Look out for these taxes while vacationing

July 12, 2010

Spontaneous getaways definitely are appealing, but for most of us, vacations take planning.

Not only do we have to reach a family consensus on where to go and when to take the trip, we also have to make financial arrangements.

If you're in the midst of summer break budgeting, you'd better factor in a few more dollars for taxes.

This year, added car rental levies are the most daunting expenses, according to Deborah Weinstein in Travel tax traps to avoid this summer.

Weinstein cites research by the National Business Travel Association that shows the national average tax rate on car rentals — a combination of state, local and car rental company levies — at the top 50 business travel airports has reached 13.8 percent.

The hike is not a surprise as cash-strapped cities and states are taxing everything they can. Plus, it's always better politically to put the tax burden on visitors who are just passing through.

Other tax increase to be on the lookout for as you travel include:

  • Hotel taxes. These levies are the most obvious designed to ding tourists, not voting locals.
  • Online hotel booking fees. Cities are taking legal action to get what they say is their fair share from online lodging reservation sites.
  • Timeshare tax. This appears to be limited to Florida, for the moment anyway.
  • Camping fees. Trying to cut lodging costs by camping still can cost you, as several states have taken to charging (or charging more) for spots to pitch tents in their parks.
  • Airline tickets taxes. This is no secret, but the rates seem to be multiplying, now including a federal ticket tax, a "9/11 fee" for security services and segment taxes.
  • Restaurant taxes. These can cost locals looking to escape the kitchen, too, but the prime target is out-of-towners who must eat out.
  • Sporting fees. If you hunt or fish, expect to pay more for state licenses.

You can find details on these taxes and how they've grown in a Forbes slide show.

Good tax news for seafaring vacationers: If you're planning to see the natural wonders of Alaska from the deck of a cruise ship, there's some good tax news for you.

Alaska Gov. Sean Parnell last month signed a measure into law that drops the state's per passenger tax from $46 to $34.50. There are even deeper offsets for ships stopping in at least one of two popular ports, Juneau and Ketchikan.

The tax had been approved by Alaskans in 2006 as a way to help finance port infrastructure needed to accommodate large ships.

The cruise industry, however, was ready to go to court to fight the Last Frontier's tax as onerous and discriminatory against larger vessels. The lawsuit was scrapped after Parnell signed the lower-tax bill.

Regardless of where and how you take your summer break, bring along a few extra dollars just in case. And enjoy yourself!

Related posts:

Want to tell your friends about this blog post? Click the Tweet This or Digg This buttons below or use the Share This icon to spread the word via e-mail, Facebook and other popular applications. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Vacation and travelling on holidays can be costly and expensive so you are indeed right that you need not only reach the family consensus and agree on where you’re taking the trip but that you have to financially plan for it too.
    However, it may be expensive I still think that it’s the best reward you can give your self for all the hardworks you’ve been doing.

Leave your comment