While no one’s denying the thrill of exploring a new city, discovering that the hotel tax is alarmingly high can make you pause before hitting the “book now” button. For better or worse, some U.S. states have hotel taxes that might make you reconsider your next trip. Here are 13 states where the exorbitant hotel taxes might have you doing a double-take on your reservation.
1. Illinois
Illinois is a state known for its bustling cities and vibrant cultural scene, yet it also boasts a substantial hotel tax. In cities like Chicago, you’re looking at a combined tax rate that can easily creep above 17%. This rate combines state, county, and city taxes, making it one of the highest hotel tax burdens in the country. For frequent travelers, this could mean the difference between staying at a budget-friendly location or splurging on luxury accommodations.
According to the Illinois Office of Tourism, these taxes are crucial for funding local infrastructure and promoting tourism. While it’s comforting to know your money isn’t disappearing without a trace, it may not soften the blow when you’re balancing your travel budget. The kicker here is that in high-tourism seasons like summer, hotel rates themselves inflate, and the tax only compounds the expense. For those eyeing a visit to the Windy City, it might be wise to plan your stay strategically.
2. New York
New York, with its iconic skyline and endless attractions, has a hotel tax that might take you by surprise. In New York City, the combined tax rate can climb to nearly 15% — not including additional nightly charges that some hotels tack on. If you’re planning that once-in-a-lifetime trip to Times Square or Central Park, you’ll want to factor in these costs to avoid an unexpected dent in your wallet. The Big Apple isn’t cheap, and that extends to its hotel accommodations.
But why is New York’s hotel tax so steep? Much of it is driven by high demand; millions of tourists flock to the city every year. Plus, the revenue generated supports essential city services and tourism marketing efforts. While you might balk at the extra cost, it’s part of what helps keep the city’s bustling charm alive and well — something to keep in mind as you zip through Broadway shows and museums.
3. Texas
Everything is bigger in Texas, including the hotel tax rates in popular cities like Houston and Austin. The combined rate can reach 17%, which means you might want to think twice before booking that plush downtown suite. The Lone Star State uses these taxes to bolster local economies and fund city events, ensuring that visitors have plenty to see and do. Yet, for travelers, it can feel like a not-so-small price to pay.
Interestingly, a report by the Texas Comptroller’s Office illustrates how these funds are reinvested into tourism and local projects. This reinvestment helps draw tourists back to the state, creating a cycle that benefits both visitors and residents. However, when you’re the one paying the bill, it may not feel quite as beneficial. For the savvy traveler, it’s worth considering accommodation options just outside city limits where taxes might be less intense.
4. California
California’s allure is undeniable, with its sun-kissed beaches and Hollywood glamour, yet its hotel taxes can be a shock. Major tourist cities like Los Angeles and San Francisco often charge around 14% in hotel taxes, a figure that can climb higher with additional local fees. This can add a surprising amount to your bill, making it essential to budget accordingly. Don’t forget those extra resort fees that seem to pop up just when you thought you had it all calculated.
The state justifies these taxes as a means to maintain its extensive tourism infrastructure. This includes everything from maintaining pristine beaches to ensuring public transportation can handle the tourist influx. While you may begrudge the extra fees while you’re signing the check-out slip, California’s commitment to a world-class experience is something to consider. If you can swing it, the sights and sounds of the Golden State are well worth the extra expense.
5. Massachusetts
Massachusetts might captivate you with its rich history and vibrant cities, but its hotel tax could also leave a mark. In Boston, the combined rate can reach up to 15%, a figure that’s hard to ignore when planning your stay. This tax supports a variety of local projects, from public works to cultural festivals that keep the state’s history alive. Yet, it does mean travelers have to dig a bit deeper into their pockets.
The Massachusetts Taxpayers Foundation notes that these revenues are integral to the state’s economic development strategy. They help maintain the allure of cultural landmarks and fund public services, making it a more engaging destination. Despite this, the cost can be startling, especially for those visiting during peak seasons. If you’re planning to immerse yourself in the Revolutionary spirit, it might be worth exploring accommodations outside the costliest downtown zones.
6. Louisiana
Louisiana, with its vibrant culture and renowned cuisine, is another state where hotel taxes might catch you by surprise. In New Orleans, for instance, the hotel tax can soar upwards of 15%, not including extra fees that some establishments charge. This can be a bit of a shock, especially for those who come for the famous festivals and find their budgets stretched thin. The state uses this revenue to fund its rich cultural offerings, so in a way, you’re supporting what makes Louisiana unique.
While no one wants to feel like they’re overspending, the experience of the French Quarter or the sounds of a jazz-filled evening might make it easier to stomach. The funds help sustain the unique cultural landscape that brings people back to Louisiana year after year. However, for budget-conscious travelers, it might be wise to find deals or book stays during the off-season. That way, you can enjoy the mystique of Louisiana without feeling too guilty about the cost.
