Luxury Destinations with the Highest and Lowest Tax and Service Fees

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%
Rosewood Baha Mar, Bahamas


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
One&Only Mandarina


3. Turks & Caicos: 27%

  • Sales Tax: 12%
  • “Facility Fee” most hotels charge: 5%
  • Service: 10%
Amanyara, Turks & Caicos


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%


6. Costa Rica: 25%

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


9. Jackson Hole: 23%

  • Accommodation Tax: 13%
  • Occupancy/Service Fee: 10%
Four Seasons Jackson Hole


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)
Best London Luxury Hotel Offers, 2023


12. Denmark: 20%

  • VAT: 20% already included in the quoted rate
Copenhagen, Denmark


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%+
    Koh Samui, Thailand


    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%
    Four Seasons Bora Bora


    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)

    What's your experience with hotel taxes, service charges, and resort fees?

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