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Toronto Airbnb hosts must collect 8.5% MAT from June 1, 2025 to July 31, 2026. Learn filing, Airbnb collection, HST, and records.
TL;DR:
Toronto short-term rental hosts must deal with the Municipal Accommodation Tax, also called MAT. The City of Toronto temporarily increased the MAT rate from 6% to 8.5% for transient accommodations from June 1, 2025 to July 31, 2026. Registered short-term rental operators must file a MAT report every quarter, even if a platform such as Airbnb collected and remitted the tax for them.
For Airbnb hosts, the key point is simple. The tax may be collected at checkout on Airbnb, but the host still needs clean records, correct reporting, and a clear understanding of what revenue does or does not need to be reported.
FullHome helps Toronto hosts stay organized with guest records, pricing, platform coordination, and rental operations, so tax season does not become a last-minute scramble.
Why Toronto Airbnb hosts are asking about MAT in 2026
If you host on Airbnb in Toronto, the tax rules matter more now than they did a few years ago.
The 2026 issue is not just that Toronto has a short-term rental tax. The bigger issue is that the rate changed, the reporting rules still apply, and many hosts assume Airbnb handles everything.
That assumption can create problems.
The City says registered short-term rental operators must file a MAT report even when the tax was collected by a short-term rental company or when no tax was collected during the period. The City also says operators must keep accommodation transaction records, including revenue collected and exemptions that may apply.
So the question is not only, “Does Airbnb collect Toronto MAT?”
The better question is:
Can you prove what was collected, what was remitted, what needs to be reported, and what belongs in your own records?
That is where many hosts get caught off guard.
What is the Municipal Accommodation Tax in Toronto?
The Municipal Accommodation Tax is a local tax on paid short-term accommodation in Toronto. It applies to hotels and short-term rentals, including eligible Airbnb stays.
The City uses MAT revenue to support Destination Toronto, tourism-related programs, and public services visitors use, such as transit, roads, parks, culture, recreation, and public spaces.
For Toronto short-term rental hosts, MAT is part of the operating cost structure. It affects:
- Guest checkout price
- Platform reporting
- Quarterly filings
- Host bookkeeping
- HST calculations, if the host is HST-registered
- Pricing strategy across Airbnb, Vrbo, direct bookings, and other platforms
A host who prices without understanding MAT may think their nightly rate is competitive, then lose margin once tax, cleaning fees, platform fees, and seasonal pricing changes are added.
Who must file Toronto MAT for a short-term rental?
A registered Toronto short-term rental operator must file a MAT report for each reporting period.
This applies even if:
- Airbnb collected and remitted MAT
- No bookings happened during the quarter
- The host only rented through a platform
- The host had a mix of Airbnb and direct bookings
The City says registered operators must file a MAT report even when MAT was collected by a short-term rental company or when no tax was collected. It also says operators must collect and remit 8.5% MAT from June 1, 2025 to July 31, 2026, with payments due quarterly within 30 days after the quarter ends.
This makes MAT filing part of the rental operation, not just the tax return.
A Toronto host should treat each quarter as a closed reporting period. Once the quarter ends, the host should confirm:
- Which bookings came from Airbnb
- Which bookings came from other platforms
- Which stays were direct bookings
- Which revenue should be excluded because Airbnb reported it
- Which revenue still needs to be reported and paid by the operato
What if your Toronto Airbnb had no bookings?
You still file.
The City says hosts must file a MAT report for each reporting period, even if the short-term rental was not rented out.
This matters because a zero-booking quarter is still a reporting period.
What is the Toronto Airbnb MAT rate in 2026?
From June 1, 2025 to July 31, 2026, the Toronto MAT rate is 8.5%. The City describes this as a temporary increase from the previous 6% rate.
Airbnb’s Canadian tax collection page also lists Toronto MAT at 8.5% of the listing price and cleaning fee for eligible Toronto reservations. Airbnb notes that this applies to reservations 30 nights and shorter for hotel listings and 27 nights and shorter for all other listing types on its platform.
That creates one important practical point.
The City defines short-term rentals as rental periods of less than 28 consecutive days, while Airbnb’s platform tax page explains how it applies tax collection by listing type and reservation length. Hosts should keep platform records and City filing rules aligned instead of relying on memory or screenshots.
