Last updated: 2026-07-11 — Tax rates, fees, and regulations change often; always check official sources for the latest figures.
When booking accommodation in Canada or the US, the easiest thing to overlook isn’t how nice the listing photos look — it’s that last line on the checkout page: “taxes and fees.” The same apartment can carry completely different tax rates depending on whether you book 5 nights or 35 nights. And in the same city, booking through Airbnb versus finding a monthly rental comes with different legal requirements and cost structures. This piece focuses on something the site hasn’t covered in depth yet: how tourist/accommodation taxes stack up. For a full platform-by-platform comparison, we already have two solid guides on the site, so we’ll link to those rather than repeat them here.
First, figure out which type of stay you’re actually looking for
Before comparing tax rates, decide which category you fall into: a short stay (1–13 nights) usually means choosing between a hotel, Airbnb, or Vrbo; a transitional monthly stay (2 weeks to 3 months) fits furnished-monthly platforms like Blueground or Corporate Stays, or discounted monthly listings on Airbnb/Vrbo; a formal long-term lease (3+ months) is where Zumper, PadMapper, Rentals.ca, Facebook Marketplace, and Kijiji come in. For a detailed comparison of long-term rental platforms, we already have two thorough guides: Canada Rental Website Comparison covers Rentals.ca, Zumper/PadMapper, Facebook Marketplace, Kijiji, Craigslist, and REALTOR.ca, and How to Choose Housing, Short-Term Rentals, and Hotels in Canada breaks things down by hotel, short-term rental, monthly suite, and student housing. This article focuses specifically on the short-stay/short-term-rental segment — platform fees plus accommodation taxes — as a complement to those, not a repeat.
| Platform | Positioning | Best for | Fee structure | Pros | Watch out for |
|---|---|---|---|---|---|
| Airbnb | Mostly entire apartments and unique stays | 1 night and up, monthly discounts available | Host fee up to roughly 15.5% (a single-fee model most hosts moved to starting April 2026); guests pay an additional service fee, commonly adding 14–16% combined | Largest selection, mature review system, room to negotiate on monthly stays | Short-term rentals in popular cities are subject to local bylaws (see the Vancouver/Toronto sections below); factor cleaning and service fees into the total before booking |
| Vrbo | Mostly whole houses, family travel | 1 night and up | Host fee around 8% (5% commission + 3% payment processing); guest service fee roughly 6–15% | Lower host fees than Airbnb, good for larger units or groups | Fewer listings than Airbnb, especially for city apartments |
| Booking.com | Hotels plus some apartment-style stays | 1 night and up | Platform commission to hosts averages around 15% | Many free-cancellation options, good when your itinerary isn’t finalized | Apartment-style inventory isn’t as deep as Airbnb/Vrbo; still leans hotel-first |
| Blueground / Corporate Stays | Furnished, move-in-ready monthly apartments | Usually 30 nights minimum | All-inclusive monthly rate (utilities and internet typically included), no platform fee for guests | Consistent quality, no long lease commitment — good for relocation or business travel | Priced above regular long-term rentals; makes sense for 1–6 months, not long-term living |
How US and Canada accommodation taxes actually stack up — there’s no single national rate
Whether you’re booking in the US or Canada, the checkout total usually layers 2 to 4 different taxes: federal consumption tax, provincial or state tax, plus an additional accommodation/tourist tax from the city or tourism authority. These extra taxes generally only apply to short stays, with a cutoff based on number of nights — cross the threshold and you stop paying.
Canada — federal and provincial taxes
| Region | Federal/provincial tax | Extra accommodation tax | Short-stay threshold |
|---|---|---|---|
| British Columbia (incl. Vancouver) | 5% GST + 8% PST | Varies by area, up to 3% MRDT (Municipal and Regional District Tax); Vancouver adds an extra 2.5% “Major Events MRDT” (through January 31, 2030, to help cover costs of hosting the World Cup and similar events) | Applies to stays under 30 consecutive nights |
| Ontario (incl. Toronto) | 13% HST | Toronto’s Municipal Accommodation Tax (MAT) is currently 8.5% (temporarily raised from June 1, 2025 to July 31, 2026 for the World Cup; reverts to the standard 6% on August 1, 2026) | MAT only applies under 28 consecutive nights; 28+ nights is exempt |
| Quebec | 5% GST + 9.975% QST | Some cities add their own tourist tax | Provincial rules generally apply under 31 days |
| Other BC cities (e.g. Kelowna, Whistler) | 5% GST + 8% PST | Local MRDT up to 3%, varies by city — check the MRDT area map for the exact rate | Same as BC’s general rule |
United States — a patchwork of state and local taxes
There’s no single national accommodation tax in the US — state tax, city tax, and sometimes a flat per-night fee can all stack together, and the totals vary a lot by city:
| City/region | Approx. combined tax rate | Notes |
|---|---|---|
| Hawaii | Around 11% (state) plus local taxes, totaling close to 19% | State rate rose from 10.25% to 11% in 2026 |
| New York City | Around 14.75% plus a flat $3.50 per room per night | State tax, city tax, and city occupancy tax stack together |
| Washington, D.C. | Around 15.95% | Among the highest in the country |
| San Diego, CA | Around 11.75–13.75% (varies by zone) | Rates continue to rise in 2026 |
What this means practically: if your Vancouver booking falls within 30 nights, you’re stacking GST + PST + MRDT (plus Vancouver’s extra 2.5%) — government taxes alone come out to roughly 18% of the booking price, and once you add platform service fees, total costs run well above the listed room rate. In Toronto, the number to watch is 28 nights — booking 28 nights versus 29 can mean the difference between paying or not paying that 8.5% MAT on the entire stay.
