HAWAII - As the calendar turns to January 1, 2026, Hawaii is implementing several significant laws that prioritize long-term sustainability, workers' pay, and modern access to healthcare. From the first "climate tax" of its kind in the U.S. to a total ban on outdated lighting, the 2026 shifts will impact residents, businesses, and tourists alike.
1. The $16 Minimum Wage Milestone
Hawaii is continuing its aggressive multi-year plan to achieve one of the nation's highest minimum wages.
The Increase: On January 1, the statewide minimum wage increases by $2.00, moving from $14.00 to $16.00 per hour.
The Path to $18: This is the third step in a scheduled series of hikes that will culminate in a $ 18.00-per-hour minimum on January 1, 2028.
Tip Credit Update: For employers who utilize the "tip credit," the base wage for tipped workers remains tied to the minimum wage, currently $14.75 per hour (reflecting a $1.25 credit).
2. The "Green Fee" Climate Tax (Act 96)
In a historic first for any U.S. state, Hawaii is launching a dedicated "Climate Impact Fee" to fund environmental protection and disaster resilience following the Maui wildfires.
Transient Accommodations Tax (TAT): The State TAT—already applied to hotels and vacation rentals—increases by 0.75%, bringing the total state rate to 11%.
The Cruise Ship Levy: For the first time, cruise ship passengers will also be subject to this 11% tax on their gross fares, prorated for the number of days the vessel is in Hawaii ports.
The Goal: Expected to generate $100 million annually, these funds are earmarked for beach restoration, wildfire mitigation, and invasive species control.
3. The Fluorescent Light Bulb Ban
Hawaii is moving one step closer to its 100% clean energy goal by 2045 with the full implementation of the Hawaii Clean Lighting Standards Act.
The Ban: Starting January 1, it is illegal for businesses in the islands to purchase or sell the standard fluorescent light bulbs often found in offices and retail spaces.
The Switch: Businesses are encouraged to switch to LEDs, which are more energy-efficient and mercury-free. To help with costs, state energy rebates are available to companies making the transition.
4. Mandatory Insurance for Diabetes Tech (HB 820)
A vital win for the health of Hawaii's residents, particularly those in rural areas with limited access to specialists.
The Requirement: All health insurers in Hawaii, including Medicaid managed care programs, must now cover Continuous Glucose Monitors (CGMs) and related supplies for individuals diagnosed with diabetes.
The Impact: These small electronic sensors provide real-time blood sugar data, helping patients avoid dangerous fluctuations. The law ensures coverage for the devices, repairs, and replacement parts, treating them as essential medical services.
5. The "SAFE for Kids" Digital Protections
Reflecting a national trend toward minor safety online, Hawaii is beginning enforcement of new regulations targeting social media platforms.
Algorithmic Limits: Platforms are restricted from using "addictive" algorithmic feeds for users under 18 without parental consent.
Default Privacy: New accounts for minors must default to the highest privacy settings, and platforms are prohibited from selling the personal data of users under 16 without explicit permission.
Hawaii's 2026 changes reflect a balance between economic growth and environmental preservation. While the new "Green Fee" adds a small cost to travel, the revenue is intended to protect the natural beauty that defines the islands. Residents should check their January paychecks to ensure their hourly rates have been adjusted to the new $16 floor.
5 Major Laws Hitting the State of Hawaii on January 1st
HAWAII - As the calendar turns to January 1, 2026, Hawaii is implementing several significant laws that prioritize long-term sustainability, workers' pay, and modern access to healthcare. From the first "climate tax" of its kind in the U.S. to a total ban on outdated lighting, the 2026 shifts will impact residents, businesses, and tourists alike.
1. The $16 Minimum Wage Milestone
Hawaii is continuing its aggressive multi-year plan to achieve one of the nation's highest minimum wages.
The Increase: On January 1, the statewide minimum wage increases by $2.00, moving from $14.00 to $16.00 per hour.
The Path to $18: This is the third step in a scheduled series of hikes that will culminate in a $ 18.00-per-hour minimum on January 1, 2028.
Tip Credit Update: For employers who utilize the "tip credit," the base wage for tipped workers remains tied to the minimum wage, currently $14.75 per hour (reflecting a $1.25 credit).
2. The "Green Fee" Climate Tax (Act 96)
In a historic first for any U.S. state, Hawaii is launching a dedicated "Climate Impact Fee" to fund environmental protection and disaster resilience following the Maui wildfires.
Transient Accommodations Tax (TAT): The State TAT—already applied to hotels and vacation rentals—increases by 0.75%, bringing the total state rate to 11%.
The Cruise Ship Levy: For the first time, cruise ship passengers will also be subject to this 11% tax on their gross fares, prorated for the number of days the vessel is in Hawaii ports.
The Goal: Expected to generate $100 million annually, these funds are earmarked for beach restoration, wildfire mitigation, and invasive species control.
3. The Fluorescent Light Bulb Ban
Hawaii is moving one step closer to its 100% clean energy goal by 2045 with the full implementation of the Hawaii Clean Lighting Standards Act.
The Ban: Starting January 1, it is illegal for businesses in the islands to purchase or sell the standard fluorescent light bulbs often found in offices and retail spaces.
The Switch: Businesses are encouraged to switch to LEDs, which are more energy-efficient and mercury-free. To help with costs, state energy rebates are available to companies making the transition.
4. Mandatory Insurance for Diabetes Tech (HB 820)
A vital win for the health of Hawaii's residents, particularly those in rural areas with limited access to specialists.
The Requirement: All health insurers in Hawaii, including Medicaid managed care programs, must now cover Continuous Glucose Monitors (CGMs) and related supplies for individuals diagnosed with diabetes.
The Impact: These small electronic sensors provide real-time blood sugar data, helping patients avoid dangerous fluctuations. The law ensures coverage for the devices, repairs, and replacement parts, treating them as essential medical services.
5. The "SAFE for Kids" Digital Protections
Reflecting a national trend toward minor safety online, Hawaii is beginning enforcement of new regulations targeting social media platforms.
Algorithmic Limits: Platforms are restricted from using "addictive" algorithmic feeds for users under 18 without parental consent.
Default Privacy: New accounts for minors must default to the highest privacy settings, and platforms are prohibited from selling the personal data of users under 16 without explicit permission.
Hawaii's 2026 changes reflect a balance between economic growth and environmental preservation. While the new "Green Fee" adds a small cost to travel, the revenue is intended to protect the natural beauty that defines the islands. Residents should check their January paychecks to ensure their hourly rates have been adjusted to the new $16 floor.
HAWAII - As the calendar turns to January 1, 2026, Hawaii is implementing several significant laws that prioritize long-term sustainability, workers' pay, and modern access to healthcare. From the first "climate tax" of its kind in the U.S. to a total ban on outdated lighting, the 2026 shifts will impact residents, businesses, and tourists alike.