Simple MAT example for a Toronto Airbnb stay
Here is a simple example.
If a guest books a Toronto Airbnb stay and the taxable accommodation amount is $1,000, then the MAT at 8.5% is:
$1,000 × 8.5% = $85
If Airbnb collects the MAT at checkout, the guest may see the tax added during booking. If the booking comes through another channel, the host may need to make sure the MAT is collected and remitted correctly.
This is where a lot of owner-operators make small mistakes.
They may track Airbnb payouts, but not total guest charges. They may track nightly revenue, but not cleaning fees. They may use one spreadsheet for Airbnb and forget direct bookings. They may assume “platform collected” means “nothing to file.”
Toronto says otherwise. Registered operators must still file the MAT report for each reporting period.
Does Airbnb collect and remit Toronto MAT for hosts?
Yes, Airbnb can collect and remit Toronto Municipal Accommodation Tax on eligible bookings. But that does not remove the host’s reporting duty.
The City of Toronto says short-term rental companies can sign a Voluntary Collection Agreement with the City. If a platform collects and remits MAT for the host, the host must still file a MAT report for each reporting period. That applies even if the property had no bookings during the quarter.
This is the part many Toronto Airbnb hosts miss.
Airbnb may handle the tax collection on platform bookings, but the registered operator still needs to keep the short-term rental file clean.
That includes:
- Filing the quarterly MAT report
- Keeping booking and revenue records
- Separating Airbnb revenue from non-Airbnb revenue
- Tracking direct bookings, Vrbo bookings, repeat guest bookings, and platform payouts
- Confirming which bookings were under 28 consecutive days
- Keeping proof that Airbnb collected and remitted MAT where applicable
The City’s filing instructions are clear. If Airbnb collected and remitted MAT on your behalf, you should not include revenue collected by Airbnb in the total revenue field. You also should not include rental nights through Airbnb, because Airbnb reports those nights directly to the City.
That means the MAT report is not just a tax form. It is also a booking reconciliation task.
A host needs to know what came from Airbnb, what came from other platforms, what came from direct bookings, and what must still be reported or paid.
When are Toronto Airbnb MAT reports due?
Toronto short-term rental operators must file and pay MAT quarterly. The payment is due within 30 days of the end of each quarter.
| Reporting Period | MAT Due Date |
|---|---|
| January 1 to March 31 | April 30 |
| April 1 to June 30 | July 30 |
| July 1 to September 30 | October 30 |
| October 1 to December 31 | January 30 |
A simple habit helps here.
Export your booking data at the end of every month. Do not wait until the quarter closes. By then, cleaning fees, cancellations, altered reservations, refunds, platform adjustments, and direct guest payments can get harder to trace.
For hosts with more than one booking channel, the cleanest setup is a monthly ledger with separate columns for:
- Booking platform
- Guest name or reservation ID
- Check-in date
- Check-out date
- Number of nights
- Rental type
- Nightly rate
- Cleaning fee
- Gross accommodation revenue
- MAT collected
- MAT remitted by platform
- MAT still payable by host
- Notes on refunds or cancellations
This is also where professional airbnb property management helps. FullHome helps keep booking records, pricing, guest communication, and platform activity organized, so the owner is not trying to rebuild a quarter from scattered emails and payout screenshots.
What happens if a Toronto host does not file or remit MAT?
The City says it is the operator’s responsibility to ensure the correct MAT amount is collected and remitted. If an operator fails to report and remit MAT, the City may revoke the short-term rental registration or deny registration renewal.
That creates a direct business risk.
If the registration is affected, the host may lose the legal ability to operate the short-term rental. That can also affect future bookings, listing visibility, and revenue plans.
A host must have submitted all MAT reports and payments to renew a short-term rental registration. If the registration is not renewed, existing reservations may be cancelled, listings may be removed from platforms, and after 90 days the registration may be automatically cancelled.
For owners, MAT compliance should sit beside pricing, cleaning, and guest reviews as a core operating task.
A missed MAT filing is not a small admin issue. It can become a booking interruption.
Is HST charged on Toronto MAT?
The City says MAT is only subject to HST if the operator is registered for HST as a short-term rental operator. The City also states that operators do not have to register for HST if their short-term rental income is below $30,000.
