HST on travel in Ontario depends on the purchase. Most domestic passenger transportation and short-term accommodation are taxable, but municipal transit is exempt. A qualifying international journey can be zero-rated. Accommodation rented for $20 or less per day of occupancy can be exempt; a hotel stay lasting a month is not automatically exempt. CRA: travel and convention industry
HST on travel in Ontario: start with the purchase
A transport ticket and a hotel room are classified separately. Keep the route and full itinerary for a journey, and the dates and daily price for a stay.
| Purchase | General GST/HST treatment |
|---|---|
| Municipal transit | Exempt. Most domestic ferry services are also exempt. |
| Domestic passenger transport | Generally taxable; the place of supply determines the rate, with exceptions for qualifying international journeys. |
| Qualifying international continuous journey | May be zero-rated; the itinerary and specific conditions matter. |
| Hotel room | Generally taxable, including many stays of one month or longer; the low-price and qualifying residential-complex exceptions are explained below. |
Ontario’s general HST rate is 13% for ordinary taxable supplies made in Ontario. See the CRA travel guide, our Ontario HST guide and place-of-supply guide.
How to read a transport fare
The CRA says municipal transit is exempt, as are most domestic ferry services. Most other domestic passenger transportation is taxable, with the applicable rate depending on the place of supply. A domestic leg may be zero-rated when it forms part of a qualifying continuous journey with an international element. CRA: passenger transport
For a concrete international example, the CRA describes a return air ticket from Halifax to Paris as zero-rated because the continuous journey includes a stopover outside the taxation area. That example does not mean every trip crossing a border is zero-rated: the itinerary and special rules matter. Keep the complete ticket, including connections, and ask the supplier to explain its classification.
What about a hotel or longer stay?
HST on hotels in Ontario generally applies: hotel rooms are taxable. There are two distinct accommodation exceptions in CRA’s guide:
- A residential unit rented for $20 or less per day of occupancy is exempt regardless of the rental period. CRA’s definition includes a hotel room occupied as a place of lodging under an appropriate arrangement.
- A residential complex or a unit in one rented for residence or lodging to the same individual for a continuous month or more is exempt. How often the charge is billed does not change that result if the individual has continuous use or possession of the same room for the required period.
Do not assume that any 30-day hotel booking is exempt. The CRA says a stay of one month or more at a hotel is generally taxable because most hotels are not residential complexes; some can qualify under the CRA’s detailed criteria. Ask the provider about the property’s status and keep the reservation and invoice. CRA: accommodation rules
If an invoice separately shows a municipal accommodation tax or other local charge, ask how it is calculated; it is not the same line as HST. Hosts can consult our short-term rental GST/HST guide for platform and registration questions.
What a Toronto hotel bill includes
The hotel tax Toronto guests pay is not HST alone. The City of Toronto’s Municipal Accommodation Tax (MAT) is 6% of the room portion of a stay of four hours or more and of 30 continuous days or less; charges billed separately, such as meeting-room rental, food and beverage, room service, internet or phone, are excluded from the MAT. HST then applies on top of both the room rate and the MAT — the City confirms HST is payable on the MAT portion, not only on the room charge. City of Toronto: MAT rates and exemptions
| Line | Amount |
|---|---|
| Room rate | $200.00 |
| Municipal Accommodation Tax (6% of room rate) | $12.00 |
| HST (13% of room rate + MAT) | $27.56 |
| Total (room + MAT + HST) | $239.56 |
An example when Ontario HST applies
Assume a $200 charge is confirmed to be an ordinary taxable Ontario supply and that 13% HST applies. The HST is $26, for a $226 total before considering any other separately applicable charges. The example does not decide whether a given accommodation, route or package meets those assumptions.
When a quote gives only a total, ask for the taxable amount, tax and other charges separately. A line-by-line explanation is more useful than applying 13% to an unexplained total.
Exempt and zero-rated are different
An exempt supply and a zero-rated supply do not have the same classification. CRA describes zero-rated supplies as taxable at 0%, whereas exempt supplies have no GST/HST applied. Determine which, if either, fits the particular travel transaction before drawing conclusions. CRA: type of supply; our classification guide explains the distinction.
Questions to ask the supplier
- What is the precise route or period of accommodation?
- What is included in the quoted price and what is billed separately?
- Which place-of-supply and classification rules were used?
- Does a longer stay, low price or international itinerary change the treatment?
- Is a separate local charge being shown, and how is it calculated?
Keep the itinerary, booking confirmation and invoice. If the supplier’s explanation and current CRA guidance do not resolve a complex itinerary, seek advice on the specific facts before treating the example above as your answer.
Frequently asked questions
Can visitors claim HST back?
No, not on an ordinary purchase or hotel stay. The CRA’s former Visitor Rebate Program for non-residents was cancelled effective April 1, 2007, and replaced by the Foreign Convention and Tour Incentive Program (FCTIP). FCTIP rebates are for sponsors and organizers of foreign conventions and for non-resident exhibitors at conventions held in Canada — an ordinary visitor cannot use FCTIP to reclaim tax on a personal hotel stay or personal travel. CRA: Foreign Convention and Tour Incentive Program
Does Canada have a travel tax?
HST or GST applies to taxable domestic fares and hotel rooms at the rate for the place of supply, a municipality can add its own charge on top — Toronto’s Municipal Accommodation Tax is one example — and airports add separate charges such as an Airport Improvement Fee. Toronto Pearson: airport fees