A growing number of US destinations are lifting their hotel tax — often called a bed tax, tourist tax or occupancy tax — adding double-digit percentages and nightly fees to room bills.

Washington DC now charges 15.95% through 30 September 2027, while San Diego’s tiered increase won a California appeals court ruling in October 2025. Industry research suggests the average lodging levy in the US is now above 15%.

San Diego ruling underscores momentum for local increases

San Diego’s Measure C raises the transient occupancy tax from 10.5% to between 11.75% and 13.75%, with the highest rate closest to the convention centre; proceeds are earmarked for convention expansion and homelessness programmes.

A state appeals court upheld the voter-approved measure on 6 October 2025, and the city began collecting higher rates earlier in the year.

Rate snapshots in major us markets

Hotel tax levels vary widely by city and by the mix of state, county and city levies:

• Washington DC: 15.95% on transient accommodations, extended to 30 September 2027. A MarketWatch analysis calculates roughly $138 in bed taxes on a typical four-night stay using average rates.
• New York City: combined state and city sales taxes of 8.875% plus a city hotel room occupancy tax of 5.875%, and per-night fees of $2 (city) and $1.50 (state “unit fee”). Many guides summarise this as ~14.75% plus $3.50 nightly.
• Los Angeles (city): transient occupancy tax is 14% (some online summaries round higher, but the city lists 14%).
• Las Vegas (Clark County): most properties charge 13%–13.38%; the Primary Gaming Corridor (Strip area) is 13.38%.
• Aurora, Illinois: city moved to double its hotel tax from 3% to 6%, with implementation set for 1 January 2026.
• Oklahoma City: voters increased the city levy from 5.5% to 9.25%, effective 1 October 2024.
• San Antonio/Bexar County (Texas): voters on 4 November 2025 are weighing propositions that would raise the county hotel tax component toward a combined maximum of 17% to fund venue projects.

State rules and international parallels

Some large states do not levy a statewide hotel tax, leaving it to cities and counties.

California’s transient occupancy taxes are local; New York State likewise relies on local authorisation, which is why New York City layers its own occupancy charges on top of sales tax.

By contrast, Hawaii applies a statewide transient accommodations tax of 10.25% (rising to 11% in 2026 under a climate-funding law) and counties including Honolulu add their own 3% surcharges.

Together with general excise tax, Hawaii’s combined charges are among the highest in the US.

Traveller impact and behaviour

City tourism officials argue that higher hotel taxes fund visitor services and marketing without raising local property taxes.

Analysts say the national average lodging levy climbed to about 15.22% in 2024.

Consumer reporting and city leaders also note early evidence of travellers shifting stays to suburbs or alternative accommodation to manage costs, while transparency concerns persist because extra charges often appear late in the booking flow.