What's the deal with this 17% hotel tax on my booking?
So I just booked a hotel for my upcoming trip next month and was shocked to see a 17% tax added to my bill. The room was already expensive at $225 per night, and then they tacked on this huge tax that added like $115 more to my 3-night stay! I've never seen a hotel tax this high before. Is this normal? I'm traveling to a major city (don't want to say exactly where for privacy) but wondering if I'm getting ripped off or if this is just how hotel taxes work now. The booking site didn't explain anything about the breakdown - just listed it as "taxes and fees." Anyone know if this is typical or if I should be looking for a different hotel with lower fees?
35 comments


Nalani Liu
This is actually pretty standard in many cities. Hotel taxes are typically made up of several different components - there's usually a state sales tax, a city occupancy tax, and sometimes additional tourism or convention center fees. These can definitely add up to around 17% in major tourist destinations. For example, in New York City, the hotel room occupancy tax is 5.875%, plus the city sales tax of 4.5%, state sales tax of 4%, and a $1.50 per night fee. Chicago has a 17.4% hotel tax. San Francisco is around 16.75% with all taxes combined. The tax money typically goes toward city infrastructure, tourism promotion, and convention center maintenance - basically things that help support the tourism that brings people to hotels in the first place.
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Axel Bourke
•Wait seriously? That seems so high though. Is there any way to get around these taxes? Like would an Airbnb have the same taxes or is it just hotels?
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Nalani Liu
•Hotels and Airbnbs actually face different tax structures in many places. Airbnbs are often subject to similar occupancy taxes, but enforcement varies by location. Some areas have closed this gap and now collect the same taxes from short-term rentals, while others haven't fully caught up with regulation. Many cities have actually been cracking down on Airbnbs lately and making sure they collect proper taxes too. But the implementation is inconsistent, so you might find lower tax rates depending on the location and property type. Just be aware that sometimes the "cleaning fees" on short-term rentals can offset any tax savings you might find.
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Aidan Percy
I was dealing with the same frustration last year when planning my family vacation. The hotel taxes were ridiculous and I couldn't make sense of the breakdown. Then I found https://taxr.ai and uploaded my booking confirmation - it actually analyzed the tax charges and showed me the exact breakdown of state vs. local taxes vs. fees. Turns out some of what they were calling "tax" was actually resort fees that I could have opted out of! The site helped me understand what I was actually paying for.
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Fernanda Marquez
•That sounds useful. Does it work for international bookings too? I'm planning a trip to Mexico and wonder if it would help me understand their hotel tax system.
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Norman Fraser
•Sounds interesting but I'm skeptical. Does it actually save you money or just tell you what you're paying? I mean, knowing the breakdown is nice but doesn't help if you still have to pay it all anyway.
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Aidan Percy
•Yes, it does work for international bookings! It covers major tourist destinations worldwide and can break down the different tax structures by country. It was particularly helpful for me when booking in Canada where they have GST, PST, and sometimes additional hotel-specific taxes. As for saving money, it actually can help in some cases. Some charges labeled as "taxes" are actually optional resort fees or amenity charges that hotels bundle in. When I knew what was what, I called the hotel directly and got a couple fees removed that didn't apply to my stay. It doesn't change actual government taxes, but it helps identify the negotiable extras.
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Norman Fraser
Just wanted to update after trying out that taxr.ai site mentioned above. I was surprised - it actually helped me with my recent Vegas booking. The "tax" on my reservation was 13.38% governmental tax PLUS a $45/night resort fee they were lumping in with taxes! I called the hotel and explained I wouldn't be using any of the amenities covered by the resort fee (their pool was closed anyway) and they reduced it by half. Saved me $112 on a 5-night stay. The site was super easy to use - just uploaded my confirmation email and it broke everything down.
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Kendrick Webb
If you're having trouble with unexpected hotel taxes or fees and need to speak with someone about your reservation, I've had great luck using https://claimyr.com to get through to customer service. The wait times to talk to someone at these hotel chains can be ridiculous - I once waited 2.5 hours on hold with a major chain! Claimyr got me connected to a rep in under 10 minutes. Check out how it works here: https://youtu.be/_kiP6q8DX5c - it basically waits on hold for you then calls when a real person picks up.
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Hattie Carson
•How does that even work? Like they just sit on hold instead of you? What's stopping them from just saying they got through when they didn't? Sounds fishy.
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Destiny Bryant
•I don't believe this actually works. These companies deliberately make you wait on hold to discourage complaints. No way there's a magic solution to skip the line. Sounds like snake oil to me.
