What Is the Sales Tax on Hotel Rooms in Ontario? Complete Guide

Learn about the 13% HST and up to 4% Municipal Accommodation Tax on hotel rooms in Ontario. Know what taxes apply before booking your stay.

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In Ontario, the sales tax on hotel rooms includes a combination of 13% HST (Harmonized Sales Tax) and, in certain jurisdictions, an additional Municipal Accommodation Tax (MAT) of up to 4%. This brings the total tax rate to 17% in some areas. Verify with your hotel for the exact rate applicable.

FAQs & Answers

  1. What is the Harmonized Sales Tax (HST) rate on hotel rooms in Ontario? The HST rate on hotel rooms in Ontario is 13%, which combines provincial and federal sales taxes.
  2. Does Ontario charge an additional tax on hotel stays besides HST? Yes, some jurisdictions in Ontario impose a Municipal Accommodation Tax (MAT) of up to 4% on top of the 13% HST.
  3. How much total tax can I expect to pay on a hotel room in Ontario? Depending on the location, the total tax on hotel rooms in Ontario can be as high as 17%, combining 13% HST with up to 4% MAT.
  4. Should I check the hotel tax rate before booking a hotel in Ontario? Yes, it is recommended to verify the specific tax rate with your hotel, as the Municipal Accommodation Tax may vary by municipality.

Watch More

For more information on taxes related to travel and accommodations in Ontario, explore our guides on HST rules, Municipal Accommodation Taxes across Canada, and travel budgeting tips. Understanding these taxes can help you plan your trip expenses more effectively.

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