Michigan Joins Montana, New York, Florida, Hawaii, California, And Others To Change Us Travel Dynamics By Implementing New Tourism And Hotel Taxes Starting In 2026: Everything You Need To Know

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Published on November 17, 2025

 everything you request to know

Michigan joins Montana, New York, Florida, Hawaii, California, and others to alteration US recreation dynamics by implementing caller tourism and edifice taxes starting successful 2026. These changes are aimed astatine boosting section gross and addressing infrastructure and tourism needs. With nan emergence successful taxes crossed various states, including increases successful nan Lodging Facility Use Tax and Transient Occupancy Taxes, section governments are seeking caller ways to money basal services, specified arsenic homelessness prevention, biology initiatives, and tourism promotion. As these states displacement their attraction from accepted backing methods, travelers tin expect changes that will effect accommodation costs and wide recreation expenses successful nan coming years.

Michigan: Lodging Facility Use Tax Starting 2026

In Michigan, nan Lodging Facility Use Tax (also known arsenic nan furniture tax) remains astatine nan existent 4% rate pinch nary confirmed increases for 2026. However, location are discussions astir redirecting a information of lodging taxation gross toward spot taxation relief, which could impact costs for tourism promotion and related services. This imaginable displacement successful backing whitethorn effect nan state’s expertise to marketplace itself arsenic a tourer destination while providing spot taxation alleviation to residents and spot owners.

Tax / FeeChange taking effect successful 2026Notes & Source
Lodging Facility Use Tax (commonly nan “bed tax”)The existent 4% rate remains unchanged. No publically confirmed summation specifically for 2026.Statewide taxation connected lodging accommodation utilized for tourism promotion.
Property Tax connected Short-Term RentalsHigher rates for short-term rentals not qualifying arsenic “homesteads” starting successful 2026.Affects short-term rental properties utilized for tourism.

Montana: Lodging Facility Use Tax Changes Starting 2026

Montana‘s Lodging Facility Use Tax (bed tax) remains astatine a accordant 4% rate, pinch nary contiguous plans to summation nan complaint successful 2026. However, location are proposals to redirect lodging taxation gross towards spot taxation relief, which could trim costs disposable for tourism promotion. This displacement could person a important effect connected tourism backing successful Montana, perchance affecting trading initiatives that pull visitors to nan state’s celebrated destinations.

Tax / FeeChange taking effect successful 2026Notes & Source
Lodging Facility Use Tax (commonly nan “bed tax”)The existent 4% rate remains unchanged. No publically confirmed summation for 2026.A taxation connected edifice stays utilized to money tourism promotion and film-related activities.
Redirecting Lodging Tax RevenueProposal to redirect ample shares of lodging taxation revenues to spot taxation alleviation starting successful 2026.Could effect nan backing for tourism‑related services.

New York: Hotel Occupancy Tax Changes Starting 2026

New York is expanding section edifice taxes successful immoderate areas starting successful 2026. In Saratoga County, nan hotel occupancy taxation (bed tax) will emergence from 1% to 3%, affecting visitors staying successful hotels and short-term rentals. This summation is aimed astatine generating much gross for nan region’s tourism initiatives. While this alteration is county-specific, it will still person a important effect connected visitors visiting Saratoga County, which is simply a celebrated destination for some leisure and taste events.

JurisdictionTax changeEffective dateNotes / charismatic source
Saratoga County (within New York State)Increase of section edifice occupancy taxation (bed tax) from 1% to 3%January 2026Affects hotels and short-term rentals successful nan county.

Florida: Tourist Development Tax (TDT) Changes Starting 2026

In Florida, important changes are expected for tourism-related taxes starting successful 2026. The state’s Tourist Development Tax (TDT) gross will nary longer beryllium chiefly allocated to tourism promotion and infrastructure. Instead, counties will beryllium required to usage at slightest 75% of TDT costs for spot taxation relief, shifting nan attraction distant from accepted tourism marketing. Additionally, nan authorities is proposing to region nan fixed percent request for tourism promotion, providing section governments pinch much elasticity successful really they utilize these funds. These changes purpose to relieve spot owners and redirect tourism-generated funds.

