Provincial Tourism Levy & Lodging Tax Guide for Canadian Hosts 2026

Canada Lodging & Tourism Tax 2026

Updated October 2026 · official source

The 5% federal GST (or HST in harmonized provinces) applies to short-term accommodation, meaning stays of less than one month at more than $20 per day, across Canada.
If your taxable supplies exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you must register for GST/HST with the CRA.
The one-month rule: continuous occupancy of one month or more is generally exempt from GST/HST.
Keep your records for six years from the end of the year they relate to, as the CRA generally requires.
In Quebec, tourist accommodation (31 days or less) generally requires a registration certificate and number issued through the CITQ.

Vezpa calculates and tracks your GST/HST, provincial taxes and municipal levies automatically on every booking. Try the demo ->

Estimated total

— Provincial tourism levy

Estimate only — verify your province/municipality rate.

Vezpa calculates and collects the lodging tax automatically. Try the demo

19 April 2026 · Reading time ~8 min · Tax & Compliance

Paolo Vezzola

Founder · Vezpa PMS · Profile →

If you rent out a room, cottage, apartment or vacation home anywhere in Canada, you are typically subject to multiple layers of tax on bookings. Unlike countries with a single national tourism tax, Canada layers federal GST (or harmonized HST) with provincial sales taxes, province-wide tourism levies, and municipal accommodation taxes — each with different rates, filing schedules, and platform-collection rules. Penalties for non-compliance can range from interest charges to loss of short-term rental licence. This guide provides an overview of the Canadian accommodation tax system as of 2026 and an indicative province-by-province reference.

Indicative data — always verify with the CRA, your province and municipality: the rates and rules in this guide are indicative and based on publicly available sources. They may not reflect the current law in your province or municipality. Before collecting or remitting any tax, confirm with the Canada Revenue Agency, your provincial revenue authority, your municipality and a qualified Canadian tax professional.

Legend: values marked with an asterisk (*) are indicative and have not been verified against official sources — always check with the relevant tax authority before relying on them.

The Canadian tax structure for accommodation

Canada does not have a federal lodging tax as such. Instead, accommodation providers deal with up to three overlapping layers of taxation:

Federal GST or HST: The 5% Goods and Services Tax applies to short-term accommodation (stays of less than one month at more than $20 per day) across Canada. In five provinces (Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island), the federal GST is combined with the provincial sales tax into a single Harmonized Sales Tax (HST) ranging from 13% to 15%.
Provincial sales tax: In non-harmonized provinces (British Columbia, Saskatchewan, Manitoba, Quebec), a separate provincial sales tax applies on top of the federal GST. Alberta has no provincial sales tax.
Tourism levies and municipal accommodation taxes: Many provinces and municipalities impose additional levies specifically on accommodation. These are separate from GST/HST and must be collected and remitted independently.

As a host, you are legally responsible for collecting all applicable taxes from your guests, remitting them to the correct authorities on time, and keeping records for audit purposes. “I didn’t know” is not a defence.

The one-month rule: GST/HST applies to short-term accommodation, i.e. stays of less than one month. If a guest occupies the unit continuously for one month or more, the stay is generally exempt from GST/HST. However, provincial and municipal levies use their own thresholds (for example, 27 days or more for BC PST and MRDT, 28 days or more for the Alberta Tourism Levy) — always check your specific province and municipality.

HST in Canada: which provinces charge it on accommodation

HST (Harmonized Sales Tax) replaces GST plus provincial sales tax in five provinces, and it applies to short-term accommodation under the same one-month rule as GST. The rates in force in October 2026:

Ontario: 13% HST
Nova Scotia: 14% HST
New Brunswick, Prince Edward Island, Newfoundland & Labrador: 15% HST

The other provinces and the territories charge the 5% GST instead, plus their own provincial tax where one exists (see the table below). Municipal accommodation taxes such as Toronto’s MAT or Halifax’s Marketing Levy are charged on top of HST, not included in it.

Province-by-province breakdown

The table below summarises the tax rates applicable to short-term accommodation in each province as of October 2026 (the territories apply only the 5% GST). Totals are simple sums: where GST/HST is also charged on the levy itself (for example on Ontario MAT or Quebec's tax on lodging), the effective total is slightly higher. Verify current rates with your provincial revenue authority before relying on these figures.