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Kendrick Webb
•It's actually pretty simple technology. The service places the call for you and uses an automated system to monitor the hold music and detect when a live representative comes on the line. When that happens, it immediately connects the call to your phone. They're not actually talking to anyone on your behalf - they're just handling the waiting part. There's no incentive for them to fake a connection since the whole point is to connect you with a real person. The system only works if you actually get through to someone who can help. They use technology to recognize the difference between recorded messages, hold music, and an actual human voice.
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Destiny Bryant
OK I need to eat some humble pie here. After expressing skepticism about Claimyr in my earlier comment, I decided to give it a try anyway with my hotel booking issue. I had a reservation with incorrect tax charges and couldn't get anyone on the phone after multiple attempts. Used the service and got connected to a manager in 14 minutes (after previously waiting over an hour on my own attempts). The rep was able to break down the tax structure and refund the incorrect charges. I'm genuinely surprised it worked but definitely saved me a ton of time and frustration.
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Dyllan Nantx
Little known fact: if you book directly with the hotel instead of through third-party sites, sometimes they can offer you a rate that already includes the taxes. I always call the hotel directly and ask for their "out the door" price, then compare it to the online rates+taxes. Plus direct bookings often get priority for room assignments and upgrades.
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TillyCombatwarrior
•Does that actually work with chain hotels too or just smaller independent places? I thought the big chains pretty much stick to their standard rates and taxes no matter what.
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Dyllan Nantx
•It works with both, but you'll find more flexibility with independent hotels. Chain hotels typically have more standardized pricing, but they still have some wiggle room - especially for loyalty program members. With chain hotels, while they can't change the actual tax rate, they might offer you a lower base rate, complimentary breakfast, or waived resort fees which can offset the taxes. I've had success even with major brands like Marriott and Hilton by simply calling their direct reservation line rather than the general 800 number.
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Anna Xian
Just wanted to add that different types of hotels in the same city can have different tax rates too! This confused me on my last trip. The fancy hotel downtown had a 17.5% tax rate but the airport hotel from the same chain only charged 14%. Turns out some areas within cities have additional district taxes or tourism improvement fees. Something to keep in mind when comparing rates!
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Jungleboo Soletrain
•That's true, I noticed this in New Orleans! Hotels in the French Quarter had higher taxes than those just a few blocks away in the CBD. Worth checking if you don't mind staying slightly outside the main tourist area.
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KylieRose
I feel your pain on this! 17% does seem steep but unfortunately it's becoming more common in major cities. One thing that helped me was learning to budget for about 15-20% extra on top of the quoted room rate when traveling to big cities. A few tips that might help for future bookings: 1) Always check if the hotel has any package deals that include taxes - sometimes they're better value, 2) Consider staying just outside the main downtown/tourist district where taxes can be lower, and 3) If you're a frequent traveler, joining the hotel's loyalty program sometimes gets you better transparency on fees upfront. Also worth calling the hotel directly to ask for a breakdown of what makes up that 17%. Sometimes there are optional fees mixed in with mandatory taxes that you might be able to negotiate or decline. Good luck with your trip!
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Jayden Reed
This is such a frustrating surprise when booking! I had the same shock recently when I booked what I thought was a $180/night hotel and ended up paying over $220 with taxes. One thing I learned is that hotel booking sites are required to show you the full breakdown if you look for it - usually there's a small "taxes and fees" link you can click that will show you exactly what makes up that 17%. In my case, it was 8.5% state tax, 4% city occupancy tax, 3% tourism fee, and a $25/night "facility fee" that they were calling a tax but wasn't actually a government tax. For future reference, I've started using the "sort by total price" option on booking sites rather than just looking at the base room rate. It's eye-opening how much the rankings change when you factor in all the fees! Some hotels that looked expensive actually ended up being better deals once you included everything. Your 17% is definitely on the higher side but not unheard of for major tourist destinations. If you're comfortable sharing the general region (like "Southwest" or "East Coast"), people here might be able to confirm if that's typical for that area.
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Sofia Gutierrez
•This is really helpful advice! I never thought to use the "sort by total price" feature - I've always just looked at the base rates and then been shocked at checkout. That facility fee disguised as a tax is exactly the kind of thing that drives me crazy. It's so misleading when they bundle optional fees in with actual government taxes. I'm definitely going to start clicking those "taxes and fees" links from now on to see what I'm actually paying for before I book.
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TechNinja
I totally understand your frustration! I've been caught off guard by high hotel taxes too. What you're seeing is unfortunately pretty typical for major cities these days - that 17% is likely a combination of state sales tax, city occupancy tax, and possibly tourism/convention fees. The key thing to remember is that these taxes are set by local governments, not the hotels themselves. The money typically funds city services, tourism infrastructure, and convention centers that benefit the area you're visiting. One thing that might help for future trips: when you're comparing hotels, always look at the total price including taxes rather than just the base room rate. Some booking sites let you filter by "total price" which can completely change which hotels offer the best value. Also, if you're flexible with location, hotels just outside the main tourist/downtown districts often have significantly lower tax rates - sometimes 3-5% less. For this current booking, it might be worth calling the hotel directly to get a breakdown of that 17%. Sometimes booking sites lump in optional resort fees or facility charges with actual government taxes, and those might be negotiable or avoidable depending on what services you actually plan to use.
