Hotel Guests in Connecticut Pay the Highest State Lodging Tax
Skift Take
Cities in California and New York may have some of the highest hotel lodging taxes, but when it comes to what states charge for these taxes, other parts of the country dig deeper into guests’ wallets.
Connecticut had the highest state lodging, or occupancy, tax rate, 15%, of any state in 2013, and that was highlighted in the 2014 HVS Lodging Tax Report, which looked at lodging taxes across the states.
In fact, every New England state except Massachusetts ranks in the top 10 for highest occupancy tax rates; Massachusetts came in at 5.7%. Hawaii has the second highest lodging taxes, including sales and occupancy tax, at 13.25%, followed by Rhode Island at 13%.
Alaska and California don’t impose a state lodging or sales tax on hotel guests, the only two states foregoing both money-makers as taxes are levied at the municipal level. Some 22 states charge lodging taxes, while the remaining 26 charge a sales tax instead.
Hawaii and Louisiana had the highest year-over-year increases in lodging tax, with Hawaii at 14.6% and Louisiana at 12.35%. Texas and Hawaii had the highest lodging tax revenue for fiscal 2013, at $450.1 million and $354.1 million, respectively.
Cities with the highest year-over-year increases in lodging tax revenue are Portland, Oregon, Salt Lake City and Richmond, Virginia at 34.59%, 23.77% and 22.91%, respectively.
Many states and local jurisdictions see lodging taxes as a way to fund things like the construction of sports stadiums and a bevy of non tourism-related projects
States Ranked by Total Sales and Lodging Tax Rates on Accommodations 2013
| Rank | State | Sales Tax Rate | Lodging Tax Rate | Total Rate |
|---|---|---|---|---|
| 1 | Connecticut | N/A | 15% | 15% |
| 2 | Hawaii | 4% | 9.25% | 13.25% |
| 3 | Rhode Island | 7% | 6% | 13% |
| 4 | Maine | 5% | 7% | 12% |
| 4 | New Jersey | 7% | 5% | 12% |
| 6 | New Hampshire | N/A | 9% | 9% |
| 6 | Vermont | N/A | 9% | 9% |
| 8 | Arkansas | 6% | 2% | 8% |
| 8 | Delaware | N/A | 8% | 8% |
| 8 | Idaho | 6% | 2% | 8% |
Source: HVS
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