Court Blocks Hawaii’s New Cruise Tax

1/5/2026

A federal appeals court has blocked Hawaii’s new “Green Fee” travel tax just before it was set to take effect, limiting its impact mainly to cruises while the legal challenge proceeds. The climate tax, approved in 2025, raises the state’s transient accommodations tax by 0.75 percentage points to 11% to fund environmental and climate resilience projects, with projected revenues of up to $100 million a year. While enforcement on cruise ships is paused, the higher tax is now in force for hotels and vacation rentals across the state.

USA Today (01/02/26) Nathan Diller; Kathleen Wong