Hotels and people doing short-term rentals need to pay a four per cent Municipal Accommodation Tax (MAT). More information will become available in December 2019, regarding short-term rental regulations.

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Hotel

Effective April 1, 2018, the City of Toronto implemented a four per cent Municipal Accommodation Tax (MAT) on hotels in Toronto.

The MAT applies to all rooms used for rental accommodation for four hours or more and continuous stays of 30 days or less for:

  • hotels (including full service, limited service, small hotels)
  • motels
  • hostels
  • clubs
  • condo hotels
  • the portion of a multi-use complex that is used to provide transient accomodation

The tax only applies to the room cost portion of rental accommodation. Other hotel services, including meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the bill.

Short-Term Rental

A short-term rental is defined as all or part of a dwelling unit used to provide sleeping accommodation for any rental period that is less than 28 consecutive days in exchange for payment, including existing bed and breakfasts.

People doing short-term rentals need to pay a four per cent Municipal Accommodation Tax (MAT). More information will become available in December 2019, regarding short-term rental regulations.

Hotel

All hotel guest invoices will include a separate line for “Municipal Accommodation Tax” as of April 1, 2018. The four per cent tax applies only on the room cost portion of overnight accommodation and excludes costs from other hotel services, including meeting room rentals, food and beverage, room services, internet and phone charges, provided they are itemized separately on the bill.

Short-Term Rental

The payment process for the MAT on short-term rentals is currently being finalized. More information will become available in December 2019, regarding short-term rental regulations.