alberta tourism tax

Canada: Alberta Tourism Levy

The following is information for temporary accommodation providers (short term rental providers) in Alberta about collecting and remitting the tourism levy.

Effective April 1, 2021, changes to the Alberta Tourism Levy Act will be implemented. These changes include the  extension of the tourism levy to short-term rentals offered through online marketplaces  (e.g., Airbnb, Vrbo, Expedia, etc.) booked by purchasers on or after April 1, 2021.

The tourism levy is 4% of the purchase price of the accommodation.

This includes any unit of accommodation provided in Alberta, including stays in residential units.

Who remits the tourism levy

The tourism levy is collected and remitted to Alberta Tax and Revenue Administration (TRA) by temporary accommodation providers in Alberta, including an:

Operator:  a person who sells, offers for sale, or otherwise provides accommodation in Alberta, but does not include an online broker.

Accommodation Host:  an operator that sells, offers for sale, or otherwise provides temporary accommodation of a residential unit in Alberta.

Online Broker : an operator of an online marketplace.

Accommodations excluded or exempt from the tourism levy

The levy does not apply to:

• Rooms occupied continuously for 28 days or more by the same individual
• the purchase price for the unit of lodging is less than $30 per day or $210 per week; or
• the person's gross revenue from the provision of lodging in Alberta in the previous 12 months was less than $5,000; and
• the gross revenue in the next 12 months is reasonably estimated to be less than $5,000
• Social care facilities, nursing homes, or hospitals
• Licensed supportive living accommodation
• Accommodation provided on a reserve in Alberta to a person or entity exempt from tax under the federal Indian Act
• The Government of Canada (direct billing)
• Members of the diplomatic or consular corps

You must register for the Tourism Levy program if you provide temporary accommodation in Alberta. Review the steps for how to register your account, file your return, and pay  here .

10 Tips: How to Report the Tourism Levy

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Economic Impact

Tourism Related GDP and Taxes

This dashboard measures the total economic impact of Alberta’s tourism industry on the overall economy including the direct, indirect and induced impacts. 

The direct impact of tourism includes tourism GDP, full-time employment, and tax revenue resulting from tourism spending. 

Indirect impact shows how tourism spending trickles down as tourism businesses purchase goods and services from supporting businesses, including the employment and tax revenues from those businesses.

Induced impacts are the broader results of increased spend in a region, caused by the direct and indirect effects of tourism. Businesses with increased revenue from direct and indirect economic tourism effects can spend more on labour, resulting in more household income available to spend on goods and services within the community. This shows how tourism growth leads to overall economic and community well-being.

Tourism-related taxes are the total sales taxes (GST) and income tax resulting from direct, indirect and induced effects of tourism, as well as levy collection.

How-to use this information

Our Tourism Indicator dashboards hold a wealth of information about the tourism market and make predictions for the coming year. You can filter and sort the information, so be sure to customize them to your interests.

Understanding Tourism Indicators

Active Tourism Businesses are businesses that have reported having one or more employees in any given month. The number of active tourism businesses is an indicator of tourism’s recovery and growth in Alberta. 

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Alberta Tourism Levy and Online Marketplaces

Tax Development Apr 01, 2021

Taxpayers are reminded that effective April 1, 2021, the Alberta Tourism Levy applies to short-term rentals purchased through online marketplaces. Alberta has released a transitional rule, under which the levy does not apply to the purchase of a short-term rental booked through an online marketplace prior to April 1, 2021. However, reservations for all short-term rentals made on or after April 1, 2021 will be subject to the levy, unless the rental qualifies for exemption. Note that the transitional rule for supplies of short-term rentals through online marketplaces is based on the booking date, rather than the reservation date (i.e., when the accommodation will be used).  

The province recently released and/or updated several publications regarding other changes to the Alberta Tourism Levy introduced in this year’s budget, including the:

• ability of online marketplace suppliers of short-term rental properties to register for and collect the levy;
• elimination of the previous exemption for short-term rentals with less than four bedrooms; and
• introduction of an exemption for short-term rental properties not listed with an online marketplace and with annual gross revenues under $5,000, or a rental rate less than $30 per day or $210 per week.

Further details regarding these changes, which took effect on April 1, 2021, may be found in the following publications:

• Special Notice, Vol. 7, No. 13, Transitional Rule for Tourism Levy on Accommodation Purchased Through an Online Marketplace
• Special Notice, Vol. 7, No. 12, Providing Accommodation Through an Online Broker
• Information Circular TL-2R6, Information for Operators and Online Brokers

Alberta government to add tourism levy to short-term rentals

Details to be included in thursday's provincial budget.

