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Ontario, CA Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
11.75% of rent charged
Effective rate date
Set by Ord. 3234, Jan. 19, 2023
Includes
Short-term and vacation rentals
Collecting agency
City Tax Administrator (Finance Director)
Late penalty
0.5%/day, then 10% at 30 days
Fraud penalty
Additional 25% of tax due

Summary

Every transient occupying a hotel room in Ontario, including short-term and vacation rentals under the code's broad 'hotel' definition, owes an 11.75% Transient Occupancy Tax on rent charged, collected by the operator and remitted to the City's Tax Administrator under Municipal Code § 3-6.03.

For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of eleven and three-quarters percent (11¾%) of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City, which debt shall be extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-32: Current through Ordinance 3338, passed 7-21-2026).

Full Breakdown

Ontario's Uniform Transient Occupancy Tax Law, Chapter 6 of Title 3, taxes short-term lodging broadly. 02 defines a taxable 'hotel' to include not just conventional hotels, motels and inns but tourist homes, lodging and rooming houses, apartment houses, vacation rentals, short-term rentals, dormitories, private clubs and even mobile homes at a fixed location, and defines a 'transient' as anyone occupying space for 30 consecutive days or less unless a written agreement sets a longer stay. 75% of the rent charged, a rate last set by Ordinance 3234 effective January 19, 2023; the transient pays it to the operator at the time rent is paid, and it becomes a debt to the City if unpaid.

04, but only if the exemption is claimed under penalty of perjury at the time rent is collected. 09). The certificate must be posted conspicuously and states plainly that it 'shall not constitute a permit' and does not authorize unlawful operation. 13.

Violations & Fines

Late remittance draws a 0.5% per day penalty for the first 30 days, then a further 10% penalty, plus 0.5% monthly interest, under § 3-6.11. If the Tax Administrator finds fraud, a 25% penalty is added on top. An operator who refuses to collect the tax, keep records, or who files a false return commits a misdemeanor under Municipal Code Chapter 1-2, with each day of noncompliance a separate offense.

Frequently Asked Questions

Does Ontario's hotel tax apply to Airbnb-style short-term rentals?
Yes. Municipal Code § 3-6.02 defines a taxable 'hotel' to expressly include vacation rentals and short-term rentals, not just traditional hotels and motels. A host renting a room or home for 30 consecutive days or less must collect the 11.75% Transient Occupancy Tax from the guest under § 3-6.03 and remit it to the City's Tax Administrator.
What is Ontario's transient occupancy tax rate?
11.75% of the rent charged, under § 3-6.03, most recently set by Ordinance 3234 effective January 19, 2023. The guest pays the tax to the operator when rent is paid, and if unpaid it becomes a debt owed directly to the City, collectible by the Tax Administrator.
What happens if an Ontario hotel operator doesn't remit the tax on time?
Section 3-6.11 imposes a 0.5%-per-day penalty for the first 30 days of delinquency, a further 10% penalty after 30 days, 0.5% monthly interest, and a 25% fraud penalty if the Tax Administrator finds the nonpayment was fraudulent. An operator who refuses to collect or remit the tax also commits a misdemeanor under Chapter 1-2.

Sources & Official References

Other rules in Ontario

All Ontario rules

California rules heatmap·Compare Ontario to another location·View the California hotels & lodging overview

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