Hotel Tax Calculator Ontario

Ontario's hotel tax system can be complex, with different rates applying to different types of accommodations and taxable periods. This calculator helps you determine the hotel tax owed based on your specific situation.

How to Use This Calculator

To calculate your Ontario hotel tax:

Enter the total taxable revenue from your hotel operations
Select the type of accommodation (hotel, motel, or other)
Choose the taxable period (monthly or quarterly)
Click "Calculate" to see your estimated tax liability

The calculator will show you the tax amount due and provide a breakdown of the calculation.

Ontario Hotel Tax Rates

Ontario's hotel tax rates vary based on the type of accommodation and the taxable period. The current rates are:

Current Hotel Tax Rates (2023)

Hotels: 12% of taxable revenue (monthly) or 11.5% (quarterly)
Motel rooms: 12% of taxable revenue (monthly) or 11.5% (quarterly)
Other accommodations: 12% of taxable revenue (monthly) or 11.5% (quarterly)

Taxable revenue is calculated as the gross amount received from guests, minus any exemptions or deductions allowed under the Ontario Hotel Tax Act.

How to Calculate Hotel Taxes

The basic formula for calculating Ontario hotel tax is:

Hotel Tax = Taxable Revenue × Tax Rate

Where:

Taxable Revenue = Gross Revenue - Exemptions
Tax Rate = 12% for monthly reporting or 11.5% for quarterly reporting

Common exemptions include:

Food and beverage sales
Certain types of room service
Gratuities

Worked Examples

Example 1: Monthly Reporting

For a hotel with $50,000 in taxable revenue:

Hotel Tax = $50,000 × 12% = $6,000

Example 2: Quarterly Reporting

For a motel with $150,000 in taxable revenue:

Hotel Tax = $150,000 × 11.5% = $17,250

Frequently Asked Questions

What is the difference between monthly and quarterly reporting?

Monthly reporting uses a 12% tax rate, while quarterly reporting uses an 11.5% rate. Quarterly reporting allows you to pay less tax overall, but you must file and pay taxes every three months.

What counts as taxable revenue?

Taxable revenue is the gross amount received from guests, minus any exemptions such as food and beverage sales, certain room service items, and gratuities.

When is the hotel tax due?

For monthly reporting, the tax is due on the 20th day of the following month. For quarterly reporting, it's due 30 days after the end of the quarter.

Can I deduct any expenses from my taxable revenue?

Yes, you can deduct certain expenses such as property taxes, insurance, and maintenance costs from your taxable revenue. Consult the Ontario Hotel Tax Act for a complete list of allowable deductions.