Municipal Accommodation Tax

The MAT is a fee applied to guest accommodations within municipalities across the Greater Toronto Area.

While some municipalities use MAT revenue for general budget priorities, it ideally should support local tourism promotion, marketing initiatives, and visitor experience enhancements to benefit the visitor economy.

Temporary MAT Increase in Toronto – Effective June 1, 2025

The City of Toronto will temporarily raise its MAT rate from the current 6% to 8.5%, effective June 1, 2025, through July 31, 2026. This temporary increase is specifically intended to help fund hosting the 2026 FIFA World Cup.

GTHA Advocacy Efforts and Position

The Greater Toronto Hotel Association (GTHA) has been actively advocating against MAT increases, highlighting concerns that revenues are often diverted away from tourism initiatives toward broader municipal budget priorities. GTHA supports regulatory reforms, including:

Mandatory economic impact assessments and industry consultations before future MAT increases.

Ensuring a greater portion of MAT revenue is directly invested into tourism promotion and infrastructure.

Exploring diversified municipal revenue sources to lessen reliance on the hotel sector.

Important Information for Toronto Hotel Operators:

The MAT rate of 8.5% must be applied to all stays occurring from June 1, 2025, to July 31, 2026.
The MAT is subject to Harmonized Sales Tax (HST).
On guest folios, clearly itemize this tax as: “Temporary MAT Increase – 2026 Major Sports Tournament”.
Rooms fully booked and paid prior to June 1, 2025, are exempt from the increased rate. However, any deposits or partial prepayments do not qualify for exemption. Payments made from June 1, 2025, onwards are subject to the increased MAT rate.

For additional guidance or clarification, please reach out directly to GTHA or visit the official City of Toronto website.