Maui visitors could soon face a staggering 52 percent in total taxes and fees on rental cars under a new proposal in the Hawaii State Legislature. The plan would add an additional $3 daily surcharge on top of existing fees, potentially making Maui one of the most expensive places in the U.S. to rent a car.
The proposed fee hike is designed to finance revenue bonds covering the construction, operation, and maintenance of the Lahaina Bypass North. The bypass, which would extend from its current terminus at Keawe Street in Lahaina to its planned northern end at Honokōwai, is considered a critical project to alleviate congestion and provide alternative routes in an area that has faced increased traffic demands due to tourism and new residential development.
According to the bill, the project will also benefit emergency response efforts, particularly following the Maui wildfires that exposed vulnerabilities in the region’s transportation infrastructure. The bypass is expected to serve visitors and residents by providing improved access and supporting the Maui economy.
In addition to the base rental rate charged by car rental companies, visitors renting a car on Maui face these mandatory fees and taxes. Estimated amounts below are based on a $50 per day base rental fee.
These combined charges bring the total estimated daily cost in fees and taxes on a $50 rental to $26.18, excluding optional add-ons such as insurance, additional driver fees, and fuel surcharges. Over a week-long rental, these extra costs add significantly to a visitor’s bill, making car rentals another one of the most significant expenses of a Maui vacation.
For Hawaii travelers, the proposed increase in rental car fees is just one of several simultaneously rising costs associated with visiting the islands. From sky-high accommodations and a range of hotel and vacation rental fees to airfare and rising parking costs, travelers are already feeling the pinch. If approved, this fee hike could add to significant expenses, particularly for stays on Maui where rental cars are typically considered a necessity.
While the amount of this proposed increase may seem minimal to some, it represents a growing concern about the cumulative cost of visiting.
With the proposed $3 increase, total fees and taxes on a $50 rental in Maui would represent over 52 percent of the base cost. This places Hawaii among the most expensive locations for rental cars in the U.S. in terms of taxes and fees. Hawaii’s high fees, driven by surcharges, airport concession fees, and state and now county taxes, continue to outpace many mainland destinations, raising concerns about Hawaii’s affordability for visitors.
The bill has been introduced but has yet to be referred to committees. Similar proposals have faced pushback, with outspoken rental car companies arguing that additional fees could damage their business by driving potential visitors away or encouraging them to seek alternatives, including Uber, Lyft, and public transportation, including the bus. The Maui bus, however, doesn’t accommodate typical visitor luggage.
Proponents say the fee is a fair way to fund critical infrastructure without further burdening local taxpayers. They highlight that rental car users, the majority of whom are visitors, significantly contribute to Maui’s road congestion and should play a greater role in funding necessary improvements.
Many visitors have expressed frustration in comments with rising costs in Hawaii, and this proposal is likely to generate further debate. Some say that investing in infrastructure this way is necessary to support growing tourism. In contrast, others believe the state should find alternative funding methods that do not disproportionately impact visitors renting cars.
If Senate Bill 1659 moves forward, it will face committee hearings, potential amendments, and votes in both the Senate and House before potentially being enacted. Lawmakers will likely weigh public opinion through comments and the economic impact on Maui’s tourism sector before making a final decision.
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Killing tourism benefits Maui and it’s residence how?? Losing the tourist dollars won’t build homes or roads or schools or whatever the County and state can’t afford. I think tourists paid for airport parade and airport improvements. Good bye Maui….Mark
Might as well go to Fiji or the Cook islands. As Hawaii and specifically Maui, are pricing themselves out of the tourism industry. Been going to the islands for 40 years. Going to look at alternatives for my yearly 10-12 day trip this year. I’m in San Diego and our housing market sucks also. I get it. The state needs to streamline and assist in building lower cost housing that is decent and liveable for those displaced first of all from both fires that fateful day. And secondly, for those that are locals and live there year round. I understand and agree with all of it; except pricing out your #1 revenue source and income for those that live there today. Good luck.
Keep it up Hawaii. Holly, will be staying home. Then what?
