Luxury Destinations with the Highest and Lowest Tax and Service Fees

Have you been unpleasantly surprised by luxury hotel taxes, service charges, or resort fees? Unless price is truly no object, it's a good idea to have a sense of the taxes and fees that will be added on to your room charges, as these can vary enormously by destination. In some cases you may be paying over one third of the room rate as additional taxes and fees, while in other locales it could be 5% or less. Here's our guide:

1. Rosewood Baha Mar: 37.5%

VAT: 10%
Nassau/Paradise Island Promotion Board: 5.5%
Cable Beach Resort Association Levy: 5.5%
Resort fee: 16.5%

2. Nayarit, Mexico: 31-36%

For most luxury resorts in Nayarit, which includes Punta Mita, expect to pay 31-36% in combined taxes and service charges on top of your room rate. That's because Mexico has a high VAT that applies to most goods and services, including hotel stays, plus the state of Nayarit adds 5% in taxes, and most luxury hotels add on a service charge that is a percentage of the room rate, rather than a resort fee or other fixed fee per night.

Mexico VAT: 16%
Nayarit State: 5%
Service Charge: Typically 10-15%, depending on the luxury resort

3. Turks & Caicos: 27%

Sales Tax: 12%
“Facility Fee” most hotels charge: 5%
Service: 10%

4. Anguilla: 23-27%

Anguilla's accommodation tax is 13%, but expect to also pay 10-12% mandatory service charge at luxury resorts such as Four Seasons Anguilla and Belmond Cap Juluca. The Four Seasons also charges an environmental fee of 2.26%.

Accommodation Tax: 13%
Service: 10-12%

5. Maldives: 26%

TGST: 16% (See The Maldives TGST Tax Increased January 1, 2023)
Most luxury resorts charge 10% for service
Sometimes there's also a green/environmental fee

6. Costa Rica: 25%

Sales tax: 13%
Resort Fee: 12% at luxury resorts such as Four Seasons Costa Rica and Andaz Costa Rica

7. Japan: 23-27%

Expect to pay 23-25% or more in taxes and service charges when staying in Japan, due to the 10% consumption tax and 13-15% service charge levied by most luxury hotels.

VAT: 10%
Service Charge: 13-15%
Sometimes there's also a local accommodation tax. This is usually nominal, except in Hokkaido, where it's 2% of the room rate.

8. Grand Cayman: 23%+

Tourist Accommodation Tax: 13%
Service: 10%
A resort fee may also be charged

9. Jackson Hole: 23%

Accommodation Tax: 13%
Occupancy/Service Fee: 10%

10. Buenos Aires: 21%

VAT: 21%

11. London, UK: 20% VAT and 5% Discretionary Service Charge at Many London Hotels

VAT: 20%
Service: 5%, discretionary at many luxury hotels (but must ask for it to be removed)

12. Denmark: 20%

VAT: 20% already included in the quoted rate

13. Hawaii: 18%+

Accommodation Tax: 10.25%
General Excise Tax: 4.712%
County Tax: 3%
Some resorts also add a resort fee

14. Singapore: 18%

Government tax: 8%
Service: 10%

15. Thailand: 17%+

Government tax: 7%
Service: 10%+

16. Bora Bora: 14.9-24.9%

Room tax: 5%
Regional tax: 4.9%
Service charge: 5%
Some resorts also charge a resort fee of up to 10%

Luxury Destinations with Lower Taxes and Fees

For luxury destinations with lower tax regimes, consider:

Switzerland: 3.7% VAT already included in quoted rates although there can be nominal city tax per night
St. Barts: 5% hotel tax
Marrakech, Morocco: MAD 30 city tax and MAD 11 promotional tax (total of ~EUR 5) per person per night
Portugal: 6% VAT already included in quoted rates although there can be nominal city tax per night
Australia: 10% VAT already included in quoted rates
France: 10% VAT is already included in quoted rates although there can be nominal city tax per night
Spain: 10% VAT
Seoul, Korea: 10% VAT
Italy: 10% VAT + nominal city tax
Prague, Czech Republic: 10% VAT + nominal city tax
Bermuda: 11.75% hotel occupancy/tourism authority tax, but resorts may also charge a resort fee (nightly or percentage of room rate)
Athens, Greece: 13% VAT + 0.5% city tax
Miami, Florida: 13% room tax/state tax
Ireland: 13.5% VAT already included in quoted rates
Vail, Colorado: 10.8% state/city/local tax, but many resorts also charge resort fees (nightly or percentage of room rate)