For HST-registered operators, the City gives this sample calculation for the June 1, 2025 to July 31, 2026 period:
| Item | Amount |
|---|---|
| Room subtotal | $100.00 |
| MAT at 8.5% | $8.50 |
| HST at 13% | $14.11 |
| Total | $122.61 |
The detail that matters is this: HST may apply on the MAT portion if the operator is HST-registered. That changes the guest-facing total and the host’s bookkeeping.
So a Toronto Airbnb host should not look only at the nightly rate. The actual guest price may include:
- Room subtotal
- Airbnb Cleaning fee, depending on platform treatment
- MAT
- HST, if applicable
- Airbnb guest service fees
- Other platform-specific charges
For owners, this affects pricing psychology. A nightly rate that looks competitive before taxes may look expensive after the final checkout total. Good revenue management accounts for the full guest price, not just the host payout.
What records should Toronto Airbnb hosts keep for MAT?
Toronto hosts should keep a clean record of every short-term rental transaction, even when Airbnb collects and remits MAT for the booking.
Short-term rental operators must keep accommodation transaction records, including revenue collected and any exemptions that may apply during a reporting period. It also says operators must keep rental records such as the number of nights rented, nightly price, total price charged, and whether the rental was an entire-unit or partial-unit stay.
A practical MAT file should include:
| Record | Why it matters |
|---|---|
| STR registration number | Needed for filing and payment |
| Booking platform | Separates Airbnb from direct, Vrbo, and other bookings |
| Reservation ID | Helps match payouts to guest stays |
| Guest stay dates | Confirms the reporting period |
| Number of nights | Helps confirm whether the stay falls under short-term rental rules |
| Rental type | Toronto asks operators to identify entire-unit or partial-unit rentals |
| Nightly rate | Supports the taxable accommodation amount |
| Cleaning fee | Airbnb lists Toronto MAT as applying to listing price and cleaning fee on eligible bookings |
| Total accommodation revenue | Needed for reconciliation |
| MAT collected | Shows what the guest paid |
| MAT remitted by platform | Helps avoid double-reporting Airbnb revenue |
| MAT payable by host | Applies when bookings were not handled by a collecting platform |
| Refunds or adjustments | Prevents over-reporting or under-reporting |
| Exemption notes | Supports any excluded or exempt accommodation revenue |
Airbnb says Toronto MAT is charged at 8.5% of the listing price and cleaning fee for eligible Toronto reservations. For non-hotel listings, Airbnb lists the rule as applying to reservations 27 nights and shorter. For hotel listings, it lists 30 nights and shorter.
That is why hosts should not rely only on payout totals.
What should hosts exclude from the City MAT report if Airbnb collected the tax?
If Airbnb collected and remitted MAT for a booking, hosts should not include revenue collected by Airbnb in the total revenue field of the MAT report. The City also says hosts should not include rental nights through Airbnb, because Airbnb reports those nights directly to the City.
This is a small instruction with a big impact.
What happens if a host makes a mistake on a MAT report?
The City allows operators to correct a previously submitted MAT report, but corrections are only accepted for the current and previous reporting period. A corrected report replaces the earlier report for that period.
That means hosts should review each quarter quickly.
Do not wait six months to fix a messy report. By then, the correction window may be closed. It may also be harder to trace guest changes, refunds, platform statements, and manual payments.
A simple monthly review can prevent most issues:
- Export Airbnb booking history.
- Export payout records.
- Save invoices or receipts for direct stays.
- Mark which bookings had MAT collected by the platform.
- Reconcile altered reservations and refunds.
- Keep a separate note for bookings longer than the short-term rental threshold.
- Save the filed MAT confirmation.
How long should hosts keep MAT-related records?
For the article, phrase this carefully.
The City’s short-term rental pages clearly say hosts must keep records and provide them to the City upon request. They do not give a simple retention period on the public short-term rental host page reviewed here.
A safe working practice is to keep MAT, booking, payout, and tax records in one organized folder by year and quarter. Hosts should also ask their accountant how long to retain business and tax records for CRA purposes.
This keeps the article accurate without inventing a retention rule.
How FullHome helps hosts stay organized
MAT compliance becomes easier when the rental operation is organized from the start.
