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Washington Joins California, New York, Hawaii, Colorado, Ohio, and Other Key States in Implementing and Raising Accommodation Taxes Across the US Starting in 2026
In an unexpected twist for visitors and the travel industry alike, Washington this week announced it will adopt a new accommodation tax regime starting in early 2026, joining states such as California, New York, Hawaii, Colorado and Ohio in reshaping how travel and tourism are funded. For travellers planning holidays or business trips, these changes mean paying more for stays in hotels, motels and short‑term rentals as states channel additional tax revenue into tourism infrastructure, visitor services and public amenities. The move comes at a time when many US destinations are expanding capacity and gearing up for increased travel demand in the coming years.
Why Accommodation Taxes Are Rising Across the United States
Across multiple states, policymakers are turning to accommodation taxes — sometimes called lodging or hotel taxes — as a tool to boost local tourism funding and improve visitor services. These taxes are typically applied to short‑term stays such as hotel rooms, bed and breakfasts, motels and short‑term rental properties. Traditionally used to support marketing and destination promotion, these levies are now being expanded to cover infrastructure projects, tourism‑related facilities and enhancements designed to elevate the visitor experience.
Washington’s New Lodging Tax Framework for 2026
From 1 January 2026, Washington state will see changes to local sales and use taxes, including those affecting lodging sales. While Washington does not impose a single statewide lodging tax, local jurisdictions will implement or adjust their combined sales and lodging tax rates, which in many areas will range between 8.9 per cent and 11.7 per cent on accommodation charges. These adjustments are intended to support law enforcement programmes, tourism promotion areas and other local needs, reflecting a broader strategy of leveraging tourism dollars to strengthen community services across the state.
National Trend: States Reassessing Tourism Funding Models
Washington’s move to hike or implement lodging taxes fits within a larger pattern seen across the United States, where travel‑oriented taxes are gaining traction as a revenue source. California, New York, Hawaii, Colorado and Ohio are among the states that have recently announced new or increased accommodation levies. These measures will affect millions of visitors who stay in paid accommodation, with additional funds earmarked for tourism infrastructure, promotion campaigns and visitor amenities that aim to keep destinations competitive and attractive.
California’s Strategic Increase to Support Local Services
California, one of the country’s busiest travel destinations with iconic cities and natural attractions drawing global visitors, has approved higher transient occupancy taxes in several regions. These funds will be diverted into enhancing public services and community assets, from major airport access improvements to vibrant cultural experiences that tourists rely upon.
New York’s Lodging Tax Adjustments to Meet Growing Demand
New York state, and New York City in particular, has also embraced adjustments in accommodation taxation to cope with visitor demand that continues to grow beyond pre‑pandemic levels. The increased revenue will contribute to city and state budgets for tourism development, cultural programming and upgrades to key tourist corridors, ensuring that New York remains one of the most dynamic urban travel destinations in the world.
Hawaii’s High‑Profile Tax Changes With Broader Policy Goals
Hawaii’s accommodation tax adjustments have captured national attention, not only because of the size of the levies but also because they support environmental, climate resilience and sustainability projects. The state’s lodging tax will rise to new highs as part of funding strategies that address shoreline restoration, wildfire defence mechanisms and community protection measures. This approach marks a unique blending of tourism taxation with broader policy goals that extend beyond traditional tourism marketing — a strategy that could influence how other states design their tax and tourism funding frameworks.
Colorado and Ohio Join the Tourism Tax Movement
Both Colorado and Ohio have announced increases to existing lodging or accommodation taxes to help finance tourism‑related programmes and local development efforts. In Colorado, for instance, some municipalities are increasing levies that fund tourism worker housing, marketing districts and capital development projects tied to travel and hospitality. Ohio’s tourism tax increases also aim to enhance attraction access, support local festivals and encourage extended stays that benefit regional economies.
How These Tax Changes Affect Travelers and Tourism Providers
For travellers, these accommodation tax increases mean that booking costs may be slightly higher starting next year. While taxes vary by state and locality, travellers can expect incremental additions to nightly charges when they stay in lodging establishments across affected states. For tourism providers, the increases are part of a coordinated effort to generate revenue for destination development, infrastructure upgrades and long‑term sustainability efforts — balancing the needs of residents with the expectations of a growing traveller base.
Economic and Community Impact of Increased Tourism Taxation
From local economies to state budgets, higher accommodation taxes are expected to deliver meaningful financial inflows that support not only tourism marketing but essential services such as public safety, transportation improvements and cultural programming. By redistributing tax revenues into areas that benefit both residents and visitors, policymakers aim to ensure that popular destinations remain vibrant and resilient in the face of rising tourism demand.
Future Outlook: Tourism Funding Beyond 2026
As lodging tax frameworks continue to evolve, industry observers and destination marketers are closely watching how these changes affect travel patterns, visitor satisfaction and long‑term economic performance. With destinations like Washington and others strengthening their funding base through accommodation levies, the trend could continue into and beyond 2026 as states seek to innovate in tourism financing and destination competitiveness.
For visitors planning their next trip, the coming year will bring subtle changes at checkout when booking hotels and accommodation across Washington and other US states. While travellers may initially notice higher nightly costs, these adjustments are designed to enhance experiences, expand services and build robust tourism ecosystems that benefit both locals and visitors alike. As states modernise their funding strategies and invest more in infrastructure and attractions, the promise is clear: better travel experiences and stronger communities that welcome millions of travellers for years to come.