Social Sharing

Renting an Airbnb or VRBO in Alberta will soon be more expensive.

The Alberta government plans to introduce details this week about extending its tourism levy to short-term rentals like Airbnb and VRBO.

A government spokesperson confirmed that details of the levy will be announced in Thursday's budget, but declined to provide further information citing budget confidentiality. 

The levy adds a four-per-cent charge to any rental under 28 days, though most short-term rentals aren't included under the current guidelines. 

Though specifics aren't outlined, the change is mentioned in the government's 2019-23 Fiscal Plan . According to the plan, the tourism levy change is expected to generate about $5 million in 2020-21. The tax will be charged through the service used to book the rental. 

Edmonton residents urge city to crack down on short-term rentals

Currently, most short-term rentals are exempt, as only establishments with more than three bedrooms that can be rented separately are subject to the levy. 

The government's fiscal plan said the levy was not designed with short-term rentals in mind and "gives these operators an unfair advantage over hotels and other accommodation providers that are subject to the levy."

The Alberta Hotel and Lodge Association has applauded the move as an important step in levelling the playing field 

Other jurisdictions

If enacted, Alberta won't be the first province to tax short-term rentals. Both British Columbia and Quebec have taxes that are charged through platforms like Airbnb.

In Quebec, guests pay a 3.5-per-cent lodging tax on the cost of the listing for any reservation under 31 nights. 

Hoteliers urge federal candidates to tax Airbnb hosts

In B.C., there is a eight-per-cent provincial sales tax (PST) for the listing price (including cleaning fees) for reservations 26 nights and shorter. A municipal and regional district tax (MRDT) of two to three per cent is also applied. 

• Airbnb remits almost $43M in taxes earmarked for housing and tourism initiatives in B.C.

On a municipal level, several cities in Ontario apply a municipal accommodation tax of four per cent to short-term rental reservations, among them: Barrie, Brockville, Greater Sudbury, Mississauga, Ottawa, Kitchener and Windsor.  

Some Alberta cities have also begun to regulate short-term rentals. Both Calgary and Edmonton require short-term rental hosts to have a business licence to operate in the city.

'Pay our fair share'

Airbnb said it has been working with the provincial government on the addition of the tourism levy and the company hasn't been negatively affected by taxes in Quebec and B.C. 

"We're proud to pay our fair share and help to promote the tourist economy," said Nathan Rotman, Airbnb Canada's deputy director of public policy.

According to Airbnb, there are about 12,000 listings in Alberta including rooms in homes, entire home listings, boutique hotels and traditional B&Bs. 

Rotman said he didn't have the details on Alberta's plan for the tourism levy, but said B.C.'s model has been a "very successful tool to help promote the tourist economy in that province."

Airbnb's provincial and municipal tax collection in B.C. was almost double what was expected and generated $42.9 million in one year, with $33.7 million of that coming from PST and the other $9.2 million from municipal and regional district tax.

'Catching up with other provinces'

Dave Kaiser, president and CEO of the Alberta Hotel and Lodge Association (AHLA), said extending the tourism levy to short-term rentals has been a long time coming.

"It's been a file we've been working on for several years and couldn't get any traction with previous governments here in Alberta. We're happy that it's finally happening, and in reality I think Alberta is catching up with some of the other provinces."

'Not playing by the same rules': Edmonton hoteliers want more regulation on short-term rentals

The AHLA provided input to the government about the tourism levy change and gave several recommendations. The association wants the restriction about the number of rooms removed and wants online platforms to collect and remit the levy on behalf of the properties. It also wants data collected from online platforms shared with municipalities. 

Kaiser said the the AHLA has other recommendations for the regulation of short-term rentals, including one significant change federally: GST.

"Without GST and without a tourism levy, someone who is operating a short-term rental has a nine per cent tax advantage or price advantage on hotels."

With files from Andrea Huncar

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Alberta tourism tax.

The Alberta Tourism tax applies to Accommodations on all Alberta hotel stays.

Calgary hotels charge a tourism levy, calculated as 4% of your total accommodation charges. The levy is remitted to the Alberta Tax and Revenue Administration (TRA) by temporary accommodation providers in Alberta.

The levy does not apply if you occupy the same room continuously for 28 days or more.

More information regarding the Alberta Tourism Levy can be found on the Government of Alberta website ( https://www.alberta.ca/tourism-levy.aspx ) and the Alberta Hotel and Lodging Association website ( https://www.ahla.ca/resources/accommodation-legislation/tourism-levy-act/ ).

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Calgary is home to and adjacent to several world-renowned Provincial Parks, including Bow Valley Provincial Park, Bragg Creek Provincial Park, Carseland Provincial Park, Dinosaur Provincial Park, Fish Creek Provincial Park, and Nose Hill Provincial Park.

