The short-term rental by-law is under appeal at the Ontario Municipal Board and the tax will only come into effect once a decision has been made. See more details below.


The City of Toronto is implementing a four per cent Municipal Accommodation Tax (MAT) on short-term rentals in Toronto which applies to:

  • Individual short-term rental operators (hosts)
  • Short-term rental companies which have entered into a collection agreement with the City

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, which includes existing bed and breakfasts.

An individual operating a short-term rental is required by bylaw to pay the four per cent MAT.

If a rental property was booked and paid for prior to the MAT implementation date, the tax will not be applicable. If it was booked before the implementation date but paid for on or after that date, the tax is applicable.

Note: Short-term rentals are not permitted in Toronto until the zoning bylaw and registration and licensing bylaws come into effect. The zoning bylaw amendments have been appealed to the Ontario Municipal Board. The Ontario Municipal Board has yet to rule on these appeals. The new MAT on short-term rentals comes into effect when the short-term rental registration and licensing bylaw comes into effect. The registration and licensing bylaw is expected to come into effect once appeals are complete at the Ontario Municipal Board and on the day the zoning changes come into force. See appeal status

Collection & Payment of the Municipal Accommodation Tax

The payment process for the MAT on short-term rentals is currently being finalized. Information on how short-term operators and companies will collect and remit the MAT back to the City will be available shortly.