City Council approved an increase to the Municipal Accommodation Tax (MAT) from four per cent to six per cent effective May 1, 2023.


The Province of Ontario enacted the Transient Accommodation Regulation 436/17, which came into effect December 1, 2017, and provides the necessary provisions for municipalities across Ontario to implement a Municipal Accommodation Tax (MAT). City Council approved a mandatory MAT on January 31, 2018.

Hotels and individuals offering short-term rentals must pay a six per cent (6%) Municipal Accommodation Tax (MAT).

MAT is payable on the purchase price of the room portion of rental accommodations for stays of four hours or more. Other 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.

HST is also payable on the MAT portion.

The Municipal Accommodation Tax does not apply to the following accommodations.

  • Treatment centres that receive provincial aid under the Ministry of Community and Social Services Act.
  • Summer camps where overnight accommodation is part of the programming.
  • Houses of refuge or lodging for the reformation of offenders.
  • Charitable, non-profit philanthropic corporations organized as shelters for the relief of the poor or for emergency.
  • Hotel or motel rooms used by the City or its agents for shelter accommodation purposes.
  • Condo guest suites/rooms.
  • Tents or trailer sites supplied by a campground, tourist camp or trailer park.
  • Accommodations supplied by employers to their employees in premises operated by the employer
  • Any accommodation purchased by a person or entity listed in s. 268 of the City of Toronto Act, 2006.

Interest and penalties apply on any overdue MAT payment at a monthly rate of 1.25 per cent from the first day after the tax payment is due. After that time, interest will apply each month on the principal amount owing during the default period at an annual rate of 15 per cent (15%).

A non-sufficient funds (NSF) charge will be applied to all MAT payment not honoured by a financial institution due to insufficient funds.