Vancouver tightened its short-term rental rules after an October 2024 bylaw update: the definition of “short-term rental” was expanded from “under 30 nights” to “under 90 consecutive nights,” and short-term hosts can now only register a listing at their principal residence — investment condos can no longer be rented out as full entire-home Airbnbs. As a result, whole-apartment Airbnb inventory has shrunk compared to before, and availability gets tighter during peak months. In practice: for 1–13 night stays (business trips, watching games, short vacations), hotels or Airbnb/Vrbo listings displaying valid registration (a city business licence number plus a provincial registration number) are fine — always check that both numbers are shown before booking. For a 2-week to 3-month transitional stay, Blueground or Corporate Stays are the most stable option in Vancouver, since they’re designed around a 30-night-plus minimum and don’t run into short-term licensing disputes. For anything beyond 3 months — studying, working, or settling in as a new immigrant — go with a formal BC residential tenancy agreement, which is protected under BC Residential Tenancy Branch rules and has nothing to do with short-term tax or licensing at all.
Toronto works differently. The key factor isn’t principal residence — it’s the registration fee plus the 28-night tax threshold. Short-term rental operators must pay a $375 registration fee (2026 rate) and display their registration number, and listings are supposed to show it too. For 1–13 nights, Airbnb, Vrbo, and Booking.com all work fine — the checkout total will reflect 13% HST plus 8.5% MAT (through July 31, 2026), so compare the tax-included total rather than just the nightly rate. For a 2-week-to-1-month stay with some flexibility, stretching the booking to 28+ nights eliminates the MAT entirely — saving close to 10% of the total — this is the most commonly overlooked money-saving trick in Toronto. If you’re staying under 28 nights, furnished monthly options from Blueground or Corporate Stays are usually priced by the month rather than per night, so it’s worth comparing them against Airbnb’s monthly listings too. Beyond a month, Toronto’s long-term rental market is well established — sign a lease and you’re covered under Ontario’s residential tenancy rules, with no short-term tax or registration issues.
Beyond Vancouver and Toronto, cities like Montreal, Calgary, and Ottawa follow similar short-term rental licensing and accommodation tax logic — just with different rates and night thresholds. Before booking, search the city name plus “short-term rental bylaw” and “municipal accommodation tax” to check the official page directly rather than assuming another city’s rules apply. Resort towns like Whistler and Kelowna generally charge a 3% MRDT, and inventory in peak season (ski season, event weekends) fills up fast, so book 1–2 months ahead if you can.
Before booking, it’s worth running through this checklist: does the length of stay fall on the short-term or long-term side of the threshold (90 nights in Vancouver, 28 in Toronto)? Does the listing display a valid registration/licence number? What’s the tax-included total at checkout, not just the room rate? Is free cancellation available, which matters if your plans aren’t finalized? And if the stay is over a month, would a monthly rental or long-term lease actually work out cheaper than booking night by night?
Frequently Asked Questions
Is Airbnb always more expensive than a hotel?
Not necessarily. For a short stay of a few nights, Airbnb’s cleaning and service fees often add up to about the same as — or more than — a comparable hotel. But for monthly stays or group travel, an entire-home Airbnb or Vrbo listing usually works out cheaper on average than a hotel.
Does booking exactly 28 nights in Toronto make it MAT-exempt?
The rule is “28 consecutive nights or more” is exempt from MAT. In practice, platforms and hosts determine this by whether the booking reaches or exceeds 28 nights — it’s best to confirm directly at checkout that the tax line shows $0 rather than calculating it yourself.
Where can guests verify a Vancouver short-term rental licence number?
The City of Vancouver’s website has a short-term rental licensing section where you can look up issued business licences. If you have doubts about a listing’s legitimacy, you can cross-check the number shown on the listing there.
Which platforms should new immigrants or students use first, before finding a permanent place?
Most people start with a monthly listing on Airbnb or Vrbo, or a Blueground/Corporate Stays unit, to cover the first month after landing, while using long-term platforms like Zumper, PadMapper, or Facebook groups (covered in our rental website comparison) to find a permanent place. Confirm the city and commute range first, then sign a formal lease — don’t sign a long-term lease from overseas before arriving, since that’s a common scam pattern.
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