Toronto Joins Vancouver, Ottawa, Montréal, Québec City, Kelowna, and Others to Consider Rising Tourism Taxes in Canada from 2026: Everything You Need To Know

Published on November 22, 2025

Toronto joins Vancouver, Ottawa, Montréal, Québec City, Kelowna, and others in considering rising tourism taxes in Canada from 2026. These increases are designed to fund local infrastructure, services, and major events like the 2026 FIFA World Cup, ensuring sustainable growth. The proposed tax hikes are aimed at strengthening the cities’ capacity to accommodate the influx of international visitors, improving tourism-related services, and enhancing public infrastructure. In Toronto, the Municipal Accommodation Tax (MAT) will rise temporarily to 8.5% from 6% starting June 1, 2025, while Vancouver is implementing a 2.5% additional tax to support World Cup preparations. With other cities also reviewing similar measures, this trend underscores Canada’s commitment to balancing growth with quality visitor experiences.

Toronto: Major Tax Increase for FIFA World Cup Funding

Toronto is set to implement a temporary increase in the Municipal Accommodation Tax (MAT) for the 2026 FIFA World Cup. The MAT will rise from 6% to 8.5%, starting June 1, 2025, and lasting until July 31, 2026. This increase is aimed at generating revenue to support the city’s costs associated with hosting the global sporting event. The additional funds will be used to improve infrastructure and services, ensuring a seamless experience for visitors.

Vancouver: 2.5% Tax to Fuel World Cup Preparations

Vancouver is applying a 2.5% additional tax on accommodations as part of a Major Events Municipal and Regional District Tax (MRDT). The extra fee is specifically intended to help fund Vancouver’s contribution to the 2026 FIFA World Cup. As the city prepares to welcome global visitors, this tax aims to enhance local infrastructure, services, and tourism programs. The implementation of this additional tax will support the city’s role in hosting one of the most-watched sporting events in the world.

Ottawa: Proposed Tax and Fare Increases for 2026

Ottawa is considering a range of changes in 2026, starting with a proposed increase of 1% in the Municipal Accommodation Tax (MAT), raising the rate from 5% to 6%. This proposal is part of the city’s draft 2026 budget, aiming to fund major cultural festivals and infrastructure projects such as Lansdowne 2.0. In addition, transit fares (OC Transpo) are set for a 2.5% increase. These adjustments are aimed at enhancing public services and ensuring the city’s growth as a key cultural hub.

Montréal: Discussions on Tourist Tax Increase

Montréal, in collaboration with the Quebec provincial government, is reviewing the possibility of increasing the Tourist Tax on accommodations. This move is part of an ongoing effort to bolster funding for tourism programs and enhance local development. The tax changes are under discussion and are expected to support the growing tourism sector by improving infrastructure and ensuring that the city continues to attract international visitors. However, as of now, a specific rate increase for 2026 has yet to be finalized.

Québec City: Awaiting Provincial Decision on Tourist Tax

Québec City is part of an ongoing provincial review regarding potential increases to the tourist tax on accommodations. These efforts are designed to ensure sustainable tourism funding and improve the city’s infrastructure. Although discussions are ongoing, no specific increase rate for 2026 has been confirmed yet. The outcome of these deliberations will likely shape the future of local tourism funding and services in Québec City.

Kelowna: Potential Accommodation Tax Hike Amid Housing Pressures

Kelowna is reconsidering an increase to its accommodation tax in response to rising tourism numbers and ongoing housing challenges. Previously, in 2016, the city’s tourism body proposed raising the hotel room tax from 2% to 3% to fund marketing and tourism development efforts. While the proposal didn’t immediately become law, the city’s ongoing housing affordability crisis could reignite this conversation. A potential tax increase could emerge in the coming budget cycle, especially as local government looks for revenue strategies to address these issues. This change would likely affect tourists staying in local hotels, motels, and short-term rentals.

Other Canadian Cities Considering Tourism Tax Increases

In addition to the cities already mentioned, several other Canadian cities may also consider increasing tourism taxes to support local infrastructure and services. Calgary, Alberta, could raise accommodation taxes as part of a broader initiative to fund tourism programs and infrastructure improvements. Similarly, cities like Edmonton and Victoria are also reviewing their tax structures to accommodate rising tourism numbers and enhance visitor services. As these cities continue to grow in popularity, it is likely that more municipalities across Canada will explore tourism tax hikes to ensure sustainable development, especially in preparation for major events and increased international visitors.

Conclusion

Toronto, along with Vancouver, Ottawa, Montréal, Québec City, Kelowna, and other Canadian cities, is set to implement rising tourism taxes starting in 2026. This move aims to bolster local infrastructure, services, and tourism-related projects, particularly in preparation for global events like the 2026 FIFA World Cup. By increasing taxes, these cities seek to ensure a sustainable, well-equipped tourism sector that can support growing visitor numbers and provide enhanced services.

Toronto joins Vancouver, Ottawa, Montréal, Québec City, Kelowna, and others in considering rising tourism taxes in Canada from 2026. These increases are designed to fund local infrastructure, services, and major events like the 2026 FIFA World Cup, ensuring sustainable growth.

As the tax increases are finalized, travelers should anticipate higher accommodation costs, but with the assurance that the funds will directly benefit tourism infrastructure and the overall visitor experience across these key Canadian destinations.