Pre-World Cup, host cities across North America are preparing for what is expected to be a massive influx of international visitors. Soccer fans from all four corners of the world have historically turned out in droves for these high-caliber matches. With them comes plenty of economic opportunities for governments and Airbnb hosts alike. Toronto is gearing up for the profits - and costs of earning them - by making some changes to its Municipal Accommodation Tax (MAT).
The Cost of the Cup
Major events like the World Cup have the potential to generate economic revenue of epic proportions. But with that opportunity comes a caveat: cost. Sure, it's a privilege to welcome the world's best soccer teams to your city and soak in some international attention. It's also a huge undertaking. From sports games to concert tours, accommodating more tourists than usual for any special occasion means committing to heavy upfront spending on security, infrastructure, and fan services.
Money Coming In From All Over
The 2026 World Cup's international draw provoked a national funding draw for Canada's host cities. The federal government agreed to give Toronto $104 million to prepare. Meanwhile, on the provincial level, Queen’s Park has pledged $97 million. The city must come up with the remaining $180 million in expected costs.
City costs have ballooned from an initial $30-45 million estimate in 2018 to nearly $380 million. The government's plan to pay for it comes straight from its tried-and-true playbook: taxes.
About Toronto’s MAT
For the uninitiated, Municipal Accommodation Tax (MAT) is a charge levied on short-term accommodation stays (typically under 28 days) that accommodation providers collect from guests and remit directly to the local municipality. It's meant to serve as a revenue source for tourism and city infrastructure development.
Toronto MAT Change Breakdown
Toronto's Municipal Accommodation Tax existed well before the 2026 World Cup confirmed the city would host games in 2025. Municipal lawmakers first proposed it in 2018 at a rate of 4%, applying to all short-term accommodations including hotels, motels, and platforms like Airbnb and Vrbo.
The tax was designed to generate revenue from Toronto's booming tourism industry while funding destination marketing and tourism infrastructure. For the first few years, the 4% rate remained stable, bringing in tens of millions annually that supported Tourism Toronto initiatives and city services tied to visitor activity.
The rate increased to 6% in 2024, when Taylor Swift’s visit to the 6ix and climbing anticipation for World Cup hosting costs prompted Mayor Olivia Chow to propose a temporary increase to 8.5%. After reviewing projections for tournament-related accommodation demand, council approved. This 2.5-percentage-point jump in the tax rate was hoped to be significant enough to generate substantial revenue during peak booking months without requiring permanent changes to the city's tax structure.
The increase is set to apply from early 2026 through the end of the tournament on July 31st, 2026, after which the rate is expected to revert to 4%, though council has left the door open for future adjustments based on fiscal needs.
New Rate: 8.5% on all revenue from stays (room rate + cleaning fees, excluding security deposits); previously 6%.
Duration: June 1, 2025 – July 31, 2026 (14 months covering prep, event, and wrap-up).
Collection Rules: Itemize as “Temporary MAT Increase – 2026 Major Sports Tournament” on guest invoices; remit directly to the city monthly.
Budgeting Impact for Airbnb Hosts
So, why should you care about this seemingly run-of-the-mill update to the Toronto Municipal Accommodation Tax? Because it will make a big impact on your finances for 2026.
On a $300/night listing booked 20 nights during peak World Cup weeks, the extra 2.5% MAT adds $150 in taxes you collect and remit.
The good news: this tax is collected from guests, not deducted from your earnings. Airbnb automatically adds it to the booking total, collects it at checkout, and remits it to the City of Toronto on your behalf. You don't need to manually calculate or submit payments. However, you should still track these amounts in your records, especially if you're managing multiple properties or filing quarterly tax returns. The MAT appears as a separate line item in your transaction history, so keep those statements organized for year-end accounting.
The bad news: higher total prices can affect booking psychology. A guest searching for a $300/night listing now sees a final price closer to $420 after the 8.5% MAT (up from 6%) plus cleaning fees and service charges. That pushes some listings into the next price bracket in search filters, potentially reducing visibility. While you're not losing money directly, you might see softer demand if you don't adjust your strategy. Some hosts counter this by slightly lowering their base nightly rate during World Cup weeks to keep the all-in price competitive, then making up the difference through minimum stay requirements or premium pricing on marquee match dates.
One critical point: if you're managing your property outside of Airbnb's platform—say, through direct bookings or another channel - you're responsible for collecting and remitting the MAT yourself. Miss a payment or underreport, and you're liable for penalties, interest, and potential audits. The City of Toronto has ramped up enforcement around major events, so this isn't the time to cut corners.
Toronto's change to the Municipal Accommodation Tax is just one of many reasons to ready your rental for 2026. Not every Airbnb host will, though - which is why staying informed is so important. As always, we're here to provide practical and actionable advice for this upcoming market disruption and everything else that might affect your booking calendar.
