City Accommodation Tax & Short Term Rental Bylaw

The City of Toronto is implementing a four-per-cent Municipal Accommodation Tax (MAT) on all hotel accommodations within Toronto as of April 1 and short-term rentals on or after June 1, pending the enactment of the short-term rental bylaw.

The MAT will be applicable to motels, hostels, private and fraternal clubs, condo hotels, short-term rentals, multi-use complexes used for transient accommodation, and all Toronto hotels, including full service, limited service and small hotels.

The short-term rental bylaw is under appeal at the Ontario Municipal Board (OMB) and will only come into effect on or after June 1, pending the OMB decision. For short-term rental guests, the tax will be automatically collected through the short-term rental platform’s transaction process.

A portion of this tax will provide funding for Tourism Toronto to support the city’s tourism industry. The tax will also provide funds for City programs and services, such as road repair, transit, economic development, culture, parks and recreation.