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Yuki Kobayashi
•This is really solid advice! I had no idea that hotels outside the main tourist areas could have such different tax rates. That 3-5% difference could really add up over multiple nights. I'm curious though - when you call the hotel directly to get that breakdown, do you find they're usually willing to explain what each component is? I've always been hesitant to call because I figured they'd just give me the runaround, but if they can actually separate out the government taxes from the optional fees, that seems worth the phone call.
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Laila Fury
I've dealt with this exact situation multiple times as a frequent business traveler, and that 17% is definitely on the higher end but not unusual for major metropolitan areas. Here's what I've learned about breaking down these charges: Most hotel taxes are actually a combination of several different fees: state sales tax (usually 4-8%), city/county occupancy tax (3-6%), tourism improvement district fees (1-3%), and sometimes convention center taxes (1-2%). These all get bundled together and can easily reach 15-20% in popular destinations. What's particularly frustrating is when hotels include non-tax fees in that percentage - things like "destination fees," "urban fees," or "facility fees" that aren't actually government taxes but get lumped in. I always ask for an itemized breakdown when the total seems excessive. A few practical tips: First, check if your credit card offers any hotel booking perks that might offset these fees. Second, some hotels offer "inclusive rates" that build the taxes into the quoted price rather than adding them on top. Third, if you're staying multiple nights, it's worth calling the hotel's direct reservation line (not the 1-800 number) and asking if they have any packages that might provide better overall value including the taxes. The good news is that once you know what to expect in a particular city, you can budget accordingly for future trips!
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Malik Thomas
•This is incredibly thorough and helpful! I had no idea there were so many different components that make up hotel taxes. The distinction between actual government taxes and those sneaky "facility fees" is something I never would have thought to ask about. Your point about calling the direct reservation line instead of the 1-800 number is particularly interesting - I assume the local hotel staff have more flexibility to work with you on rates and packages? I'm definitely going to start asking for itemized breakdowns from now on, especially when the total tax seems unusually high. Thanks for taking the time to share all these practical tips!
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Amina Bah
As someone who works in tax compliance, I can confirm that 17% is actually becoming quite standard in major tourist destinations. What many travelers don't realize is that these aren't just "hotel taxes" - they're often a combination of state sales tax, local occupancy taxes, tourism promotion fees, and sometimes special district assessments. The reason you're seeing such high rates is that cities have increasingly turned to hotel taxes as a way to fund infrastructure and services without raising taxes on local residents. It's essentially asking visitors to help pay for the amenities and services they use during their stay. A few things to keep in mind: First, these taxes are legitimate and required by law - the hotel doesn't keep this money, it goes to various government entities. Second, the rate can vary significantly even within the same city depending on the specific location and type of accommodation. Third, some of what appears to be "tax" might actually be resort fees or other charges that aren't true taxes. For your current situation, I'd recommend calling the hotel directly and asking for a complete breakdown of that 17%. They should be able to tell you exactly which portions are government taxes versus any optional fees. Sometimes booking sites don't clearly distinguish between the two, which can make it seem like you're paying more in actual taxes than you really are.
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Elin Robinson
•This is really enlightening from a tax compliance perspective! I never realized that cities were specifically targeting tourists to fund local infrastructure - that actually makes a lot of sense from a policy standpoint, even if it's frustrating as a traveler. Your point about the difference between actual government taxes and resort fees is particularly important. I've probably been complaining about "high taxes" when some of those charges weren't even taxes at all! Do you happen to know if there are any resources where travelers can look up the standard tax rates for different cities before booking? It would be helpful to know what to expect ahead of time rather than being surprised at checkout.
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Javier Gomez
I completely understand your shock - I had the same reaction when I first encountered these high hotel tax rates! As others have mentioned, 17% is unfortunately becoming quite common in major cities, but it's worth understanding what you're actually paying for. Most of these taxes are legitimate government fees that fund tourism infrastructure, convention centers, and city services that benefit visitors. However, I'd strongly recommend calling your hotel directly to get a complete breakdown of that 17%. Sometimes booking sites bundle optional resort fees or facility charges in with actual taxes, and those additional fees might be negotiable or avoidable. One thing I've learned is to always budget an extra 15-20% on top of quoted room rates when traveling to major tourist destinations. It's also worth checking if hotels just outside the main downtown/tourist district have lower tax rates - sometimes you can save 3-5% just by staying a few blocks away from the prime area. For future bookings, try using the "sort by total price including taxes" feature on booking sites rather than just looking at base rates. It completely changes which hotels offer the best value once you factor in all fees and taxes. Good luck with your trip!
