Nevada Joins Other States in New Travel Charges to Boost U.S. Tourism Growth in 2026

In 2026, a wave of new travel charges are set to roll out across several states, with Nevada joining Tennessee, New Jersey, Texas, Massachusetts, South Carolina, and Illinois in this endeavor. These adjustments aim to revitalize the U.S. tourism sector, which has been on a recovery trajectory, accommodating both domestic and international visitors eager to explore the diverse attractions the country offers. This article delves into these sweeping changes, providing a comprehensive overview of how they will impact travel and tourism across the nation.

The Big Picture: A Response to Rising Demand

As travel resumes post-pandemic, states are keen to adapt to the surging demand for tourism. New taxes, surcharges, and fees will be implemented on various aspects of the travel experience, including lodging, transportation, and recreational services. The rationale behind these changes is twofold: to generate essential revenue for enhancing tourism infrastructure and to improve visitor experiences, ensuring that destinations remain competitive.

Nevada: Adjusting to a Post-Formula 1 Economy

Nevada’s transformation is particularly noteworthy as Las Vegas transitions into a post-Formula 1 economy. In 2026, the state will maintain its 13.38% "Strip" tax on hotel stays along the famous Las Vegas Strip. This tax is a staple for visitors, contributing significantly to local coffers. Furthermore, upward adjustments in resort and parking fees are anticipated, raising the question of whether dynamic pricing could be introduced to better accommodate the varied preferences of price-sensitive tourists.

Key Charges in Nevada:

• The “Strip” Tax: 13.38% on hotels
• Resort Fees: Ranging from $40–$50+ per night
• Airport Car Rental Fees: Adjustments to facility charges at Harry Reid International Airport

The revenue generated from these charges will funnel into infrastructure projects intended to attract larger conventions, showcasing Nevada’s effort to sustain its status as an entertainment mecca.

Tennessee: Modernizing Tourism with a Focus on Safety

Tennessee is prioritizing the modernization of its tourism infrastructure in 2026, implementing the HB 1628 legislation aimed at streamlining tourism marketing across its nine development districts. This includes a focus on local attractions such as BBQ trails and music trails.

Safety Initiatives:

An interesting component of the changes is the "Ink of Hope Act," which mandates training for tourism-adjacent workers on human trafficking awareness. While Tennessee’s base sales tax is 7%, local taxes can add up to 2.75%, particularly in tourist hubs like Nashville.

Tennessee’s Revenue Structure:

• State Sales Tax: 7%
• Local Sales Tax: Up to 2.75%
• Regional Visitor Fees: Varies

This combination of safety enhancements and tax regulations positions Tennessee not only as a vibrant tourist destination but also as a responsible steward of visitor welfare.

New Jersey: Surcharges and Funding Shifts

The state of New Jersey will introduce a $3 per day hotel surcharge for visitors in cities with international airports, starting January 1, 2026. This surcharge is an additional layer on top of existing state taxes and aims to boost local tourism initiatives.

Key Changes Include:

• Newark Hotel Surcharge: $3 per day
• Hotel/Motel Occupancy Fee: Varies, but a portion will redirect to arts and tourism funding
• Transient Space Marketplace Tax: Airbnb and similar platforms will be required to collect local taxes

These new funding strategies will not only improve tourism infrastructure but also close loopholes concerning vacation rentals, which has long been a contentious issue.

Texas: Stable Rates but Increased Road Travel Costs

In Texas, tax rates remain relatively steady, with the notable exception of an increase in mileage reimbursement rates to 72.5 cents per mile, affecting both travelers and rental car costs. The state’s existing 6% occupancy tax will remain, with some cities, like San Antonio and Austin, adding local taxes that can push totals to 17%.

Texas Tax Overview:

• Mileage Reimbursement Rate: 72.5 cents per mile
• State Occupancy Tax: 6%
• Local Lodging Taxes: Varies; can reach 17% in certain areas

Texas aims to leverage the revenue generated from these taxes for venue projects to attract larger conventions, enhancing its appeal as a prime destination for business and leisure travelers alike.

Massachusetts: Tax Adjustments Amid FIFA World Cup Excitement

In preparation for hosting the FIFA World Cup in 2026, Massachusetts is activating Tourism Destination Marketing Districts (TDMD), which will impose up to a 2% special assessment on room occupancy taxes in key districts such as Boston and Cambridge.

Impending Changes in Massachusetts:

• TDMD Assessment: Up to 2%
• State Sales Tax: 6.25%
• Local Meals Tax: 0.75%

These measures aim to boost local tourism promotion while preparing the state for a significant influx of visitors during the World Cup.

South Carolina: Focus on Balancing Growth with Local Concerns

In 2026, South Carolina will introduce a Local Option Tourism Tax that allows municipalities to use up to 50% of tourism taxes to offset resident property taxes in tourist-heavy areas. This initiative seeks to balance the needs of residents with those of tourists, ensuring that both share the costs of maintaining local services.

Key Charges in South Carolina:

• Local Option Tourism Tax: Up to 50% for property tax relief
• State Sales Tax: 6.25%
• Local Meals Tax: 0.75%
• Lodging Tax: Between 7% to 12%

This progressive approach reflects South Carolina’s commitment to sustainable tourism growth, prioritizing both visitor experience and resident welfare.

Illinois: Bold Changes to Travel Taxation

Illinois is implementing some of the most aggressive changes to its tourism sector in 2026. A new “15% Penalty” rule will impose a tax when travel providers fail to deliver location-specific data. This could lead to increased costs for consumers booking through third-party sites.

Key Tax Features in Illinois:

• 15% Penalty Tax: Applied under specific conditions
• Tourism Tax Credit: Up to $5,000 for travelers spending over 50 miles from home
• City Tourism Tax in Aurora: Doubled to 6%

These changes underline Illinois’ focus on encouraging domestic tourism while tightening regulatory measures for remote travel services.

As states across the U.S. adapt to the post-pandemic travel landscape, these newly implemented charges aim not only to enhance local economies but also to ensure that infrastructure and visitor services keep pace with increasing demand. As travelers plan their future trips, understanding these changes will be essential in budgeting and optimizing their travel experiences across these evolving destinations.