Nevada Joins Tennessee, New Jersey, Texas, Massachusetts, South Carolina, Illinois, and Others in Hiking and Implementing Major New Travel Charges to Boost US Tourism Growth This Year: All You Need to Know

In 2026, Nevada joins Tennessee, New Jersey, Texas, Massachusetts, South Carolina, Illinois, and other states in hiking and implementing major new travel charges to boost U.S. tourism growth. These adjustments are aimed at ensuring the continued recovery and expansion of the U.S. tourism industry, which is seeing increased demand from both domestic and international visitors. As travel rebounds, these states are introducing new measures such as special taxes, surcharges, and fees on lodging, transportation, and tourism services. With events like the Formula 1 in Nevada and major festivals across these states, these new charges are designed to fund local infrastructure projects, attract larger conventions, and enhance visitor experiences. While these measures are necessary to support tourism growth, they come with a mix of benefits and challenges for both tourists and local economies, requiring states to carefully balance revenue generation with maintaining visitor satisfaction. The following breakdown covers everything you need to know about these changes and how they will impact U.S. tourism in 2026.

Nevada: Adjusting to a Post-Formula 1 Economy

As Las Vegas adjusts to a post-Formula 1 economy, the state is looking at new measures to address the influx of visitors and the continuing rise in resort and parking fees. One of the most notable changes in 2026 is the ongoing 13.38% tax on the Strip, which has long been a staple for visitors to the city. Additionally, the state is evaluating how rising resort and parking fees may be impacting visitor numbers, potentially introducing dynamic pricing for major resorts. This shift is expected to bring more transparency and flexibility to pricing as tourists are increasingly price-sensitive. Revenue generated from 2026 travel taxes will be funneled into new venue infrastructure projects to attract conventions and large events. However, resort fees, which often range from $40–$50+ per night, will remain a hidden cost for travelers. Furthermore, airport fees for car rentals at Harry Reid International will see adjustments in 2026, with Consolidated Facility Charges subject to annual changes. These adjustments are part of Nevada’s broader effort to modernize the tourism experience while continuing to capitalize on the growing demand for entertainment and events in the state.

Tax/Charge	Rate/Amount	Description
The “Strip” Tax	13.38%	Special tax applied to properties along the Las Vegas Strip.
Resort Fees	$40–$50+ per night	Hidden fees at major resorts, charged for amenities and services.
Consolidated Facility Charges (Airport)	Variable	Car rental facility charges at Harry Reid International, subject to annual adjustments.

Tennessee: Modernizing Tourism and Focusing on Safety

Tennessee is focusing on modernizing its tourism infrastructure in 2026, with an emphasis on safety and regional tourism development. The state is implementing HB 1628, which reorganizes how Tennessee markets its nine tourism development districts. This will lead to a more specialized focus on attractions such as BBQ trails and music trails, with localized visitor fees likely to follow. One major initiative is the “Ink of Hope Act”, which mandates that tourism-adjacent workers, such as tattoo artists and hotel staff, undergo human trafficking awareness training as part of a statewide push for safe tourism. In terms of taxes, Tennessee remains a high-sales-tax state, with a 7% state tax plus up to 2.75% local taxes, bringing the total tax rate to nearly 10% for prepared food in major tourist hubs like Nashville. These efforts to enhance safety and promote specialized tourism experiences, along with the state’s high taxes, reflect Tennessee’s commitment to providing a sustainable and secure environment for visitors while also supporting local economies.

Tax/Charge	Rate/Amount	Description
State Sales Tax	7%	Base state sales tax rate.
Local Sales Tax	Up to 2.75%	Local taxes added to the base state rate, reaching nearly 10% in places like Nashville.
Regional Visitor Fees	Variable	Specialized visitor fees may apply in certain regional tourism districts.
Lodging Tax	Varies	Total lodging tax can reach up to 10% in some tourist areas.