ItemChange taking effect 2026Notes / source
Tourist Development Tax (TDT)Counties required to usage at slightest 75% of TDT gross for spot taxation relief, alternatively of tourism promotion.Starting successful FY 2026‑27, changes really TDT costs are allocated, shifting attraction distant from tourism advertizing and infrastructure.
Tourist Promotion Tax RequirementRemoval of nan instruction to walk a fixed percent connected tourism promotion.The measure proposes greater elasticity successful really TDT costs tin beryllium allocated, including imaginable diversions to spot taxation relief.

California: Transient Occupancy Tax (TOT) Changes Starting 2026

California is introducing accrued edifice and accommodation taxes successful cardinal cities, affecting visitors starting successful 2026. In Menlo Park, nan Transient Occupancy Tax (TOT) will summation from 14.5% to 15.5%, impacting edifice stays and short-term rentals. In San Diego, nan hotel room taxation (TOT) will emergence to support infrastructure and homelessness services, pinch nan complaint varying by location. These changes bespeak California’s efforts to make much gross from tourism while addressing section needs specified arsenic municipality improvement and homelessness prevention.

JurisdictionTax changeStart dateNotes / source
Menlo Park, California (San Mateo County)Increase successful nan Transient Occupancy Tax (TOT) from 14.5% to 15.5%From January 2026Affects edifice guests and short-term rentals.
San Diego, California CityIncrease successful edifice room taxation (TOT) to support infrastructure & homelessness services. The complaint will alteration based connected location: 11.75% to 13.75%From May 2025 (affects FY 2026)Applies to edifice stays adjacent nan Convention Center and different cardinal areas.

Hawaii: Transient Accommodations Tax (TAT) Changes Starting 2026

Hawaii is implementing a caller taxation building for tourism-related services starting successful 2026. The Transient Accommodations Tax (TAT) will summation by 0.75%, raising nan full complaint to 11% for edifice stays and picnic rentals. This other levy is intended to support biology protection efforts, specified arsenic shoreline restoration and wildfire mitigation. Additionally, Hawaii will enforce an 11% taxation connected cruise vessel bills erstwhile ships are docked successful Hawaiian ports, aligning nan taxation pinch nan accommodation taxation to further money biology initiatives.

JurisdictionTax changeEffective dateNotes / source
Statewide (Hawaii)Additional 0.75% to nan Transient Accommodations Tax (TAT), raising nan complaint from 10.25% to 11% for edifice stays and picnic rentals.1 January 2026Part of a broader biology inaugural to money climate-resilience efforts.
Statewide (Hawaii)New 11% taxation connected cruise vessel bills for ships docked successful Hawaiian ports.July 2026Aligns cruise taxation pinch nan accommodation tax, supporting biology initiatives.

Other States’ Tourism Tax Changes Starting successful 2026

Several different states are besides exploring aliases implementing changes to their tourism and hotel-related taxes, aiming to equilibrium gross procreation pinch nan needs of section economies. For instance, Texas is considering an summation successful edifice occupancy taxes successful high-tourism areas for illustration Austin and San Antonio to money metropolis infrastructure improvements. Nevada is looking astatine expanding taxes connected short-term rentals arsenic a measurement to make much gross for nationalist services and tourism development. Tennessee plans to summation its state-level edifice taxation to support tourism trading campaigns, peculiarly astir awesome events and conventions. These changes bespeak a broader inclination of states utilizing tourism taxes to reside section infrastructure needs while maintaining nan entreaty of their destinations for visitors.

Michigan joins Montana, New York, Florida, Hawaii, California, and others to alteration US recreation dynamics by implementing caller tourism and edifice taxes starting successful 2026. These changes are aimed astatine boosting section gross and addressing infrastructure and tourism needs.

Conclusion

Michigan joins Montana, New York, Florida, Hawaii, California, and others successful changing US recreation dynamics by implementing caller tourism and edifice taxes starting successful 2026. These adjustments bespeak a broader inclination crossed nan country, wherever states are aiming to boost section gross and reside basal needs specified arsenic infrastructure improvements, homelessness prevention, and enhanced tourism services. As tourism taxes rise, travelers will request to see these changes erstwhile readying trips, while section governments look to equilibrium nan needs of residents and visitors alike. With these shifts successful taxation policies, nan scenery of US tourism is evolving, and nan semipermanent effect will proceed to style some nan recreation acquisition and section economies.

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