NBTA Study Reveals Best, Worst Travel Taxes in Top 50 U.S. Destinations
The study shows that taxes targeting travel services increase cost by 56 percent. Rental industry says high discriminatory travel taxes deter meetings and harm local economy.
Discriminatory travel taxes and fees enacted on travel-related services - often to fund unrelated local projects - impose an average increased cost on visitors of 56 percent over general sales tax, according to an annual study by the National Business Travel Association Foundation and Concur.
The study, which is conducted by the NBTA Foundation, the education and research foundation of the NBTA, and Concur, a provider of on-demand employee spend management services, analyzes the car rental, hotel and meal taxes in the top 50 U.S. travel destination cities.
"The business and travel communities are increasingly concerned about the negative impact that taxes targeting travelers have on the greater travel industry and local economies. It is unacceptable that visitors, whose general tax dollars can help to keep a community afloat in difficult economic times, are forced to pay so much more taxes and fees to fund projects unrelated to the services they purchase," said NBTA Executive Director and COO Michael W. McCormick. "On average, the fees targeting travel services increase the tax burden by more than half, and in the worst cases, by up to 144 percent. Rest assured, companies are taking notice of these unfair burdens when determining how and where to spend their business travel, meetings and events dollars."
"For corporate travel managers and their companies, the rising cost of business travel, meetings and events continues to be an area of focus and concern," said Rajeev Singh, president and COO of Concur.
In the study, 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.
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. Portland, OR
4. Detroit, MI
5. Honolulu, HI
The cities that impose the highest total taxes on travelers are:
1. Chicago, IL
2. New York, NY
3. Boston, MA
4. Seattle, WA
5. Minneapolis, MN
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 taxrates in central city locations are:
1. Orange County, CA
2. San Jose, CA
3. Burbank, CA
4. San Diego, 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. Indianapolis, IN
5. New York, NY
"What many cities don't realize is that these taxes are not only burdening business travelers, but local businesses pay the price, as well. In fact, most companies spend the majority of their car rental and hotel budgets in the communities in which they have offices. Ultimately, cities are hurting their economies two-fold, with hidden costs to local businesses and taxes out-of-town visitors will try to avoid," NBTA's McCormick said.
More Rental Operations

In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →
Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
The Desk Upsell Is Costing Operators More Than it Earns
Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.
Read More →
U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius
The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.
Read More →
Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030
A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.
Read More →
Rental Car Fleet Sales Show Mid-Year Strength
June gains ensured rental fleets closed out the first half of 2026 in positive territory.
Read More →
Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport
The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.
Read More →