New Jersey: Surcharges and Funding Shifts for 2026

In 2026, New Jersey is introducing several changes that will directly affect tourists, particularly those flying into the state. Newark will see the implementation of a $3 per day hotel surcharge starting January 1, 2026. This surcharge, which applies to hotels in cities of the first class with an international airport, is an additional fee on top of state sales taxes and the State Occupancy Fee. This change is expected to generate revenue to support local tourism initiatives and improve services for incoming travelers. In addition, legislation passed in 2026 (A1460) proposes redirecting 100% of the hotel/motel occupancy fee revenue directly to arts, historical heritage, and tourism funding, ensuring better maintenance of cultural sites but also increasing tax enforcement on short-term rentals like Airbnb. Additionally, new rules for transient space marketplaces will require platforms like Airbnb to collect and remit all local taxes, closing previous loopholes. These changes highlight New Jersey’s focus on enhancing tourism infrastructure while increasing accountability for short-term rental platforms.

Tax/Charge	Rate/Amount	Description
Newark Hotel Surcharge	$3 per day	Applied to hotel stays in Newark, New Jersey, starting January 1, 2026.
Hotel/Motel Occupancy Fee	Varies	Portion of occupancy fees redirected to arts, historical heritage, and tourism funding.
Transient Space Marketplace Tax	Variable	Airbnb and similar platforms must collect and remit all local taxes, closing previous loopholes.

Texas: Steady Rates and Higher Costs for Road Travelers

Texas is maintaining stable tax rates for the most part, but it is making adjustments for those traveling on the move. The 2026 mileage reimbursement rate has been increased to 72.5 cents per mile, a significant jump that will impact both rental car costs and business travel expenses. For tourists, hotel tax refunds have been simplified for state-related stays, but the standard 6% state occupancy tax will remain, with cities like Austin and San Antonio adding additional local taxes to bring the total to 17%. Texas cities, including San Antonio, are leveraging 2026 tax revenue to fund venue projects to attract larger conventions, which may lead to increased facility fees for live events and sports tickets. These measures highlight the state’s efforts to ensure that Texas remains an attractive destination for both leisure travelers and convention-goers while maintaining a consistent revenue stream from its tourism industry.

Tax/Charge	Rate/Amount	Description
Mileage Reimbursement Rate	72.5 cents per mile	Increased rate for road trips, applicable to rental surcharges and business travel.
State Occupancy Tax	6%	Standard state lodging tax rate.
Local Lodging Taxes	Varies	Cities like Austin and San Antonio add local taxes, bringing the total up to 17% in some areas.
Major Event Facility Fees	Variable	Additional fees on tickets for live events and sports, used to fund venue projects in cities like San Antonio.

Massachusetts: New Tourism Taxes and FIFA World Cup Surge

In 2026, Massachusetts is introducing several measures that will impact travelers, particularly in cities like Boston and Cambridge, as the state prepares for significant tourism events, such as the FIFA World Cup. A major initiative is the activation of Tourism Destination Marketing Districts (TDMD). These districts, including areas like Boston, will impose a special assessment of up to 2% on top of the standard room occupancy excise tax. This fee aims to fund local tourism promotion and enhance the region’s global appeal. With Boston hosting World Cup matches in 2026, travelers can expect surge pricing on local fees, and short-term rental regulations will be enforced more strictly. To support these large events, Massachusetts has also introduced a $10 million grant program. The state also continues to apply a 0.75% local meals tax, raising the total food tax to 7% in many cities, while the standard state sales tax remains at 6.25%. These adjustments, driven by major events, are designed to ensure that the state is prepared for the influx of international tourists while also supporting long-term tourism infrastructure development.

Tax/Charge	Rate/Amount	Description
Tourism Destination Marketing District Assessment (TDMD)	Up to 2%	Additional assessment on top of the standard room occupancy excise tax in designated districts like Boston and Cambridge.
State Sales Tax	6.25%	The base state sales tax rate.
Local Meals Tax	0.75%	Local meals tax applied in many cities, bringing the total to 7% for dining out.
Lodging Tax	Varies (State + Local)	State occupancy tax of 5%, with additional local taxes.
FIFA World Cup Surge Pricing	Variable	Temporary surge pricing for local fees and short-term rentals during World Cup events.

