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Niagara Falls Changes Municipal Accommodation Tax to Flat 4% Rate, Mandates New ORHMA Online Portal for Remittances
The City of Niagara Falls has changed the Municipal Accommodation Tax (MAT) structure from a star-based model to a flat 4% rate, effective April 1, 2026. The City has retained the Ontario Restaurant Hotel Motel Association (ORHMA) to administer MAT collection services.
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What changed
The City of Niagara Falls has replaced its star-based Municipal Accommodation Tax (MAT) model with a flat 4% rate, effective April 1, 2026. The city has retained the Ontario Restaurant Hotel Motel Association (ORHMA) to administer MAT collection services. Starting June 1, 2026, all tax remittances for overnight accommodations occurring on or after that date must be submitted through a new ORHMA-administered online portal. Remittances for stays on or before May 31, 2026, may continue to be submitted to the City through the current process. The city and ORHMA will host hybrid information sessions on June 3 and June 9, 2026, to provide an overview of the updated MAT process and timelines.
Why a business should care
This shift alters how hospitality operators remit local taxes. A flat 4% rate simplifies the calculation but requires updates to payment systems for the new portal. Operators must distinguish between pre-June and post-June stays to avoid remittance errors.
Who it affects
Accommodation providers operating within the City of Niagara Falls, including hotels, motels, inns, bed and breakfasts, vacation rental units, and owner-occupied short-term rentals.
What to consider doing
Update your payment and accounting software to apply the flat 4% MAT rate to all applicable bookings. Contact ORHMA directly for information regarding the new online portal and remittance process.
Uncertainty and risks
The transition period requires careful tracking of stay dates to determine which submission process applies. Operators must ensure their systems distinguish between pre-June and post-June stays to avoid remittance errors. The city and ORHMA will provide guidance during the June information sessions, but early system updates are necessary to avoid last-minute compliance gaps.
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