Hawaii Cruise Tax Delayed While Court Processes CLIA Appeal

An 11% tax on Hawaii cruise passengers, which was meant to go into effect on Jan. 1, 2026, has been delayed while the federal court processes an appeal by the Cruise Line International Association. 

Last week, a U.S. District Court judge ruled in favor of the tax on cruise passengers, which adds a 0.75% “green fee” to the tax paid by hotel and short-term rental guests, bringing the total to 11%. CLIA then filed a notice of appeal, and on Dec. 31, the Ninth Appellate Court granted motions for preliminary injunctions from both CLIA and the U.S.  Department of Justice, which stopped the tax from taking effect on Jan. 1. 

In an email to Travel Market Report, a CLIA spokesperson said that the organization is “gratified by the Ninth Circuit’s decision to issue an injunction against Hawaii’s Act 96 while our appeal proceeds.” 

CLIA has been outspoken against the additional taxes on cruise passengers in the state, noting that cruise tourism generates nearly $1 billion in total economic impact for Hawaii, supporting thousands of local jobs. 

“This case involves important questions about how federal and state laws interact in regulating maritime commerce—principles rooted in long-standing constitutional safeguards that protect free and open ports nationwide,” CLIA said in a statement. “On behalf of its member cruise lines, CLIA will continue to pursue this matter constructively through the courts while working with Hawai‘i to support local communities and sustainable tourism.” 

The new tax policy would be applied to cruise passengers for each day their cruise ship is in Hawaiian waters and allow local governments to add an additional 3% surcharge if they choose. The tax is expected to raise about $100 million annually.