FullHome helps Toronto airbnb hosts and short term rental property owners manage the moving parts that feed into clean reporting:
- Booking records
- Guest communication
- Pricing adjustments
- Cleaning coordination
- Maintenance notes
- Platform activity
- Monthly and quarterly rental visibility
For owners, the value is not just convenience. It is control.
A well-managed Airbnb has cleaner records, fewer missed details, and less stress when quarterly filing dates come around.
How Toronto MAT affects Airbnb pricing and guest checkout totals
Toronto MAT affects the final price a guest sees, not just the amount a host earns.
For eligible Toronto Airbnb bookings, Airbnb lists MAT as 8.5% of the listing price and cleaning fee. The City of Toronto also confirms the temporary MAT increase from 6% to 8.5% applies from June 1, 2025 to July 31, 2026.
That means a host should think in terms of guest checkout price, not only nightly rate.
Here is a simple example:
| Charge type | Example amount |
|---|---|
| Nightly stay subtotal | $900 |
| Cleaning fee | $100 |
| Taxable Airbnb amount | $1,000 |
| Toronto MAT at 8.5% | $85 |
| Guest total before other platform fees or HST treatment | $1,085 |
This matters because guests compare the total price before they book.
A listing that looks like $900 may feel like $1,085 once the cleaning fee and MAT appear. Airbnb service fees or HST treatment may increase the checkout total further, depending on the booking and operator setup.
For hosts, the pricing lesson is clear:
A strong nightly rate is not enough. The full checkout price must still feel fair against nearby listings, hotels, serviced apartments, and furnished monthly rentals.
How MAT changes short stay vs longer stay pricing
Toronto defines a short-term rental as all or part of a dwelling unit rented for less than 28 consecutive days. The City says individuals booking short-term rentals during the temporary increase period need to pay 8.5% MAT.
This creates a clear pricing difference between short stays and longer stays.
Short stays may generate higher nightly rates, but they can also bring:
- More frequent turnover
- More cleaning coordination
- More guest messaging
- More tax and reporting events
- More review risk
- More checkout-price sensitivity
Longer furnished stays may reduce turnover pressure and may fall outside Toronto’s short-term rental definition when they are 28 consecutive days or longer. That can make mid-term rental strategy worth comparing for some properties.
Toronto Airbnb MAT Checklist for hosts before filing
Before you file a Toronto MAT report, check the booking data first. Do not start with the payout total.
The City of Toronto requires registered short-term rental operators to collect and remit 8.5% MAT from June 1, 2025 to July 31, 2026. MAT payments are due quarterly, within 30 days after the end of each quarter. Hosts must also file a MAT report for each reporting period, even if the short-term rental was not rented out.
Use this checklist before each filing.
| MAT filing check | What to confirm |
|---|---|
| Reporting period | Confirm the quarter: Jan to Mar, Apr to Jun, Jul to Sep, or Oct to Dec |
| STR registration number | Use the correct City of Toronto short-term rental registration |
| Airbnb bookings | Separate Airbnb bookings where MAT was collected by the platform |
| Non-Airbnb bookings | Identify direct, Vrbo, repeat guest, or other platform bookings |
| Rental nights | Count only reportable nights based on the City’s filing rules |
| Revenue source | Separate gross accommodation revenue from host payout totals |
| Cleaning fees | Confirm whether the platform included the cleaning fee in the taxable amount |
| Refunds and cancellations | Adjust only where the booking data supports it |
| MAT collected | Confirm the dollar amount collected from guests |
| MAT remitted by platform | Keep proof where Airbnb or another platform handled collection |
| MAT payable by host | Calculate what still needs to be remitted directly |
| HST treatment | Confirm with your accountant if you are HST-registered |
| Filing confirmation | Save the submitted report and payment receipt |
Do not report Airbnb-collected revenue twice
This is the most important filing detail for Airbnb hosts.
If Airbnb collected and remitted MAT for the booking, the City says the host should not include revenue collected by Airbnb in the total revenue field. The City also says hosts should not include rental nights through Airbnb, because Airbnb reports those nights directly to the City.
A cleaner filing workflow looks like this:
| Booking type | Filing action |
|---|---|
| Airbnb collected MAT | Keep record, but do not add that revenue to the City MAT revenue field |
| Airbnb did not collect MAT | Review and report if required |
| Direct booking | Include reportable accommodation revenue |
| Repeat guest paid outside platform | Include reportable accommodation revenue |
| Other platform booking | Confirm whether that platform collected and remitted MAT |
| No bookings that quarter | File the report anyway |
The risk is simple.
