The Toronto hotel tax, officially the Municipal Accommodation Tax, is 8.5% of your room price from June 1, 2025 through July 31, 2026, after which it is scheduled to drop back to its usual 6%. It’s added to your bill on top of Ontario’s 13% Harmonized Sales Tax, collected by the hotel or rental host at checkout. The temporary bump was approved under Bylaw 1259-2024 to help cover costs of hosting six FIFA World Cup 2026 matches in the city.1City of Toronto. Municipal Accommodation Tax
If you booked and fully paid for your stay before June 1, 2025, you’re locked in at 6%. A deposit or partial prepayment doesn’t count. Any payment made on or after June 1, 2025 is charged at 8.5%.
What Kinds of Stays It Applies To
The tax applies broadly. Hotels, motels, hostels, and bed and breakfasts all charge it. Short-term rentals booked through platforms like Airbnb or Vrbo fall under the same rules as traditional hotels, so switching from a hotel to a rental won’t save you the tax.2City of Toronto. Short-Term Rental Municipal Accommodation Tax
The tax is calculated on the room rate and any mandatory booking fees. Charges for meals, room service, internet, parking, or phone calls are not part of the base.
How the Total Adds Up
Here’s where the math surprises some travelers. When your accommodation provider is registered for HST (virtually every hotel is), the 13% HST is calculated on the room rate plus the MAT combined, not the room rate alone. Using the city’s example for a stay during the temporary rate period:
- Room rate: $100.00
- MAT at 8.5%: $8.50
- HST at 13% of $108.50: $14.11
- Total: $122.61
On a $100 room, you pay $22.61 in combined tax rather than the $21.50 you’d get from adding the two rates independently. The gap grows with pricier rooms. Small short-term rental operators who aren’t HST-registered won’t charge HST on the MAT, but most commercial accommodations will.2City of Toronto. Short-Term Rental Municipal Accommodation Tax
The MAT must appear as a separate line item on your bill. During the temporary period, hotels are required to itemize the increase as “Temporary MAT Increase – 2026 Major Sports Tournament.”1City of Toronto. Municipal Accommodation Tax
Who Doesn’t Pay
Some stays are exempt:
- Stays of 30 or more consecutive days in the same room
- Short-term stays at universities and colleges
- Shelters and emergency housing
- Hospitals and long-term care homes
The 30-day rule is the one most likely to matter to business travelers and people relocating. It must be 30 consecutive days in the same room. Checking out and back in, or switching rooms partway through, can reset the count and leave you owing the tax on the whole stay.
If You Were Charged in Error
Guests don’t pay the city directly, and there’s no form to file. The hotel or host collects the tax and remits it. If you believe you were charged when an exemption should have applied, such as a stay that ran past 30 days, contact the accommodation provider first. They collected the tax and are responsible for refunding it when the charge was made in error. If that doesn’t resolve it, the City of Toronto’s MAT office can be reached at 416-395-6600 or mat@toronto.ca.1City of Toronto. Municipal Accommodation Tax