Credit card processing and merchant services in Toronto, ON
Toronto's accommodation tax dropped back to 6% this summer, and Ontario's $4 prepared-food rebate changes what a café till should charge. We help Toronto merchants get receipt totals right and pay less to accept cards.
Toronto's hotels and short-term rentals got a tax change this summer. The City's temporary 8.5% Municipal Accommodation Tax ended on August 1, 2026, and the rate is back to 6%. HST applies on top of it: the city's own example shows $6 of MAT and $13.78 of HST on a $100 stay. If your booking engine or front desk terminal still carries 8.5%, change it before the next guest checks out.
Food counters have a different detail. Ontario rebates the 8% provincial part of the HST on qualifying prepared food and drinks when the order comes to $4 or less before tax, so a $3 coffee carries the 5% GST and nothing more. One cent over $4 and the full 13% applies to the order.
Surcharging is legal in Toronto, as it is across Ontario, within Visa and Mastercard's caps. Whether it's smart is a separate question. A 2.4% fee on a $300 dinner for four is $7.20, and that's the number your guests see at the bottom of the bill. You can surcharge, or raise menu prices slightly and skip the conversation. Both are legal here.
We price on interchange-plus, so you can see what each card type costs you before you decide anything. A free statement review is the quickest way to find out what you're paying now, and our Ontario page covers the rules that apply outside the city too.
Rules that matter in Toronto
Toronto's 6% Municipal Accommodation Tax
Hotels and short-term rental operators in Toronto collect a 6% Municipal Accommodation Tax (MAT). The temporary 8.5% rate ended on August 1, 2026, so check every system that calculates a guest's total.
HST is charged on the MAT as well as the room. The city's example for a $100 short-term rental shows $6 of MAT and $13.78 of HST.
Sources: City of Toronto, Municipal Accommodation Tax (MAT): guests; City of Toronto, Short-Term Rental Municipal Accommodation Tax
Payment services we provide
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Common questions
What is Toronto's Municipal Accommodation Tax rate now?
6%. The City of Toronto's temporary 8.5% rate ended on August 1, 2026, so hotels and short-term rental operators are back to collecting 6% on stays. HST applies on top of the MAT: in the city's own example, a $100 stay carries $6 of MAT and $13.78 of HST.
Can a Toronto restaurant add a surcharge to credit card bills?
Yes, within Visa and Mastercard's rules: up to 2.4% or your cost of acceptance, whichever is lower, on credit cards only, after 30 days' notice and with signs at the entrance and the point of sale. The amount also has to appear on the receipt. Debit cards, including Visa and Mastercard debit, can't be surcharged.
Why does my café's POS charge 13% on a small coffee?
Usually because the item isn't set up for Ontario's point-of-sale rebate. When qualifying prepared food and drinks total $4 or less before tax, the 8% provincial part of the HST is rebated at the till, leaving 5%. Put those items in their own tax category and test a $3 order before your morning rush.
How do I know if I'm overpaying for card processing in Toronto?
Divide your total monthly processing fees by your card sales to get your effective rate, then compare it with what interchange alone should cost for your mix of cards. Our free statement review does that for you and flags fees worth questioning. Our guide to reading a merchant statement shows where to look.
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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