The Township of Lake of Bays launched a 4% Municipal Accommodation Tax on January 1, 2026. It is filed quarterly, and Airbnb does not collect it for you, so the responsibility is yours.
Here is how the new tax works and how to file it.
New for 2026
Lake of Bays Council passed the MAT under By-law 2025-139, effective January 1, 2026, at 4% of the accommodation cost. One helpful transition rule: reservations made before January 1, 2026 are not subject to the tax, even if the stay happens in 2026.
Airbnb Does Not Collect It
The Rate and What It Applies To
The rate is 4% of the accommodation cost, applied to hotels, motels, bed and breakfasts, and licensed short-term rentals offering stays of less than 30 continuous days. The MAT must appear as a separate charge on the accommodation portion of each guest invoice. HST is also payable on the MAT portion. Note that a valid short-term rental licence is required to operate; the Township states that renting without one is unlawful.
How to File and Pay
Lake of Bays uses a single online form for both filing and payment.
Open the remittance form
Go to the Township's Municipal Accommodation Tax Quarterly Remittance Form on its webforms site.
Enter your numbers
Provide your contact details, the reporting period, your total accommodation revenue subject to MAT, and the tax payable, then complete the attestation.
Choose a payment option
Pay securely online by major credit card at the end of the form, or pay in person (cash, debit, cheque, or money order) at the Municipal Office, or mail a cheque, certified cheque, or money order payable to The Township of Lake of Bays, Attn: Finance Department, 1012 Dwight Beach Road, Dwight, ON P0A 1H0.
To clear an outstanding balance, file the overdue quarter on the same form and pay by one of the methods above.
Deadlines
Lake of Bays MAT is filed and remitted quarterly:
| Quarter | Period | Due |
|---|---|---|
| Q1 | January 1 to March 31 | April 30 |
| Q2 | April 1 to June 30 | July 31 |
| Q3 | July 1 to September 30 | October 31 |
| Q4 | October 1 to December 31 | January 31 |
Exemptions
The tax applies to stays of less than 30 continuous days, so longer continuous stays fall outside it. Reservations booked before January 1, 2026 are also not subject to the tax.
Penalties for Late Filing
A penalty of 1.25% of the unpaid MAT applies if the tax is not paid by the due date, charged from the first day due and on the first day of each following month until paid in full. Non-compliance may also be subject to administrative penalties and interest at 1.25% per month.
Frequently Asked Questions
When did Lake of Bays start charging MAT?
January 1, 2026, under By-law 2025-139, at 4% of the accommodation cost. Reservations made before January 1, 2026 are not subject to the tax, even if the stay occurs in 2026.
Does Airbnb collect MAT for Lake of Bays?
No. The Township states plainly that Airbnb does not collect the MAT on behalf of Lake of Bays hosts. You are responsible for collecting and remitting 4% on all qualifying bookings, filed quarterly.
How do I file and pay Lake of Bays MAT?
Use the Township's Municipal Accommodation Tax Quarterly Remittance Form online. You can pay by credit card at the end of the form, in person by cash, debit, cheque, or money order at the Municipal Office, or by mailing a cheque payable to The Township of Lake of Bays.
When is Lake of Bays MAT due?
Quarterly: April 30, July 31, October 31, and January 31 for the preceding quarter.
Does HST apply to the MAT?
Yes. The Township states that HST is payable on the MAT portion of the guest invoice, and the MAT must be shown as a separate charge on the accommodation portion.
This article is for informational purposes only and does not constitute legal or tax advice. Municipal tax rules change frequently. Always verify current requirements and deadlines directly with the municipality before filing.
Official Resources
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