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Town of New Tecumseth considering Municipal Accommodation Tax

July 17, 2025   ·   0 Comments

By Brian Lockhart

The Town of New Tecumseth is considering a Municipal Accommodation Tax (MAT), which is a fee applied to visitors who stay in commercial accommodations within a municipality.

Introduced in Ontario in 2017, the MAT serves as a revenue tool for municipalities to support tourism-related activities and projects.

In November 2024, New Tecumseth Council received a staff report that approved public and industry consultation on the potential introduction of a MAT. The consultation will help identify existing needs, challenges, and opportunities related to the tax.

Most Ontario municipalities set the tax at 4 per cent, however, rates vary. For example, Toronto increased its MAT from 4 per cent to 6 per cent in May 2023.

At least 50 per cent of net MAT revenue must be allocated to an eligible not-for-profit tourism entity for tourism promotion and development. The remaining funds are used at the municipality’s discretion.

Generally, a MAT tax applies to stays of 30 days or less in hotels, motels, bed and breakfasts, and short-term rentals.

Some accommodations are exempt. These include hospitals, post-secondary dormitories, shelters, and treatment centres.

The MAT applies only to the cost of accommodations. Additional services such as meals, parking, or other hotel amenities are not subject to the tax.

All single-tier and lower-tier municipalities in Ontario have the authority to introduce a MAT.

Currently, over 40 municipalities have adopted this tax.

The Town is seeking public feedback regarding the possible implementation of a MAT.

You can complete an online survey on the Town of New Tecumseth’s website.

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