The Hawaii cruise ship green fee — the 11% climate impact tax tied to Act 96 — is still blocked. Governor Josh Green signed Act 96 into law last May, raising the state Transient Accommodations Tax to 11% and, for the first time, applying that tax to cruise ship fares for time spent in Hawaiʻi waters. It was billed as one of the first climate-impact fees on tourism in the country. The state Department of Taxation implementation announcement confirms the hotel and vacation-rental increase took effect on January 1, 2026, while the cruise provision was written into the same law.

Hotels and vacation rentals are paying the higher rate. Cruise ships are not. A federal appeals court blocked enforcement on New Year’s Eve, and the legal fight is still going. The important June 2026 update for travelers is simple: the percentage-based cruise green fee remains blocked, and the Legislature’s 2026 attempt to replace it with a flat passenger fee stalled before final passage.

Act 96 applies the state TAT to gross cruise fares, prorated for the time the vessel is in Hawaiʻi waters. The rate is 11%, and county TAT surcharges can add up to 3% more on qualifying transient accommodations. In plain English, the state tried to treat a cruise cabin like a hotel room for the Hawaiʻi portion of the trip.

On a 7-day inter-island cruise with 5 days in Hawaiʻi ports, a $2,000 fare would carry about $157 in new state tax (11% × 5/7). On a 15-day round-trip from the West Coast with the same 5 Hawaiʻi port days, the prorated bite drops to about $73 on the same fare — still a meaningful add on top of existing port fees.

The lodging-tax increase is meant to fund climate and resilience work, including wildfire risk reduction, shoreline protection, water infrastructure, and environmental restoration. The Green Fee Advisory Council advises on that spending.

The Cruise Lines International Association sued the state, arguing the tax violates the U.S. Constitution by taxing cruise ships for entering Hawaiʻi ports and by reaching fares paid for interstate or international voyages. A federal district judge initially allowed the law to proceed, but a Ninth Circuit panel granted an injunction pending appeal on December 31, 2025 — one day before the cruise portion was set to take effect.

The legal argument centers on whether a state can tax the fare you paid to a cruise line for time spent in the state’s waters, when the voyage originated elsewhere. CLIA’s position: this is a tax on interstate commerce, and only Congress can regulate that. Hawaii’s position: it’s an accommodation tax — no different from what hotels pay — applied to the nights you sleep in Hawaiian jurisdiction.

The case is still being litigated. No final ruling has resolved whether Hawaiʻi can collect the cruise-fare TAT.

While the courts sort out the percentage-based tax, Hawaiʻi lawmakers tried a Plan B during the 2026 session. SB2698 would have assessed a flat passenger head fee against cruise ships docking in commercial harbors instead of applying the TAT to prorated cruise fares. The amended bill text put that fee at $10 per passenger.

The math was straightforward. The 11% tax was projected to bring in roughly $26 million from cruise ships in fiscal year 2027 based on legislative estimates reported by Civil Beat. A $10 passenger fee would have generated closer to $10 million by the same coverage.

That backup plan did not make it across the finish line in 2026. Civil Beat reported in May that the bill passed both chambers but stalled in conference, where House and Senate negotiators try to settle final differences. Lawmakers may bring the idea back in 2027, especially if the cruise industry wins the lawsuit, but there is no new flat passenger fee being collected right now.

Right now, cruise passengers are not paying the green fee. The court injunction is active. If you have a Hawaiʻi cruise booked for summer or early fall 2026, you should not see an 11% climate surcharge tied to Act 96 on your cruise fare.

That could change later. If the state wins the appeal, the cruise-fare TAT could come back into play. If lawmakers revive and pass the passenger-fee alternative, you might eventually see a flat per-passenger charge based on port calls. But as of this update, neither one is being collected.

Norwegian Cruise Line’s Pride of America is the only large U.S.-flagged ship running year-round 7-day inter-island itineraries out of Honolulu, and it would carry the heaviest exposure to a percentage tax because nearly the entire cruise sits in Hawaiʻi waters. West Coast round-trip sailings — typically 15-17 days via Princess, Holland America, or Royal Caribbean — would see a smaller prorated bill because most of the voyage is spent at sea or outside Hawaiian jurisdiction.

The 11% state TAT is already hitting hotel and vacation rental guests. Combined with county surcharges and the 4.712% General Excise Tax, the total tax on accommodations runs 18-18.5% depending on the island. On a $300/night hotel room, that’s about $55 per night in taxes.

The policy question is whether cruise tourism should contribute through the same accommodation-tax structure as hotels or through a different harbor/passenger fee. Cruise ships use harbor infrastructure, and passengers visit state parks, beaches, and county roads during port calls. The green fee was designed to make visitor activity contribute to the environmental and climate costs Hawaiʻi is already absorbing.

Whether that eventually happens through the 11% fare tax, a revived passenger fee, or another structure is still unresolved.

If you’re comparing a cruise to a land-based Hawaii trip, factor in the tax uncertainty. Hotel guests know exactly what they’ll pay — the 11% state TAT is locked in. Cruise passengers are in limbo on this specific green-fee question.

For summer and early fall 2026 sailings, no Act 96 cruise green fee is being collected right now. If you’re booking farther out, build in a buffer for potential taxes, port fees, or a revived passenger charge, and read the “taxes, fees, and port expenses” line before you pay. Hawaiʻi’s ports are open, and the major cruise itineraries have not changed because of this court fight.