Ontario Joins British Columbia, Quebec, Alberta, Nova Scotia, Manitoba and Others to Surge Canada Tourism Growth With New Accommodation Tax Hikes: Everything You Need To Know

Published on December 9, 2025

Ontario, alongside British Columbia, Quebec, Alberta, Nova Scotia, Manitoba, and other provinces, is raising accommodation taxes to boost tourism growth for Canada and fund key infrastructure projects, including major events like the 2026 FIFA World Cup. These tax hikes are part of a nationwide effort to generate revenue for local tourism initiatives, enhance event hosting capabilities, and improve public facilities. Cities such as Toronto, Vancouver, Montreal, and Calgary are set to see significant increases in their accommodation tax rates, which will impact hotel stays and short-term rentals. This article delves into the specifics of the accommodation tax hikes, the reasons behind them, and how they will contribute to the growth and development of Canada’s tourism sector.

Ontario’s Toronto: Taxing the Big City for FIFA 2026

Toronto, Ontario currently has a Harmonized Sales Tax (HST) of 13%, combined with a 6% Municipal Accommodation Tax (MAT), bringing the total estimated hotel tax rate to approximately 19%. Starting June 1, 2025, Toronto will introduce a temporary hike in its MAT, increasing it from 6% to 8.5%. This hike is set to remain in place until July 31, 2026, to help fund the city’s involvement in the 2026 FIFA World Cup. As a result, the total hotel tax rate during this period will rise to approximately 21.5%, which will be one of the highest tax rates among Canadian cities for accommodations.

British Columbia’s Vancouver: World Cup Tax Boost

Vancouver, British Columbia, is subject to a combined Provincial Sales Tax (PST) of 8% and Goods and Services Tax (GST) of 5%. Additionally, the city imposes a 3% Municipal Regional District Tax (MRDT), 2.5% Major Event MRDT, and a 1.5% Destination Marketing Fee (DMF) on accommodations. This brings the total hotel tax rate to approximately 20%. The major event MRDT, which contributes to the high rate, was introduced specifically to help fund the 2026 FIFA World Cup. The extra 2.5% tax increase will likely remain for the duration of the event, keeping the city’s total tax rate elevated during this time.

Ontario’s Ottawa: A Potential MAT Hike for Festivals

Ottawa, Ontario, applies the 13% Harmonized Sales Tax (HST) on accommodations, along with a 5% Municipal Accommodation Tax (MAT). The total tax rate on hotel stays in Ottawa is approximately 18%. However, the city is currently considering a 1% increase to the MAT, which would bring the rate to 6% in its draft 2026 budget. This increase is being proposed to fund important cultural festivals and infrastructure projects. If approved, the new total hotel tax rate would rise to approximately 19%, making Ottawa’s accommodation taxes more aligned with other major cities in Canada.

Quebec’s Montréal: High Taxes, Even Higher Plans

Montréal, Quebec, has a GST of 5% and a Quebec Sales Tax (QST) of 9.975%, making the total sales tax rate in the province very high. On top of these taxes, the city imposes a 3.5% lodging tax, bringing the total hotel tax rate to approximately 19.8%. Quebec’s high provincial sales tax (QST) is the primary contributor to this elevated tax burden. Moreover, the provincial government is currently reviewing the lodging tax for potential increases, which could further push the total tax rate up. This could make Montréal one of the higher tax burden cities for accommodations in Canada.

Alberta’s Calgary: Low Taxes, Big Destination Appeal

Calgary, Alberta, stands out for its relatively low accommodation tax rate. The province of Alberta does not impose a Provincial Sales Tax (PST) or HST, keeping the base tax rate lower than in most other provinces. Calgary does apply a 4% tourism levy and a 6% destination marketing fee (DMF), bringing the total hotel tax rate to 15%. This makes Calgary one of the more affordable cities for travelers in terms of tax burden. The absence of a PST/HST is a key factor in maintaining a lower overall tax rate, which benefits both residents and visitors.

Nova Scotia’s Halifax: Rising Marketing Levy for Tourism

Halifax, Nova Scotia, has a 15% Harmonized Sales Tax (HST), which applies to most goods and services, including accommodations. In addition, the city imposes a 3% Municipal Marketing Levy on lodging, bringing the total estimated hotel tax rate to approximately 18%. The city recently increased the Marketing Levy from 2% to 3%, effective October 1, 2023. This increase was implemented to fund tourism and event promotions within the region. This small but significant increase pushes Halifax’s hotel tax rate in line with many other major cities in Canada, ensuring continued support for its tourism sector.

Quebec’s Québec City: High Taxes with Future Increases on the Horizon

Quebec City, like its provincial neighbor Montréal, faces high tourism taxes due to a combination of federal GST and provincial QST. The city currently imposes a 3.5% lodging tax, which contributes to a total hotel tax rate of approximately 19.8%. The high QST (9.975%) is the primary contributor to this elevated tax burden. However, the tax on lodging is currently under review, as part of a joint provincial effort with Montréal, aimed at improving funding for local tourism initiatives and urban infrastructure. This review is expected to result in an increase in the accommodation tax rate in the near future, making Quebec City’s tax structure even higher.

Manitoba’s Winnipeg: Rising Taxes to Boost Tourism and Development

Winnipeg, the capital of Manitoba, operates under a Provincial Sales Tax (PST), known locally as the Retail Sales Tax (RST), instead of the Harmonized Sales Tax (HST) used in many other provinces. In addition to the 7% PST, Winnipeg applies a 6% Accommodation Tax (AT) on lodging, bringing the total hotel tax rate to approximately 18% (12% total sales tax plus 6% for accommodations). Recently, the city announced a hike in its Accommodation Tax (AT), increasing the rate from 5% to 6%, effective April 1, 2024. The additional revenue will support Economic Development Winnipeg, the Winnipeg Convention Centre, and special events, all aimed at enhancing tourism and local infrastructure.

Ontario, alongside British Columbia, Quebec, Alberta, Nova Scotia, Manitoba, and other provinces, is raising accommodation taxes to boost tourism growth and fund key infrastructure projects, including major events like the 2026 FIFA World Cup.

Conclusion

Ontario, unites with British Columbia, Quebec, Alberta, Nova Scotia, Manitoba, and other provinces, is implementing new accommodation tax hikes as part of a strategic move to foster tourism growth. These tax increases aim to fund key events, such as the 2026 FIFA World Cup, and support ongoing infrastructure projects that will enhance local economies. By boosting funding for tourism and related developments, these hikes are designed to make Canadian cities more competitive in the global tourism market. While these changes will impact travelers, the long-term benefits for local communities and the tourism industry are expected to outweigh the short-term costs.