What is Quebec Lodging Tax (TSH)?

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How it works

Operators of short-term rental properties in Quebec are required to register with Revenu Québec for the lodging tax. Once registered, they must collect the tax, calculated on the accommodation price, from every guest for each night of their stay.

The collected tax must then be reported and remitted to Revenu Québec on a prescribed schedule, which is typically quarterly or monthly depending on the total amount collected. Some property management software, such as a platform with robust tax features, can automate tax calculations and reporting to simplify compliance for hosts.

Note that online travel agencies (OTAs) that facilitate bookings may also be required to collect and remit the TSH on behalf of the host.

Why it matters

For vacation rental hosts, complying with TSH regulations is mandatory to operate legally and avoid penalties from Revenu Québec. This tax directly impacts pricing strategy, as it must be added to the guest's total bill, and clear communication about this charge is essential for guest transparency.

For the province and its various tourism regions, the TSH is a critical source of funding that supports tourism marketing, infrastructure development, and promotional activities, ultimately benefiting all tourism stakeholders, including rental operators.

Examples

• A host lists their Montreal loft on a major OTA. For a three-night stay, the platform's system automatically calculates and adds the 3.5% TSH to the guest's bill before checkout and then remits the tax directly to Revenu Québec.
• An owner of a ski chalet in the Laurentians takes a direct booking through their personal website. They must manually calculate the 3.5% TSH on the lodging portion of the invoice and add it to the final price. The owner is then personally responsible for remitting this amount to the government quarterly.
• A guest books a week-long stay at a cottage in Gaspésie. Their final invoice shows separate line items for the nightly rate, a cleaning fee, the 3.5% TSH calculated on the nightly rate, and finally the applicable GST/QST.
• A property manager overseeing ten rural properties uses their accounting software to generate a quarterly TSH report, which details the tax collected from all bookings across all their units. They use this report to accurately file their tax return with Revenu Québec.