined, visitors could be paying nearly 19% in taxes on their STR stays, making Hawaii one of the most heavily taxed destinations in the U.S.
The law is part of a broader strategy to combat climate-related disasters, like the 2023 Lahaina wildfire that devastated Maui and claimed 102 lives. The funds will be funneled into projects like beach erosion mitigation, wildfire prevention through invasive grass removal, and roof reinforcements for extreme weather.
Although some STR owners might feel the squeeze, officials are pitching the tax as a long-term investment in sustainability.
“If we don’t act now, we won’t have beaches to rent near, towns to host guests in, or trails to showcase,” said Rep. Adrian Tam, chair of the House tourism committee.
Interestingly, while Governor Green initially proposed a dedicated climate fund, lawmakers opted to send the money to the general fund instead—leaving future project funding dependent on legislative approval. Transparency and trust in how the funds are used will be critical moving forward.
The broader STR takeaway? Operators should prepare now for the 2026 implementation by adjusting pricing models and communicating clearly with guests about the tax increase and its purpose.
This law could become a model for other climate-vulnerable destinations. For now, Hawaii’s STR market will need to balance environmental stewardship with maintaining its appeal to cost-conscious travelers.
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