South Carolina: Balancing Tourism Growth with Property Tax Relief

South Carolina’s new legislation in 2026 aims to balance tourism growth with relief for local residents, particularly in tourist-heavy areas like Myrtle Beach and Charleston. The state is introducing a Local Option Tourism Tax that allows municipalities to allocate up to 50% of the local tourism tax to offset resident property taxes. This move is aimed at easing the financial burden on locals while generating revenue from tourists. For travelers, this means that tourism taxes are becoming a permanent fixture in resort areas, helping to ensure that the costs of maintaining public services and infrastructure are shared by both visitors and residents. South Carolina also introduced a Small Business Tax Cut of 2026, benefiting local retailers and restaurants to remain competitive against larger chains. Regarding lodging, visitors can expect total lodging taxes of around 7% to 12% depending on the county, which includes the 5% state tax plus additional local taxes. These initiatives show South Carolina’s efforts to manage tourism sustainably while ensuring local economic stability.

Tax/Charge	Rate/Amount	Description
Local Option Tourism Tax	Variable (Up to 50% for Property Tax Relief)	Up to 50% of local tourism taxes are used to offset resident property taxes in resort areas like Myrtle Beach and Charleston.
State Sales Tax	6.25%	Standard state sales tax rate.
Local Meals Tax	0.75%	Added to state sales tax, bringing total meals tax to 7% in many cities.
Lodging Tax	7% to 12%	Lodging taxes vary by county, including a 5% state tax plus local taxes.

Illinois: Aggressive Changes to Travel Taxation

Illinois is making some of the most aggressive changes to its tourism sector in 2026, particularly regarding how remote travel services are taxed. The “15% Penalty” Rule means that if a travel provider or marketplace facilitator fails to provide location-specific data for a sale, the state will impose a 15% tax on gross receipts. This could lead to increased service fees on third-party travel booking platforms as they adjust to cover this new penalty. Illinois is also introducing a tourism tax credit (HB 1212), which offers taxpayers up to $5,000 for eligible travel expenses like food, lodging, and transport if they travel more than 50 miles within the state. This is a significant incentive designed to boost domestic tourism. Additionally, Aurora, Illinois, has doubled its city tourism tax to 6%, a trend that may spread to other Chicago-adjacent cities in 2026. These efforts underscore Illinois’ intention to drive tourism within the state while also tightening up the regulatory framework for remote booking platforms and ensuring proper tax compliance across the industry.

Tax/Charge	Rate/Amount	Description
15% Penalty Tax	15%	Applied if a travel provider fails to provide specific location data for a sale, increasing service fees for third-party booking sites.
Tourism Tax Credit	Up to $5,000	Credit for eligible expenses (food, lodging, transport) for Illinois residents traveling more than 50 miles.
City Tourism Tax (Aurora)	6%	Aurora, Illinois, has doubled its city tourism tax to fund urban development.

US States Implement New Travel Charges to Boost Tourism in 2026

In 2026, Nevada, Tennessee, New Jersey, Texas, Massachusetts, South Carolina, Illinois, and other U.S. states are implementing major new travel charges as part of their strategy to boost U.S. tourism growth. These states have introduced new taxes, surcharges, and fees on lodging, transportation, and other services to fund infrastructure projects, attract large events, and improve the overall tourism experience. With an increasing number of travelers returning to the U.S., these changes are aimed at ensuring that the tourism industry continues to thrive while addressing rising demands and supporting local economies. While these new charges may impact some travelers’ budgets, they are expected to provide long-term benefits by enhancing the appeal of U.S. destinations and strengthening tourism infrastructure.

In 2026, Nevada joins Tennessee, New Jersey, Texas, Massachusetts, South Carolina, Illinois, and other U.S. states in hiking and implementing major new travel charges to boost U.S. tourism growth, addressing rising demand and infrastructure needs.

Conclusion

Nevada joins Tennessee, New Jersey, Texas, Massachusetts, South Carolina, Illinois, and other U.S. states in hiking and implementing major new travel charges to boost U.S. tourism growth in 2026. These measures are driven by the need to support growing demand, enhance local infrastructure, and ensure sustainable tourism development. While these new charges may initially impact travel costs, they are designed to fuel long-term growth by attracting larger events, improving tourist services, and strengthening the tourism sector. As states continue to adapt to post-pandemic trends, these efforts aim to balance revenue generation with providing an attractive and accessible environment for tourists.

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