Sunday November 22, 2009 6:28 PM ET
SmartMoney
Published August 25, 2008  |  A A A
Deal of the Day by Kelli B. Grant (Author Archive)

5 Most Tax-Friendly U.S. Cities for Travelers

IMAGINE WHAT YOU could do with an extra $20 a day in Honolulu. You could buy a few pounds of freshly-ground Kona coffee or take a snorkeling trip out in the crystal-blue waters. The good news: That's roughly the amount travelers will save each day on hotel fees and other taxes when they opt to go to Honolulu over less visitor-friendly cities.

Honolulu is a rare exception, however. A growing number of city governments are sticking visitors with the bill for building and maintaining local attractions. That tab comes in the form of extra fees and taxes on hotel rooms, car rentals and even restaurant tabs. "They can add a huge, huge percentage to your bill," says Jennifer Gaines, a contributing editor for travel booking site Travelocity. Chicago, for example, tacks on $42.44 a day for such expenses. (To see which five cities are the worst offenders, view our slideshow).

While few big cities are cheap to visit, some are less apt to tax tourists than others, says Bill Connors, executive director of the National Business Travel Association. "What that tells us is the strategy in those states is to attract visitors by keeping taxes low," he says.

To help figure out which cities charge visitors the least, the National Business Traveler Association recently crunched the numbers on taxes and fees charged in 50 U.S. cities. They based these figures on average daily charges of $103.70 per night for hotel, $82.03 for meals per day and $76.60 per day for car rental, before taxes and fees.

For the five best deals, and a breakdown of what each city charges visitors, view our slideshow.
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User Comments
Posted by: othoschild
NO sales tax in Oregon..on anything!!!!!
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