Credit card processing and merchant services in Markham, ON
Markham's accommodation tax rose from 4% to 6% on April 1, 2026, and Visa's small business threshold jumps to $750,000 on October 24. Both affect what Markham businesses should see on their bills.
One rate changed for Markham hotels on April 1, 2026, and another changes for almost every Markham business on October 24.
The first is the accommodation tax. The City of Markham has charged a Municipal Accommodation Tax since January 1, 2019, under By-law 2018-116. For 2026, the City set it at 4% from January 1 to March 31 and 6% from April 1 to December 31. It applies to the purchase price of the room portion of the accommodation, for continuous stays of 29 consecutive nights or less. If your property management system still charges 4%, it has been using the wrong rate since April.
The second is Visa's small business threshold. Since October 19, 2024, Visa has charged lower interchange to small businesses with under $300,000 in annual Visa sales. On October 24, 2026, that threshold rises to $750,000, so a Markham retailer or clinic doing, say, $500,000 a year in Visa sales may qualify for the first time. Mastercard's threshold is $175,000 in annual Mastercard sales.
Whether you see the saving depends on how you're priced. On interchange-plus, interchange passes through at cost, so a lower rate shows up as a smaller bill. A flat-rate provider can keep the difference.
Surcharges on Visa and Mastercard credit cards are allowed in Ontario, but never above 2.4% or above your own cost of acceptance. If your costs drop after October 24, the most you're allowed to surcharge may drop with them.
Markham counted 338,503 residents at the 2021 Census, up 2.9% from 2016. Send a statement for a free statement review and we'll check which of these changes reach you. The Ontario page has the provincial rules.
Rules that matter in Markham
Markham's Municipal Accommodation Tax in 2026
The City of Markham has charged a Municipal Accommodation Tax since January 1, 2019, under By-law 2018-116. In 2026 the rate is 4% from January 1 to March 31 and 6% from April 1 to December 31. It's payable on the purchase price of the room portion of the accommodation, for continuous stays of 29 consecutive nights or less.
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Common questions
What is Markham's Municipal Accommodation Tax rate in 2026?
6% from April 1 to December 31, 2026, after 4% from January 1 to March 31. The City of Markham applies it to the purchase price of the room portion of the accommodation for continuous stays of 29 consecutive nights or less, so set it as its own line on the room charge.
Does the MAT apply to a guest staying a month in Markham?
Not if the stay runs longer than 29 consecutive nights. The City of Markham applies its Municipal Accommodation Tax to continuous stays of 29 consecutive nights or less, so a 30-night corporate booking falls outside it. Make sure your booking engine doesn't add the tax to long stays.
Will Visa's October 24, 2026 change lower my Markham business's card fees?
It may, if your annual Visa sales fall between $300,000 and $750,000. That's the range newly eligible for Visa's lower small business interchange when the threshold rises on October 24, 2026. You'll only see the saving if your pricing passes interchange through at cost. Our free statement review checks that for you.
Do I charge HST on a credit card surcharge in Markham?
Generally not, if it's shown and charged separately. Under CRA's info sheet GI-200, a credit card surcharge charged separately is consideration for a financial service, and financial services carry no GST or HST. Surcharging is allowed in Ontario within Visa and Mastercard's limits, and our surcharging program handles the setup.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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