Jan 15, 2026
As the year winds down, you may be looking ahead to next year’s vacation plans. But if you are planning to travel domestically in 2026, you may face higher taxes in some U.S. destinations.
That’s because several states have plans to increase their lodgings taxes next year. Lodgings tax — known variously as hotel tax, occupancy tax, transient accommodations tax or bed tax — is added to overnight accommodations to raise money for governments for tourist amenities or general budgets, according to a Newsweek report (1).
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Vacation rentals and hotel rooms, as well as bed and breakfasts and motels, are typically subject to these taxes. Because different levels of government can implement their own lodgings taxes, you could face state, county or city taxes, or a combination thereof. So how can you budget for a U.S.-based trip in 2026? Read on for our tips.
States that are changing their taxes
According to the Newsweek report, these five states will change their lodgings taxes in 2026:
Michigan
A proposal to allow local governments to add an accommodations tax of up to 3% is receiving bipartisan support. However, local voters would have to approve the changes through ballot measure.
Colorado
A measure to double Eagle County’s lodging tax from 2% to 4% was passed by voters in November.
Hawaii
The tax on hotel rooms and vacation rentals in Hawaii will increase 0.75%, for a total levy of 11%.
New York
Saratoga County’s hotel occupancy tax is set to increase from 1% to 3%.
California
San Diego’s hotel-room tax is set to increase, with rates ranging from 11.75% to 13.75%, depending on the area. Menlo County and San Mateo County will also raise their lodgings tax from 14.5% to 15.5%.
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How much does a vacation in the U.S. cost?
According to travel site Budget Your Trip, travelers in the U.S. spend between $848 and $6,486 for a one week trip, with an average spend of $2,274 (2). For a “mid-range” budget, the site recommends planning to spend about $325 a day, which includes “the cost of a typical hotel, normal restaurants, and a variety of major attractions.” For accommodations, the site estimates that hotel stays cost an average of $171; high season prices are about $319 (3).
Most of the lodgings tax changes for 2026 are likely to result in accommodations bills that are only slightly higher, according to Newsweek. Still, it is a good idea to take into account what taxes you will be subject to as a tourist when you’re traveling.
The impact on the tourism industry
Any increase in costs for tourists could impact the tourism industry, which faced significant challenges in 2025. According to Department of Commerce data, the U.S. saw about 1 million fewer visitors as of June 2025, compared to 2024 (4). This is a significant decline, given that the department says that every 40 international visits support one U.S. job.
A brief from the National Conference of State Legislatures also notes that high tourism taxes can deter both visitors and business travelers, as well as large events and conventions, impacting local businesses dependent on tourist spending (5).
Building a budget for your trip
A CNBC report advises that travelers tax local tourist-related taxes into account when budgeting for a trip (6). Other fees to keep in mind include restaurant service charges, resort fees, foreign transaction fees and parking.
Another way you can plan to stay on budget for your next vacation is to build an overage right into your budget, in case you end up running into unexpected expenses. This could be anything from a souvenir you can’t pass up, to a meal that is pricier than you planned for.
And don’t forget the classic ways to travel on a budget: book flights and hotels far in advance, aim to fly on weekdays when possible, and travel to destinations outside of their peak seasons. While you’re there, look for low-cost attractions such as public parks, galleries and museums — and check whether they have days or times with free entry.
While it’s becoming more costly to travel, it’s still possible to have a good time staying closer to home — even if slightly higher taxes increase the cost of domestic travel in 2026.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Newsweek (1); Budget Your Trip (2); Budget Your Trip (3); International Trade Administration (4); National Conference of State Legislatures (5); CNBC (6).
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
