Hate Hotel Taxes? Travel To These 2 Sunny States

Drazen_ / Getty Images
Drazen_ / Getty Images

When budgeting for your vacations, you likely factor in costs like airfare or gas and tolls, food and accommodations. You might search travel apps or use loyalty programs to get the best hotel rates.

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But you also might have noticed the discrepancy between the listed price and the actual price you pay at checkout. That’s likely due to the taxes charged by many states, cities, and municipalities. Here’s what you need to know about hotel taxes and how to avoid them.

Hotel Taxes

The charges are typically listed on your bill as state sales tax, state lodging tax, bed tax, occupancy tax, hotel tax, or transient occupancy tax. Some states even combine these charges.

In Connecticut, you’ll pay a state sales tax plus a transient occupancy tax. The taxes, combined, range from 9% in Maine up to 23% in Idaho and Alabama. The HawaiianIslands.com blog recently gathered the hotel taxes for each state to help you budget better for your next vacation.

Beware of Other Charges

On top of taxes, you might pay tourism fees, resort fees, or destination fees. These are often charged at a flat rate per night and sometimes, you’ll pay an additional fee for every person in your room, UpgradedNights.com warned in a blog post.

Some of the top hotel chains including Marriott, Hyatt, and Hilton, charge additional resort fees. Some hotel chains don’t show these fees until you get ready to check out.

Travel to California and Nevada

Fortunately, there are two places you can visit with no hotel taxes: California and Nevada.

In addition to having economies heavily fueled by tourism, these states enjoy warm weather year-round and plenty of sunshine. You can often secure cheap flights to either state. In particular, Las Vegas is known for affordable airfare and accommodations to draw in tourists who are expected to spend their money gambling.

If you’re looking to save money on your trip, avoid the casinos. Instead, enjoy the variety of shows or take a day trip to see the Grand Canyon, Hoover Dam, or Mojave Desert.

Save Money on Your Next Vacation

If California or Nevada isn’t high on your bucket list of travel destinations, there are other ways to save money on your next trip. First, use travel booking apps to find the best deals and leverage rewards programs for added benefits. Apps like Rakuten can also give you cash back on hotel reservations.

When you’re booking your hotel, remember to compare all costs. Some hotels in major cities charge for parking, while others waive the fee for guests. If there’s an on-site restaurant, you might pay more for meals there than you would if you leave the resort and experiment with local cuisine.

Finally, booking a hotel with free breakfast can save you $10 to $20 or more per person, per day, so that you can save your money for attractions or a gourmet dinner. Some travelers even stow bagels, fruit or yogurt from the breakfast in their bag for a convenient, free lunch or snack.

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This article originally appeared on GOBankingRates.com: Hate Hotel Taxes? Travel To These 2 Sunny States

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