7. Nevada
Nevada is synonymous with Las Vegas — and its hefty hotel taxes reflect its status as a top tourist destination. The tax rate in Sin City can hit 13.38%, and when you add in resort fees, that budget-friendly trip can quickly escalate. These fees are largely used to fund the city’s impressive array of entertainment options and ensure that its infrastructure can handle the influx of tourists. While you might balk at the cost, it’s part of what keeps the casinos buzzing and the shows dazzling.
According to the Las Vegas Convention and Visitors Authority, these taxes play a vital role in maintaining the city’s economy. They support tourism marketing efforts, which in turn attract even more visitors each year. While the added cost might seem daunting, it ensures that Vegas remains the glittering entertainment hub it’s known to be. If you’re planning a visit, keep these taxes in mind as you plan your ultimate Vegas experience.
8. Hawaii
Hawaii is a dream destination for many, but its hotel taxes might feel more like a wake-up call. The state adds a 10.25% transient accommodations tax on top of general excise taxes, which can significantly inflate your lodging costs. This might be a surprise to those dreaming of a budget-friendly island getaway. The state ensures that these funds are used to preserve its natural beauty and cultural heritage.
While the taxes might seem steep, they contribute to the maintenance of the island’s stunning landscapes and infrastructure. This ensures that you can enjoy the breathtaking views and pristine beaches Hawaii is famous for. Still, for those on a tight budget, planning is crucial to make the most out of a Hawaiian escape without breaking the bank. Consider off-peak travel times and look for packages that might offer a bit of relief from the looming tax rates.
9. Washington
Washington State, especially in Seattle, imposes a hotel tax that can make your coffee-fueled adventures a bit pricier. A stay in the Emerald City includes a combined tax rate that can reach up to 15.6%. This charge helps fund local projects and tourism initiatives, keeping the area’s arts and culture scene thriving. However, travelers often feel the pinch, especially when paired with Seattle’s relatively high hotel prices.
These taxes are used to bolster the city’s tourism appeal, ensuring that visitors have plenty to see and do. From funding public art installations to supporting local museums, the revenue helps maintain the city’s cultural attractions. Despite the benefits, the added cost can dissuade budget-conscious travelers from extending their visits. If you’re planning a trip, consider looking for deals or staying outside the city center to manage expenses better.
10. Florida
Florida’s sunny disposition might entice you, but its hotel taxes could dampen your mood. In tourist hotspots like Orlando and Miami, you can face a combined tax rate of around 13%. This can add a sneaky surcharge to your family vacation or solo adventure. While the state’s beaches and theme parks are undoubtedly worth visiting, factoring in these taxes is essential for any thorough trip planning.
The revenue from these taxes supports a range of local services and tourism marketing efforts, ensuring visitors have a memorable experience. This includes maintaining public spaces and supporting local events that draw people to the Sunshine State. However, for those on a strict budget, these taxes are an important consideration when planning a trip. With some strategic planning, you can still enjoy Florida’s many attractions without feeling the pinch too sharply.
11. Missouri
Missouri might not be the first place you think of when it comes to high hotel taxes, but cities like Kansas City and St. Louis can surprise you. With rates reaching up to 17%, it’s worth calculating these costs before you commit to your travel plans. These taxes are funneled into local tourism initiatives and infrastructure, ensuring that Missouri can offer a range of attractions. Yet, for those watching their wallets, these fees can seem disproportionate to the overall travel experience.
The state views these taxes as a way to support its growing tourism industry and attract more visitors each year. However, this doesn’t always align with travelers’ expectations of affordability. If you’re drawn to Missouri’s unique blend of cultural and historical sites, consider looking for accommodations that may offer lower tax rates outside major urban centers. This way, you can explore the Show-Me State without showing too much cash.
12. Minnesota
Minnesota might charm you with its lakes and vibrant arts scene, but its hotel taxes could give you pause. In Minneapolis, the combined tax rate is around 13.4%, which can add up during an extended stay. This tax revenue supports essential city services and cultural initiatives, ensuring that there’s always something new to see and do. For visitors, though, it can make an otherwise affordable trip a bit more expensive.
The Minnesota Department of Revenue emphasizes the importance of these taxes in maintaining the state’s tourist appeal. They help fund projects that improve city infrastructure and support local events. While these benefits are notable, the added cost can be a hurdle for those traveling on a budget. By planning wisely, you can enjoy the Land of 10,000 Lakes without feeling like you’ve spent a fortune.
13. Connecticut
Connecticut might surprise you with its quaint New England charm, but its hotel taxes could also surprise your wallet. In cities like Hartford and Stamford, the combined rate can exceed 15%. These taxes go toward maintaining local attractions and services, making the state an appealing destination for tourists. However, the cost can be significant, especially for those looking to enjoy a simple getaway.
The state utilizes these funds to support its tourism industry and maintain its array of historical sites. This ensures that visitors have a wealth of experiences to choose from, even if it means paying a little extra. Still, for travelers on a budget, these taxes are an important consideration. By keeping an eye out for deals and planning ahead, you can enjoy Connecticut’s scenic beauty and rich history without the financial hangover.
This article is for informational purposes only and should not be construed as financial advice. Consult a financial professional before making investment or other financial decisions. The author and publisher make no warranties of any kind.