I’ve been going to Hawaii every year for more than 30 years but I’m done with Hawaii! The taxes on both car rental and hotel are ridiculous. Half the price of each seems to be taxes. Stayed at Hilton Hawaiian Village twice last year. Our corner ocean front room in Rainbow Tower was as old and worn out as any old city hotel. The carpet and the walls in the hallway were already dirty the year before when I was there so I don’t know why I went there another time. Another time last year we stayed in Alli Tower and the room was grungy, drab and old! The staff went on strike while we were there and for how short staffed they were we weren’t surprised. They don’t put decent lighting in any of the rooms no doubt because they don’t want anyone to see the rooms awful condition. I appreciate how friendly so many of the people are, but there are too many scrooges. The hotel prices are ridiculous! I miss the old Hawaii after hurricane Iniki.
Been to Maui 4 times. Well worth the expense, but withe proposed taxes and surcharges we could not afford to come. You are killing people wanting to come.
,
I wonder 3 dollars a day per rental customer. If a car gets returned in the morning at which the customer is charged for the full return day and the car is rented again in the afternoon hours it totals 6 dollars and such to the rental profits. How many return and pickup occurances happen in a given 24 hour period. Multiply that times 3 dollars per day. Maybe time to rent a bicycle with a luggage rack. Uber,Lyft or a residental car rental program.
It has always been plz come and spend lots of money, now its don’t come and me and my family hear you, by by
My wife and I will probably bid Hawaii and sad “Aloha” after our next trip to the islands we have visited and loved for 40 years. We even were lucky enough to spend 3 years as kamaiana on Oahu. Unfortunately, our trip to Maui this fall will be our last to that beautiful island. Our hearts were broken by the tragedy in Lahaina, and we hoped to see it reach its glory again in the future. We still pray for those impacted by the fires. The steadily increasing fees and taxes that greedy politicians and bureaucrats aren’t able to live without are reaching a breaking point.
Our normal annual visit is 4 – 5 weeks between Kauai, Maui and occasionally Oahu or one of the other islands. I think now we will spend our island time in the Caribbean. We spent 2 weeks in the Caribbean last spring, and it was much less expensive than a week on Maui. We can even cruise for a more reasonable cost.
Good luck Hawaii.
I’m not rich. Probably never will be. We have to save a long time to visit this beautiful place. The ever increasing costs are pushing us out of Hawaii travel. It breaks our hearts. I hope Hawaii can figure things out. Win-win is always best.
I’m done with Hawaii, there is a tax on the tax for everything.
We have been vacationing in Maui since 1980, and have purchased timeshares. We usually visit twice a year and support local restaurants and businesses, donate to charities and support the victims of the Lāhainā fires. However, the large increases in airline and rental car costs have modified our travel plans. Our friends and families feel the same squeeze. An anti-tourist mentality is taking place.
Very frustrated with all the increases in fees and taxes. We have had a time share since 2000. Didn’t have any of the extra fees and taxes when we bought. We are retired now and living on a fixed income. Have been coming over every year but with all of the increases getting harder to do. We love Maui but I don’t think Maui loves the visitors at all anymore. Just keep in mind the visitors support your economy.
Does this include kamaʻāina from neighbor islands?
Absolutely crazy! Maui and Hawaii in general have priced me out of the market. I will go many other places that don’t charge visitor extremely high visitor fees at every turn. Don’t feel welcome in Hawaii anymore.
Tourists should pay for the Lahaina Bypass road??? It is as though Locals don’t use it. They are just uprooting tourism that much more. Really stupid idea!
Our goal is quality not quantity,
Maui , is a special place, Maui not for everyone, accept everyone would live to come Maui. Less is more.Popular tourist destinations around rhe world are doing the same.too many tourists.
Canadians are starting to boycott travel to the U.S. Many of us are vacationing in Mexico or the Caribbean. This will impact the economy and the increasing costs of visiting Hawaii are going to discourage Americans visiting the Island also. All of us do not like being nickle and dimed to death. Just isn’t a good look. Maybe a flat environment tax as you land by sea or air is better because perception does count.🇨🇦
Yes, Mexico is better for Canadians, your currency is equivalent to the pesos. Maui is not for everyone. Our hotels are packed, restaurants are standing room only.good luck
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