GBTA Reveals Best and Worst Travel Taxes in Top U.S. Destinations
Research finds that taxes targeting travel services increase cost by 56 percent.
Alexandria, VA - The GBTA Foundation, the education and research foundation of the Global Business Travel Association (GBTA), today released the 2011 findings from its annual study of car rental, hotel and meal taxes in the top 50 U.S. travel destination cities. The study reveals that the discriminatory travel taxes and fees enacted on travel-related services impose an average increased cost on visitors of 56 percent over general sales tax. These taxes are often used to fund local projects unrelated to tourism and business travel.
"The difference in the effective tax rate on travelers from one city to the next is quite remarkable. For instance, a traveler who visits Chicago pays 80 percent more in taxes during their one-night stay than a traveler visiting Ft. Lauderdale," said Joe Bates, GBTA Foundation director of Research. "If you are a travel manager planning a meeting, this is important information to take into consideration. And if you are a retail business attempting to lure travelers, this tax rate differential is a competitive advantage or disadvantage."
The study provides several different views of travel taxes to help readers make informed choices. The top 50 markets are ranked by overall travel tax burden, including general sales tax and discriminatory travel taxes, and by discriminatory travel tax burden, excluding general sales taxes to count only taxes that target car rentals, hotel stays and meals. Separate data are offered for central city and airport locations, as the tax regimes are often distinct.
"Each year the GBTA Foundation undertakes this important study to help travel managers make the best decisions for their companies. The rising cost of business travel and especially meetings and events is an area of deep concern when developing travel plans," Bates continued.
The research shows the U.S. cities where travelers incur the lowest total tax burden in central city locations, factoring in general sales taxes and discriminatory travel taxes, are:
1. Fort Lauderdale, FL
2. Fort Myers, FL
3. West Palm Beach, FL
4. Detroit, MI
5. Portland, OR
The cities that impose the highest total taxes on travelers are:
1. Chicago, IL
2. New York, NY
3. Seattle, WA
4. Boston, MA
5. Kansas City, MO
Discriminatory travel taxes are those imposed specifically on travel services above and beyond general sales taxes. The U.S. cities with the lowest discriminatory travel tax rates in central city locations are:
1. Orange County, CA
2. San Diego, CA
3. San Jose, CA
4. Burbank, CA
5. Ontario, CA
The cities that impose the highest discriminatory travel taxes on travelers are:
1. Portland, OR
2. Boston, MA
3. Minneapolis, MN
4. New York, NY
5. Chicago, IL
The full report is available exclusively to GBTA members and offers detailed insight for travel managers interested in understanding the impact that these taxes have on their business travel spend. Non-members can purchase this study through the GBTA Foundation website: http://www.gbta.org/Lists/Resource%20Library/Forms/Foundation_Research_and_Surveys.aspx
More Rental Operations

U.S. Business Travel Drives $623 Billion+ in Economic Impact as Spending Reaches $538 Billion
The data also underscores the industry’s strong multiplier effect across the U.S. economy, revealing that each dollar invested in business travel in 2024 generated $1.16 in GDP.
Read More →
Rental Fleet Sales Skating Just Above 2025 Levels
The U.S. economy's continued growth and positive business investment are creating a favorable environment for fleet vehicle demand.
Read More →Grow Your Rental Business Beyond Cars
Rental fleet operations are facing numerous evolving challenges and opportunities from AI technology to rate and revenue management, to customer service and business growth.
Read More →
Using AI to Create Clarity, Not Conflict, in Rental Car Damage
Rental companies still need people, policy, judgment, and thoughtful implementation, with operators remaining in control of the customer experience.
Read More →
Get Ready To Roll: No Stopping Self-Driving Rental Cars
The autonomous mobility technology revolution will move at its own pace, but sooner rather than later.
Read More →
Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform
The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.
Read More →
Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry
A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.
Read More →
Government Affairs Executive Wins Leading Rental Car Industry Award
Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.
Read More →
Green Motion Expands Its African Presence with Mozambique Launch
This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.
Read More →
RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech
Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.
Read More →
