A four per cent Municipal Accommodation Tax (MAT) across Toronto is now applicable to:
- hotels (including full service, limited service, small hotels)
- clubs (private or fraternal)
- condo hotels
- the portion of a multi-use complex that is used to provide transient accommodation
The MAT is applied to all rooms used for rental accommodation for four hours or more and continuous stays of 30 days or less.
The Greater Toronto Hotel Association (GTHA) will collect this tax on the City’s behalf. All operators of properties applicable to the MAT must register with the GTHA. The MAT fees collected must be remitted to the GTHA within 15 days after month’s end. Late remittances will be charged an interest rate of 1.25 per cent per month, in accordance with City of Toronto interest rate for late charges.
HST is applicable to the funds received from the MAT if the business is an HST registrant.
Accommodation providers are required to retain all records and documents necessary to enable an accurate determination of the MAT for a period of three years. Learn more about audits, dispute resolution and refunds.
All guest invoices must include a separate line for the four per cent Municipal Accommodation Tax, which applies to the room cost portion only. Other guest services, such as meeting room rentals, food and beverage, room services, internet and phone charges, are excluded from the tax provided they are itemized separately on the invoice.