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.
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.
Update: Changes to the Municipal Accommodation Tax (MAT) Bylaw Effective June 1, 2025
Effective June 1, 2025, the City of Niagara Falls will implement changes to the Municipal Accommodation Tax By-law (By-law 2025 – 009) as approved by City Council on January 14, 2025. The entire By-law can be accessed by visiting the By-laws section of the City’s website at https://niagarafalls.ca/city-hall/by-laws/default.aspx
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 ($ 7.00)
- Four (4) Star – Six Dollars ($ 6.00)
- Three (3) Star – Five Dollars ($ 5.00)
- Two (2) Star – Four ($ 4.00), and
- Unrated properties – Five ($ 5.00)
*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.
Please note:
- 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.
The City of Niagara Falls passed By-law No. 2025-009 to amend the mandatory Municipal Accommodation Tax (MAT) in accordance with Part XI I.1 of the Municipal Act, 2001, S.O. 2001 c. 25, as amended, (the "Act"), and the Transient Accommodation Tax Regulation O. Reg. 435/17.
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