Cruises to Hawaii are about to get a little more expensive from 2026.
The Hawaii State Legislature has hiked the transient accommodations tax (TAT), which will now, for the first time, impact cruise ship passengers for every Hawaii port call.
Transient Accommodations Tax
The transient accommodations tax was created to generate revenue for stays at hotels, short-term rentals, and time-share properties.
Cruise passengers will also be charged a prorated TAT in a major shift based on time spent in port.
Starting January 1, 2026, the TAT will increase for land-based accommodations, the first statewide increase in over a decade. A law change now adds cruise port calls, which amount to 11% of the prorated cruise fare based on days docked at ports.
The law states that the tax will be charged on the basic “cruise fare,” which includes shipboard lodging and most inclusive services, but not for optional extra services such as shore excursions already paid for by the cruise guest.
What Hawaii Lawmakers Say
Lawmakers say this makes it fairer for all tourism segments so that all visitors contribute. Last year, almost one million Hawaii visitors arrived by cruise ship and weren’t required to pay the tax.
The TAT is specifically tied to funding for “natural resource management, climate-related disaster mitigation, and mitigating tourism impacts on the environment.”
“The more you cultivate good environmental policy, the more likely it is we’re going to have actually lifelong, committed travelers to Hawaii,” said Governor Josh Green. The Governor has yet to sign it into law.
The expansion of the transient accommodations tax is expected to generate up to $100 million annually. The cruise industry vehemently opposes it but hasn’t officially responded since the bill passed in both state Houses.
In a recent letter to the Hawaii Attorney General, cruise lines warned that they intended to sue over the “unconstitutional” tax.
A cruise passenger commented on the new law, “I love visiting Hawaii, but adding another tax feels like we’re being nickeled and dimed. If prices keep rising, we may rethink our cruise there.”
They said it could impact cruise tourism in the Hawaiian Islands. At the forefront is Norwegian Cruise Line, which would arguably be impacted most. It operates the US-registered Pride of America based in Honolulu, which offers weekly cruises exclusively within the Hawaiian Islands.
Major lines like Carnival, Princess Cruises, Holland America Line, and Disney sail Hawaii cruises on a seasonal basis, typically on extended sailings from California.