Province/Territory	GST/HST	Provincial tax	Tourism levy	Total tax range
British Columbia	5% GST*	8% PST*	MRDT 2-3% in participating areas (+2.5% Major Events MRDT in Vancouver until 31 Jan 2030)	13% – 18.5%
Alberta	5% GST*	None	Tourism Levy 6% (bookings from 1 April 2026; 4% before)	11%
Saskatchewan	5% GST*	6% PST*	Varies by municipality	11%+*
Manitoba	5% GST*	7% RST*	Varies by municipality (Winnipeg 6%)	12%+*
Ontario	13% HST*	Included in HST	MAT up to 6%* (Toronto, Ottawa, etc.)	13% – 19%*
Quebec	5% GST*	9.975% QST*	Lodging tax 3.5%*	~18.5%*
New Brunswick	15% HST*	Included in HST	None province-wide	15%*
Nova Scotia	14% HST*	Included in HST	Marketing Levy 3% (Halifax)	14% – 17%
Prince Edward Island	15% HST*	Included in HST	None province-wide; check local levies (e.g. Charlottetown)*	15%+*
Newfoundland & Labrador	15% HST*	Included in HST	None province-wide	15%*

Note on Quebec: Quebec's combined tax burden on accommodation is among the highest in Canada (indicatively around 18.5%*). Additionally, tourist accommodation in Quebec (stays of 31 days or less) generally requires a registration certificate and registration number issued through the CITQ (Corporation de l'industrie touristique du Québec). Operating without one can attract significant fines*; confirm the current rules with CITQ and Revenu Québec.

Municipal accommodation taxes (MAT)

In addition to provincial tourism levies, a growing number of Canadian municipalities impose their own accommodation taxes. These are especially common in major tourist destinations:

Toronto: Municipal Accommodation Tax 6% on short-term rentals and hotel rooms (a temporary 8.5% rate applied from 1 June 2025 to 31 July 2026)
Ottawa: Municipal Accommodation Tax 6%*
Vancouver: no MAT, but the 3% MRDT plus a temporary 2.5% Major Events MRDT (1 February 2023 to 31 January 2030), both administered by the province alongside PST
Niagara Falls: MAT 4% (rising to 5% on 1 April 2027)
Mississauga: MAT 6%*
Waterloo Region: MAT 4%*
Winnipeg: Accommodation Tax 6% on short-term rentals (bookings from 1 April 2024)
Halifax: Marketing Levy 3% on top of HST (extended to short-term rentals in October 2023)

The list of participating municipalities is growing every year. Ontario alone has seen dozens of municipalities adopt MAT since the legislation enabling it was passed. Check with your local municipality to confirm whether a MAT applies to your property.

When does Airbnb/VRBO collect for you — and when they don’t

Airbnb

Since 1 July 2021, accommodation platform operators such as Airbnb must collect and remit GST/HST on short-term accommodation booked through them when the host is not registered for GST/HST. If you are registered, you give the platform your GST/HST number and collect and remit the tax yourself. Coverage of provincial and municipal levies varies by jurisdiction. Indicatively:

Airbnb collects GST/HST on bookings for hosts who are not registered for GST/HST
In Quebec, Airbnb may collect QST and the lodging tax*
In BC, Airbnb may collect PST and MRDT in participating municipalities*
In Ontario, Airbnb may collect the Municipal Accommodation Tax in Toronto and certain other municipalities*
In Alberta, online brokers that take payment (such as Airbnb) have had to collect and remit the Tourism Levy since 1 October 2024; hosts remain responsible for the levy on their direct bookings
Coverage of smaller municipal levies varies — always verify for your specific location

VRBO

VRBO (part of the Expedia Group) may also collect GST/HST on Canadian bookings. Coverage of provincial and municipal taxes can differ from Airbnb's. Verify VRBO's specific collection status for your municipality and rely on platform collection only where it is explicitly confirmed in your hosting dashboard.

Booking.com

Booking.com may collect GST/HST on Canadian bookings. Its coverage of provincial and municipal accommodation taxes tends to be narrower than Airbnb's or VRBO's, so hosts may remain responsible for those layers. Confirm with the platform and your tax authority.

The safe approach: Register with the CRA for GST/HST and with all applicable provincial and municipal tax authorities regardless of what platforms you list on. Even if Airbnb collects today, platform policies change, you may add direct bookings that no platform covers, and you remain legally responsible for ensuring the correct amounts are collected and remitted.

How to register and file

The general process for tax registration and filing for Canadian accommodation providers follows these steps:

