Municipal Accommodation Tax

The Municipal Accommodation Tax is a mandatory tax imposed by City Council on the purchase of short-term accommodation (for a continuous period of 28 days or less) at hotels, motels, inns, bed and breakfasts and vacation rentals operating in the City of Niagara Falls. The purpose of the MAT is to support and grow the tourism industry in the City of Niagara Falls and to improve the livability of the City for the residents of Niagara Falls.

Purpose of the tax

The goals of the MAT include, but are not limited to:

  • Increasing tourism visitation;
  • Increasing total tourism spend;
  • Increasing tourism asset development and tax assessment; and
  • Undertaking environmental sustainability initiatives in support of the tourism industry and the broader community.

The Niagara Falls Canada Hotel Association (NFCHA) Inc. is a non-profit corporation created for the express purpose of promoting the City of Niagara Falls, Ontario, as a tourism destination. Visit the Niagara Falls Canada Hotel Association's website.

Tax amount

Update: Changes to the Municipal Accommodation Tax (MAT) Bylaw Effective June 1, 2025

Changes to the MAT will be applied based on the star rating of the accommodation property (Hotel, Motel Bed & Breakfast or Vacation Rental Unit) in the following amounts per night:

  • Five (5) Star – Seven Dollars ($7)
  • Four (4) Star – Six Dollars ($6)
  • Three (3) Star – Five Dollars ($5)
  • Two (2) Star – Four ($4), and
  • Unrated properties – Five ($5)

To find the star rating of your accommodation property, please contact the Accounting Supervisor [email protected]

The tiered star rating MAT system

Since its introduction in Niagara Falls, the MAT (Municipal Accommodation Tax) was originally charged at a flat rate of $2.00 per occupied room. However, there was growing concern that this approach was not equitable, particularly when applied to hotels with varying star ratings and nightly rates. To address these concerns and to align with market trends—while also aiming to increase revenue—the tiered star rating system was introduced. This system maintains the consistency of a fixed rate rather than a percentage-based model, but now adjusts the amount charged based on the star rating of the property. Star ratings are sourced from a major global online travel agency, relying on self-reported data provided by the hoteliers themselves.

Tax rules

  • All complimentary rooms must be included on the Municipal Accommodation Tax Remittance Form in the Number of Room Nights Sold. The MAT for all rooms will be based on a property's star rating and applied based on the date of stay, not the booking date.
  • If any guests exceed the 28-day stay (extended stay guests) and there is no formal landlord-tenant relationship, a MAT amount based on the property's star rating must be submitted. These rooms must be included on the Municipal Accommodation Tax Remittance Form in the Number of Room Nights Sold.
  • Consistent with the previous By-Law, the Municipal Accommodation Tax will be identified on the invoice or receipt for the stay.
  • All Hotel, Motel, Bed & Breakfast and Vacation Rental Unit owners/operators have been provided advance notice to allow time to adjust systems and internal processes as required.

Please contact the Accounting Supervisor at [email protected] if you have any questions.

Authority to charge tax

The City can charge the Municipal Accommodation Tax (MAT) under the Municipal Act, 2001 and Ontario’s Transient Accommodation Tax Regulation (O. Reg. 435/17). By-law 2025-009 was approved by City Council on January 14, 2025. It allows the city to apply the tax to short-term stays in accommodations such as hotels and motels.  The tax is mandatory and cannot be refused.  Only those accommodation types listed in the exemptions section are not charged the tax.

The MAT By-law and amendments can be found on the By-laws section of the City’s website.

Exemptions to charging the tax

The Municipal Accommodation Tax does not apply to the following types of accommodations:

  1. Government agencies, boards, commissions, or organizations controlled by the Ontario government.
  2. School boards as defined by the Education Act.
  3. Colleges, universities, and post-secondary schools, when they provide housing for students actively enrolled and attending classes.
  4. Public and private hospitals listed under the Public Hospitals Act or the Private Hospitals Act.
  5. Retirement homes, hospices and long-term care homes as defined in the Long-Term Care Homes Act, 2007.
  6. Treatment centers funded by the province, every house for refuge or for reform of offenders, non-profit shelters for the relief of the poor or for an emergency
  7. Campsites or trailer sites at campgrounds, tourist parks, or trailer parks.
  8. Employee housing provided by employers at their place of business.
  9. Hospitality rooms without beds used for meetings, merchandise displays, or entertaining.

Frequently Asked Questions (FAQ)

Documents and forms