Credit card processing and merchant services in Vaughan, ON
In Vaughan, short-term rental hosts as well as hotels charge the 4% Municipal Accommodation Tax, so deposits, refunds and card fees all have to line up with it.
Vaughan grew 5.5% between the 2016 and 2021 censuses, to 323,103 residents, and its accommodation tax reaches past the hotel front desk. The City approved a 4% Municipal Accommodation Tax on hotels, lodges, bed and breakfasts and motels effective April 1, 2019. On September 1, 2020, it extended the tax to short-term rentals, including those booked through online home-sharing platforms. Short-term rental owners, and brokerages that collect payment on their behalf, must charge 4% on the cost of the rented accommodation and remit it to the City.
Not every stay is taxable. The City's FAQ exempts college and university dorm rooms, hospitals, long-term care facilities and shelters, along with rentals of less than four hours or more than 29 consecutive nights. A host renting a unit for 30 nights or longer shouldn't be adding the tax.
If you take bookings yourself, the card side needs some thought too. A deposit collected by payment link from our virtual terminal means the guest types in their own card number, and nobody copies it into an email. If you surcharge credit cards, which Ontario allows within Visa and Mastercard's 2.4% cap, Visa requires you to credit the surcharge back whenever you refund the purchase. A cancelled booking means refunding both.
Operators with units in more than one city need separate settings. Markham's rate, for example, has been 6% since April 1, 2026, while Vaughan's is 4%. Ontario's 13% HST applies in both.
Our pricing is interchange-plus, and you won't sign a long-term contract or pay a cancellation fee. A free statement review will show what your bookings cost to process, and the Ontario page covers the provincial rules.
Rules that matter in Vaughan
Vaughan's Municipal Accommodation Tax and short-term rentals
The City of Vaughan charges a 4% Municipal Accommodation Tax on hotels, lodges, bed and breakfasts and motels, effective April 1, 2019, and on short-term rentals, including online home-sharing platforms, since September 1, 2020. Short-term rental owners, and brokerages that collect payment for them, must charge it on the cost of the rented accommodation and remit it to the City.
The City's FAQ lists exemptions, including college and university dorm rooms, hospitals, long-term care facilities, shelters, and accommodation rented for less than four hours or more than 29 consecutive nights.
Sources: City of Vaughan, Municipal Accommodation Tax; City of Vaughan, Municipal Accommodation Tax (MAT): Frequently Asked Questions
Payment services we provide
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Common questions
Do short-term rental hosts in Vaughan have to charge the MAT?
Yes. Since September 1, 2020, the City of Vaughan has applied its 4% Municipal Accommodation Tax to short-term rentals, including those on online home-sharing platforms. Owners, and brokerages that collect payment for them, charge 4% on the cost of the rented accommodation and remit it to the City.
Which stays are exempt from Vaughan's accommodation tax?
The City's FAQ lists college and university dorm rooms, hospitals, long-term care facilities and shelters, plus accommodation rented for less than four hours or more than 29 consecutive nights. Set your booking system to skip the tax on long stays, and read the FAQ if your property doesn't fit neatly into a category.
If a guest cancels, do I refund the credit card surcharge too?
For Visa, yes. Visa Canada's surcharging FAQ says that in the event of a refund, the surcharge amount must be credited back to the cardholder. Build that into your cancellation process so a refunded booking returns the surcharge along with the deposit. Our guide to surcharging in Canada covers the other rules.
What's the safest way to take a booking deposit by card?
Send a payment link or invoice from a virtual terminal and let the guest enter their own card details. Card numbers then never sit in your inbox, text messages or notes, which keeps your PCI compliance simpler. Our guide to PCI compliance explains what that involves.
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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