World Cup Tickets: Toronto is considering a temporary 2.5 percent hike to the city’s hotel tax to help cover the costs of co-hosting the FIFA World Cup in 2026, per a proposal released on Monday. The plan suggests that the Municipal Accommodation Tax, currently at six percent and paid by hotel and short-term rental guests, could be raised to 8.5 percent from June 2025 until July 2026, ending after the event.
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Speaking with reporters on Monday, Toronto Mayor Olivia Chow noted that with high-demand events like Taylor Swift’s concerts in November and the upcoming World Cup, hotels would continue to be busy.
“Hotels are doing quite well, all the rooms are booked. As you can imagine, they will do very well with the World Cup, and we’re asking them to support us,” she said.
The increase is expected to bring in $56.6 million toward FIFA-related costs and will be considered by the city’s FIFA Subcommittee on November 4 before moving to the city council for a vote. Alongside Vancouver, Toronto will host part of the 2026 FIFA World Cup, sharing the event with the United States and Mexico. Toronto’s share includes six matches.
Hosting costs are now estimated at $380 million, significantly up from the city’s original projection of $30 million to $45 million in 2018. With federal and provincial funding covering most expenses, Toronto is responsible for 47 percent of the total.
World Cup Tickets: Toronto Eyes Hotel Tax Increase for 2026 FIFA World Cup Funding
And while some costs will be met by existing revenue sources, the city still needs to cover an additional $95.1 million without impacting property taxpayers. Councillor Brad Bradford raised concerns about the tax increase, noting it would apply across the city, even to businesses far from the FIFA venue at BMO Field.
“If you’re a hotel operator out in Etobicoke, the mayor’s decision here immediately makes you less competitive,” he said.
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According to a city report from February, hosting the games could boost Toronto’s GDP by $392 million and Ontario’s by $456 million, as well as create around 3,500 local jobs. Bradford also expressed concerns about the tax becoming permanent, given the city’s yearly deficits.
“It’s unlikely that this ever comes off the books. I think those in the hotel sector and visitor economy are rightly concerned,” he added.
If approved, this would mark the second hotel tax increase since 2022. When the rate rose from four to six percent. Toronto is considering a temporary 2.5 percent increase to the city’s hotel tax to help cover the costs of co-hosting the FIFA World Cup in 2026. According to a proposal released Monday.
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The proposal suggests that the Municipal Accommodation Tax which is currently six percent. And applied to hotel and short-term rental guests, would rise to 8.5 percent from June 2025 until July 2026. Ending after the event. Mayor Olivia Chow highlighted that with major events like Taylor Swift’s concerts. And the World Cup is expected to draw large crowds, so hotels could contribute by paying their share.
“The hotels are doing quite well, all the rooms are booked,” Chow noted, emphasizing that they would likely benefit significantly from the World Cup.
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The increased tax is projected to generate $56.6 million for the city to offset FIFA-related expenses. The measure will first go before Toronto’s FIFA Subcommittee on November 4, followed by a city council vote. Toronto, along with Vancouver, will host Canada’s portion of the 2026 World Cup. Sharing responsibilities with the United States and Mexico. Toronto’s commitment includes hosting six matches.
The cost of hosting is now estimated at $380 million. A substantial increase from the city’s initial 2018 estimate of $30 to $45 million. With federal and provincial funds covering most expenses, Toronto is still responsible for 47 percent of the total. Although existing revenue streams will fund part of this, the city must still address. A $95.1 million gap without impacting property taxpayers.
FIFA 2026 Tickets: Toronto Considers Hotel Tax Increase to Fill Budget Gap
A city report from February projects that hosting the World Cup could contribute $392 million in GDP for Toronto. And $456 million for Ontario, in addition to creating approximately 3,500 local jobs. Toronto, with a population of 2.8 million in 2021. Canada’s largest city and the fourth most populous in North America.
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Today, the city is led by a popularly elected mayor and governed by the Toronto City Council. Comprising 25 councilors representing wards throughout the city. Toronto’s proposal to raise its hotel tax temporarily by 2.5 percent reflects. The city’s strategy to offset escalating costs from hosting the 2026 FIFA World Cup.
With hotel demand expected to surge, Mayor Olivia Chow sees this increase. As a necessary contribution from the hospitality sector. Anticipated to generate $56.6 million towards FIFA-related expenses. However, concerns arise over competitiveness, especially for hotels farther from the venue.
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