City of Toronto MAT Increase

Effective May 1, 2023, the City of Toronto, will increase the mandatory Municipal Accommodation Tax (MAT) rate on transient accommodations from 4 per cent to 6 per cent in accordance with Bylaw 168-2023.

We have received many inquiries from across Ontario expressing concern regarding the local MAT increases. We are working with the Provincial Government to ensure the overall MAT design is reviewed and amended, including placing a cap on the MAT fees across the province. We acknowledge that Toronto’s increase can set the tone for other municipalities to follow. Recently, a proposed increase motion in Prince Edward County was taken to a council vote. It was successfully defeated because of strong advocating from local hotels supported by ORHMA.

While we continue a negotiation with the Provincial Government, please note the City of Toronto MAT increase only applies to Toronto districts (East York, Etobicoke, North York, Scarborough, Toronto and York) and not across the GTA. Pre-paid reservations made prior to May 1st, 2023 are taxed at 4 per cent, while reservations made prior to May 1st and paid at check out are charged at 6 per cent.

For further information, view GTHA’s comments below.

Pre-paid Toronto Municipal Accommodations Tax to Remain at 4 per cent for 2 Years

Greater Toronto Hotel Association (GTHA) has been actively working with the City of Toronto on the changes to the Municipal Accommodation Tax. While we are disappointed that the increase is proceeding, we are pleased to report that that as a result of our advocacy efforts, all rooms that have been pre-paid for in advance of May 1, 2023 will be grandfathered at 4 per cent for up to two years until the stay has been completed. The reporting system will make it possible for the hotels to report at 4 per cent and 6 per cent as appropriate for the next two years, commencing at the June 2023 reporting period. If you have any questions, please contact the GTHA.