Register for a GST/HST account with the CRA: If your total revenue from taxable supplies exceeds $30,000 over four consecutive quarters, you must register. Even below this threshold, voluntary registration is recommended because it lets you claim input tax credits on your business expenses.
Register with your provincial revenue authority: In non-harmonized provinces (BC, SK, MB, QC), you need a separate provincial sales tax registration. In Quebec, you also need a QST registration with Revenu Québec (and, for direct bookings, registration for the tax on lodging) plus a tourist accommodation registration certificate issued through the CITQ.
Register for provincial tourism levies: If your province has a tourism levy (Alberta, BC MRDT), register with the appropriate authority unless a registered platform collects it for all your bookings. In Alberta, the Tourism Levy is administered by Tax and Revenue Administration (TRA); in BC, MRDT is administered together with PST by the provincial Ministry of Finance.
Register for municipal accommodation tax: If your municipality imposes a MAT, register with your municipal government. In Ontario, this is typically handled through the city treasurer’s office.
Collect the correct total tax on every booking: Add all applicable layers to the room rate. Show each tax as a separate line item on the guest receipt where required.
File on schedule: GST/HST is typically filed quarterly or annually with the CRA. Provincial taxes and municipal levies have their own filing schedules — some are monthly, others quarterly. Late filings incur interest and penalties.
Keep records for six years: The CRA generally requires records to be kept for six years from the end of the year they relate to. Keep copies of every reservation, tax collected and filing made.

Automating tax compliance with PMS

A well-configured PMS eliminates the most error-prone parts of accommodation tax compliance:

Automatic calculation: Configure your GST/HST, provincial tax and municipal levy rates once. Every reservation — whether from Airbnb, VRBO, Booking.com or your direct booking engine — has the correct tax applied automatically.
Tax tracking per reservation: See exactly how much tax you collected on each booking, broken down by type (GST/HST, provincial, municipal).
Period summaries: Generate quarterly or annual tax reports showing total room revenue, tax collected by type, and the amount to remit to each authority.
Rate updates: When a tax rate changes or a new municipal levy is introduced, update it once in the PMS and all future bookings use the new rate.

Vezpa supports multiple tax layers per property, automatically applies them to every reservation from every channel, and provides clear reporting for your filings. You configure your rates during setup and the system handles the math from there.

Frequently asked questions

Do I need to collect GST/HST on direct bookings too?

Yes, if you are registered (or required to register) for GST/HST. If a guest books through your own website, calls you directly, or walks in, you must charge GST/HST plus any applicable provincial and municipal taxes yourself. Accommodation platforms collect GST/HST only on behalf of hosts who are not registered; a registered host gives the platform its GST/HST number and accounts for the tax itself. Provincial and municipal levies can apply even if you are a small supplier who is not registered for GST/HST.

What happens if I have not been collecting the correct taxes?

Contact the CRA and your provincial revenue authority as soon as possible. The CRA offers a Voluntary Disclosures Program that may reduce or waive penalties if you come forward before an audit. The longer you wait, the more back taxes, interest and penalties accumulate. Provincial authorities have similar programs in most jurisdictions.

Does the $30,000 threshold apply to accommodation?

Yes. If your taxable supplies (gross revenue before expenses, including those of associated businesses) exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters, you must register for GST/HST. However, even below this threshold, voluntary registration is often advantageous because it allows you to claim input tax credits on expenses like cleaning supplies, furniture and maintenance.

Do I need a CITQ number if my property is in Quebec?

Generally yes. Under Quebec's Tourist Accommodation Act, anyone offering lodging to tourists for periods of 31 days or less — including short-term rental hosts renting their principal residence — must register and obtain a registration certificate with a registration number, issued through the Corporation de l'industrie touristique du Québec (CITQ). Digital accommodation platforms must verify the certificate and display the registration number on every listing. Fines for non-compliance can be significant*; check the current rules.

Is the Alberta Tourism Levy the same as GST?

No. The Alberta Tourism Levy is a separate tax on accommodation — 6% for bookings made on or after 1 April 2026 (4% before) — administered by Alberta's Tax and Revenue Administration (TRA), not the CRA. Unless an online broker collects it for you, you must register, collect and remit it separately from GST. Alberta has no provincial sales tax.

Conclusion

The Canadian accommodation tax landscape is genuinely complex — there is no getting around it. With GST/HST varying by province, separate provincial sales taxes in non-harmonized provinces, province-wide tourism levies, and a growing number of municipal accommodation taxes, no single guide can tell you exactly what you owe. What this guide can do is give you the framework: understand the three-layer structure, check which platforms collect for your specific location, register with every relevant tax authority, and use a PMS that calculates and tracks the amounts automatically.

The most expensive mistake is ignoring the issue and hoping no one notices. The CRA and provincial revenue authorities are increasingly cross-referencing platform listings with their registration databases. The cost of voluntary compliance is low. The cost of an audit finding several years of uncollected tax is not.

Disclaimer: the information in this guide is indicative and based on publicly available sources (CRA publications, provincial revenue authorities, municipal by-laws and industry reporting). Rates, thresholds, filing schedules and platform-collection coverage may have changed after publication. Before collecting or remitting any tax, always confirm with the CRA, your provincial revenue authority, your municipality and a qualified Canadian tax professional. Vezpa accepts no liability for errors or omissions — legal responsibility for tax compliance rests with the property operator.