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Albertans to spend more at the pump and on a pint starting Monday

By Dione Wearmouth and Phil Wood

Posted Apr 1, 2024 8:25 am.

Last Updated Apr 1, 2024 6:42 pm.

Alberta’s provincial fuel tax increase comes into effect Monday morning — pushing the cost per litre from nine cents to 13 cents. But, that’s not the only increase hitting the wallets of Calgary drivers, as the federal carbon tax is increasing to 17.6 cents a litre, or 24 per cent.

The carbon tax increase has long been criticized by Premier Danielle Smith, and that criticism is materializing in the form of a protest Monday morning south of Cochrane .

The rally is happening near the intersection of Highway 1 at Highway 22, in an effort to “overturn the tax through peaceful protests.”

Organizers say they intend to leave at least one centre lane open to traffic during the events.

RELATED CONTENT: Critics call out Alberta and federal governments for upcoming gas tax increases

In a statement, Cochrane RCMP have advised drivers of possible delays or disruptions on Highway 1 west of Cochrane and are suggesting other routes be taken if possible.

It says RCMP and partner organizations will work to ensure the impact on travelers is minimized to make sure disruptions don’t affect public safety.

The event is just one of many supposedly planned across the country Monday.

The Canadian Taxpayers’ Federation expects the increase will cost Alberta families an extra $911 this year, but Prime Minister Justin Trudeau recently justified the tax, saying Conservative premiers across Canada are “misleading Canadians” about the tax.

“Eight out of 10 families across the country in federal backstop jurisdictions make more money with the Canada Carbon Rebate than it costs with the price on pollution,” Trudeau said.

At the same time, the provincial fuel tax is going up which, earlier this month, Minister of Finance Nate Horner said will increase revenue by $1.4 billion over the next year.

WATCH: Calgarians queue up to get cheaper gas ahead of the double tax hike on April 1

Here in Calgary, many drivers rushed to the pumps over the weekend to avoid the increase, and most told CityNews that no matter how you justify it, it’s still hard to hear.

Smith took that message to the feds last week, speaking virtually in the House of Commons, where she called the increase “inhumane,” even as her government moves to increase the provincial gas tax at the same time.

READ MORE: Danielle Smith urges feds to scrap ‘inhumane’ carbon tax hike at House committee

“Albertans and all Canadians, need common sense, compassion, and responsible government to prevail,” she said. “That’s why I’m urging you today, to heed the calls of Canadians across the country and suspend the increase to the carbon tax on April 1.”

Early Monday morning, GasBuddy.com showed a range of prices for gas in Calgary, with the lowest at 145.9 cents/litre, and the highest at 154.9 cents/litre.

Alcohol tax increase also coming April 1

Gas isn’t the only thing getting more expensive Monday, so are your favourite wines, beers, and spirits.

The increase to Canada’s alcohol excise tax amounts to two per cent, lower than the first expected 6.3 percent, which would have been the biggest hike in almost a decade.

But, it ends up costing nearly a quarter of the price on a 24-pack of beer.

The tax is typically adjusted every year to match the rate of inflation, though federal Minister of Finance Chrystia Freeland has previously announced the increase would be capped at two per cent per year until 2026.

The Alberta Hospitality Association is calling for the feds to abandon the tax hike.

WATCH: Alcohol taxes go up, small businesses worried

Ruhee Ismail-Teja, the director of communications at Calgary’s Chamber of Commerce, says the tax adds insult to injury.

“Everything from the cost of labour, from property tax, obviously supply chains continue to be an issue, inflation, interest rates, supply chains,” she said. “We really see that businesses are repeatedly getting hit.”

Consumers won’t necessarily see the increases on their receipt, as the tax will be imposed at the manufacturing level.

However, Dan Allard with the Cold Garden Beverage Company, believes the added costs will impact bars, restaurants, and breweries that aren’t as busy as his business.

He expects his bills could increase roughly $300 a month.

“To some people listening to this right now, that might seem like it’s nothing — you know, it’s peanuts, 300 bucks a month, it’s a drop in the bucket — if you’re busy and if you’re not, that could mean you’re closing the doors,” Allard explained. “It should be something where we want to feel good about donating money to the government so they can be doing better services, but if it’s at the expense of businesses, we’ve go to toe that line a bit.

Plan to pay more to park at Alberta Health Services’ facilities

On average, daily rates will go up by $0.75 in large markets such as Calgary, and $0.50 in smaller markets.

Alberta Health Services (AHS) says monthly and weekly parking passes are available to patients and visitors at rates well below market value.

-With files from The Canadian Press and Henna Saeed

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