Hotel Tax

Hotel tax, often called lodging tax or occupancy tax, is a fee added to the cost of staying in a hotel or similar accommodation. This tax is usually a percentage of the room rate and varies by location. It is collected by the hotel at the time of payment and then remitted to local, state, or federal governments. The revenue generated from hotel tax typically supports public services, tourism promotion, and infrastructure improvements. Travelers should be aware of this additional cost when budgeting for their stay, as it can significantly affect the total price.