If you include Airbnb-collected revenue again, you may create double-reporting confusion. If you leave out direct or non-collecting platform revenue, you may under-report.
Save a quarterly MAT folder
Each quarter should have its own folder.
Name it like this:
- 2026 Q1 Toronto MAT
- 2026 Q2 Toronto MAT
- 2026 Q3 Toronto MAT
- 2026 Q4 Toronto MAT
Inside the folder, keep:
- Airbnb reservation export
- Airbnb tax collection details
- Direct booking invoices
- Vrbo or other platform statements
- Refund and cancellation notes
- Cleaning fee records tied to bookings
- Quarterly MAT report copy
- Payment receipt, if payment was required
- Notes for your accountant
This keeps the record trail clean.
It also helps if the City requests details later. Toronto says operators must keep records of short-term rental activity, including rental nights, price, total amount charged, and rental type.
Final pre-filing review
Before submitting the report, ask four questions:
- Did Airbnb already collect and remit MAT on these bookings?
- Are any reportable bookings missing because they happened outside Airbnb?
- Does the revenue number reflect accommodation revenue, not just host payout?
- Did you save proof for the numbers in the report?
If the answer is unclear, pause before filing.
FullHome CTA: Make Toronto Airbnb tax records easier to manage
Toronto MAT is not hard because of the rate alone.
It becomes hard when booking records, cleaning fees, refunds, direct stays, platform payouts, and guest communication sit in different places.
FullHome helps Toronto Airbnb owners keep the operation organized from booking to checkout. That includes guest messaging, pricing support, cleaning coordination, maintenance, listing activity, and rental records.
If you want a more hands-off way to manage your Toronto short-term rental, FullHome can help you keep the business side cleaner and easier to review each quarter.
Talk to our experts about Airbnb management in Toronto and get help building a more organized hosting process.
FAQs About Toronto Airbnb Municipal Accommodation Tax
What is the Toronto Airbnb tax in 2026?
The main local tax Toronto Airbnb hosts need to understand is the Municipal Accommodation Tax, or MAT. From June 1, 2025 to July 31, 2026, the City temporarily increased the MAT rate from 6% to 8.5% for transient accommodations.
Does Airbnb collect Toronto MAT automatically?
Airbnb says guests who book eligible Toronto listings pay 8.5% MAT on the listing price and cleaning fee. Airbnb lists this for hotel listings of 30 nights and shorter, and all other listing types of 27 nights and shorter.
Do Toronto Airbnb hosts still need to file a MAT report?
Yes. The City says registered short-term rental operators must file a MAT report even if a short-term rental company collected the MAT or no tax was collected during the reporting period.
When are Toronto MAT reports due?
Toronto MAT is due quarterly, within 30 days after the end of each quarter. The City lists the due dates as April 30, July 30, October 30, and January 30.
Should Airbnb-collected revenue be included in the City MAT report?
No. If Airbnb collected and remitted MAT, the City says the host should not include Airbnb-collected revenue in the total revenue field. The host should also not include Airbnb rental nights because Airbnb reports those nights to the City.
Is HST charged on Toronto MAT?
The City says MAT is only subject to HST if the operator is registered for HST as a short-term rental operator. The City also states that operators do not need to register for HST if their short-term rental income is below $30,000.
What records should Toronto Airbnb hosts keep for MAT?
Toronto hosts should keep records of rental nights, nightly price, total price charged, rental type, revenue collected, and applicable exemptions. The City says hosts must provide these records upon request.
Final takeaway
Toronto Airbnb MAT is a quarterly compliance task.
The rate is 8.5% from June 1, 2025 to July 31, 2026. Airbnb may collect it on eligible bookings, but registered hosts still need to file MAT reports, keep clean records, and separate Airbnb activity from direct or non-platform bookings.
For hosts, the safest system is simple:
- Track each booking source
- Keep Airbnb-collected MAT separate
- File every quarter
- Save proof
- Review pricing with the full guest checkout total in mind
FullHome helps Toronto hosts keep Airbnb operations organized, so pricing, booking records, and quarterly reporting do not become scattered across platforms, spreadsheets, and inboxes.