The Green Fee Arrives. Accountability Pending.

As of January 1, 2026, Hawaiʻi’s Green Fee is officially live, increasing the state TAT rate by 0.75 percentage points, from 10.25% to 11%. Hotels and vacation rentals are collecting, while the cruise ship tax is on hold after the Ninth Circuit Court temporarily blocked enforcement during the appeal.

For hotels, this effectively raises the cost of every stay and puts operators back in the familiar position of explaining tax policy at checkout, right alongside everyone’s favorite – resort fees, don’t get me started. BTW- Did you know resort fees get taxed also 🤦‍♂️.

The idea is well-intentioned: approximately $100 million a year for climate resilience, conservation, and “sustainable tourism,” guided by a new advisory council. The process is what’s concerning. The money flows through the general fund, and allocation requires legislative approval. Project-by-project details are still TBD, and allocations will be decided later through the recommendation budget process.

We’ve seen this movie before with the TAT, which started as an earmarked fund for specific use, until it wasn’t. Without named projects, real dollar commitments, and hard guardrails, we are skeptical that the Green Fee won’t be redirected to uses beyond its stated intent.

So how do guests see these (and other) fees? Here’s an actual rate display from an Oʻahu hotel. No HHH commentary needed. 😲