Hotels and individuals offering short-term rentals must pay a four per cent (4%) Municipal Accommodation Tax (MAT).

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Hotel

Effective April 1, 2018, the City of Toronto implemented a four per cent (4%) 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 accommodation

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.

Individuals booking short-term rentals need to pay a four per cent (4%) Municipal Accommodation Tax (MAT).

Hotel

All hotel guest invoices will include a separate line for “Municipal Accommodation Tax” as of April 1, 2018. The four per cent (4%) 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 (STR)

Registered STR operators are required to collect and remit a four per cent (4%) MAT on all rentals. MAT reporting and payment is due on a quarterly basis, within 30 days of the end of the quarter.

STR operators are responsible to ensure that the correct amount of MAT is collected and remitted to the City. The City may revoke a short-term rental registration or deny registration renewal if a STR operator fails to report and remit the MAT.

Payments can be made through a financial institution via online banking, telephone banking, at an automatic teller or in-person, using the STR-registration number.

Learn more about filing the MAT report, making payments, HST, interest and due dates.