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Miguel Silva
•This is such great advice about budgeting that extra 15-20% for hotel taxes! I wish I had known that before my recent trip planning. The tip about staying just outside the main tourist district is something I never considered, but saving 3-5% on taxes could really add up over a week-long stay. I'm curious - when you call the hotel directly to ask for that breakdown, do you usually get someone knowledgeable who can actually explain each component? I've always been worried about calling and getting transferred around or getting someone who doesn't really understand the tax structure themselves.
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QuantumLeap
I've been following this thread and wanted to add my perspective as someone who recently went through a similar situation. The 17% you're seeing is definitely frustrating, but it's become the new normal in many major cities unfortunately. What really helped me was learning to research the tax situation before booking rather than being surprised at checkout. Most city government websites actually publish their hotel occupancy tax rates if you know where to look - usually under their finance or revenue department pages. I started doing this after getting burned a few times by unexpectedly high taxes. Also, I've found that timing can sometimes matter. Some cities have temporary additional taxes during major events or peak tourist seasons. If your trip is flexible, it might be worth checking if those dates coincide with any special assessments. One last tip - if you're a AAA member or have certain credit cards, some hotels offer packages that include taxes in the quoted rate rather than adding them on top. It doesn't save money necessarily, but it eliminates the sticker shock and makes budgeting easier. Worth asking about when you call for that breakdown others have suggested!
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Josef Tearle
•This is really smart advice about researching tax rates ahead of time! I never thought to check city government websites for hotel occupancy tax information, but that would definitely help with trip budgeting. Your point about timing and special event taxes is particularly interesting - I had no idea that some cities add temporary surcharges during peak periods. That could explain why some people report wildly different tax rates for the same city depending on when they visited. Do you happen to remember which section of city websites typically has this information? I'd love to start doing this research before booking future trips to avoid any more unpleasant surprises at checkout.
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Mohammad Khaled
•This is really helpful advice about researching ahead of time! I wish I had known to check city websites before my booking. Your point about timing and special events is something I never considered - that could definitely explain why tax rates seem to vary so much for the same destination. Do you have any tips on which specific section of city websites usually has the hotel tax information? I'd love to start doing this research myself but I'm not sure where to look - is it usually under "Business" sections or more in the general tax/revenue areas?
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NebulaNinja
•Great question about where to find this info on city websites! I usually start by looking under "Finance" or "Revenue" departments, then checking for subsections like "Tax Information" or "Business Taxes." Sometimes it's under "Visitors" or "Tourism" sections too. For example, if you search "[City Name] hotel occupancy tax rate" you'll often get direct links to the relevant pages. Some cities also have "Doing Business" portals that list all the various tax rates including hotel/lodging taxes. Chicago, NYC, and San Francisco have pretty comprehensive breakdowns on their official sites. It takes a few minutes of clicking around, but once you find it for a city, you can bookmark it for future reference!
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Nathaniel Stewart
This whole thread has been incredibly educational! I had no idea hotel taxes were so complex with all these different components. Reading everyone's experiences, I realize I've been making the same mistake of just looking at base room rates and then getting shocked at checkout. A couple of questions for the group: 1. For those who've successfully negotiated resort fees or facility charges - how do you approach that conversation with the hotel? Do you call before arrival or handle it at check-in? 2. Has anyone tried booking directly through hotel websites vs third-party sites to see if there's actually a difference in how taxes and fees are presented or calculated? I'm planning a trip to the Pacific Northwest next month and want to be better prepared this time. Based on what I've learned here, I'm going to research the local tax rates ahead of time and budget that extra 15-20% everyone mentioned. Thanks to everyone who shared their experiences and tips - this has been way more helpful than trying to figure this out on my own!
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Adaline Wong
•Great questions! For negotiating resort fees, I've had the most success calling 2-3 days before arrival rather than at check-in. The reservations team usually has more flexibility than front desk staff who are often just following policy. I explain specifically which amenities I won't use and ask if there's a "rooms only" rate available. Success varies, but I'd say it works about 30% of the time. Regarding booking direct vs third-party sites - there's definitely a difference in presentation. Hotel websites usually break down taxes more clearly and sometimes offer "inclusive" rates that build everything into one price. Third-party sites often just show that confusing "taxes and fees" lump sum. The actual tax amount is the same either way since those are government-set rates, but direct booking often gives you more transparency and sometimes better customer service if issues arise. For the Pacific Northwest, expect around 15-17% in major cities like Seattle or Portland. Washington state has no income tax so they rely more heavily on sales and lodging taxes. Good luck with your trip planning!
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