Is Airbnb Legal in Canmore? 2026 Rules, Permits & Taxes

Permit required

Yes

Taxes on a stay

11%

Fine for hosting without a permit

C$10,000

Listings showing a permit number

0%

Next rule change

Dec 31, 2026

Listing figures: AirROI, 12 months to September 2026. A number on a listing doesn't prove the permit or licence is valid, and a missing one doesn't prove there is none.

The rules in brief

Who needs it

The owner of every tourist home, condo-hotel or other visitor accommodation unit rented short-term, with one licence per individually titled property or unit. A licensed bed and breakfast needs its own development permit and licence.^1,5,6,9

Issued by

Town of Canmore (Business Registry for the licence; Planning and Development for the development permit)

Valid for

Licences expire on 31 December each year and are renewed annually; the Town sends an invoice at the end of the year, and a licence cannot be transferred to a new owner.

Processing

Up to 10 business days for a complete application package.

On listings

The number must appear on every listing

Platform checks

The duty to show the number sits with the host: the Town requires it in every online advertisement, and a property that does not display a valid number faces enforcement action, which can include fines.

Fees

Who qualifies

• The home must already hold a tourist home development permit (assessment code 21) or be a visitor accommodation unit in a building zoned for it; an ordinary residential dwelling cannot be licensed for Airbnb use.
• Since 11 March 2025 a residential property cannot be converted to a tourist home and new tourist homes cannot be built, with possible exceptions.
• Tourist homes are allowed in few residential districts: today only the two Silvertip residential districts.
• A bed and breakfast must be run by the principal resident of the dwelling, with a development permit, up to three guest rooms and a site inspection.
• Visitor accommodation needs a centralized booking system, and people may not live in the units.

How to apply

1. 1 Confirm the property is already an approved tourist home (assessment code 21 on the Town's property viewer), a visitor accommodation unit or a licensed bed and breakfast.
2. 2 Complete the Town's business licence application form and attach proof of ownership if the property was recently bought, plus the Alberta business registration document that matches your business structure.
3. 3 Email or mail the application to the Business Registry at businessregistry@canmore.ca; payment instructions are sent once it has been processed.
4. 4 Print the licence and display it at the property, and put the licence number in every online advertisement.
5. 5 Renew every year and keep the development permit current.

Permit rules

A tourist home needs its own development permit

Operating a tourist home is a separate development from the dwelling and requires a development permit, in addition to the business licence.^2,4 Applies to: Canmore

One $150 business licence per titled property

Owners of tourist homes and visitor accommodation units need one Town business licence for each individually titled property, so an owner of three tourist homes holds three licences. The licence costs $150 a year.^1,6 Applies to: Canmore · In force since January 1, 2025

Licence number in every online advertisement

The Town business licence number must appear in all online advertising, including on rental platforms such as Airbnb, and must be immediately visible to the public.^1,6 Applies to: Canmore

Licence displayed at the property

The licence must be printed and displayed at the property, where guests can see it, as well as posted with every online advertisement.^6,8 Applies to: Canmore

No advertising without a valid development permit

A tourist home operator may not advertise the home unless a valid development permit is in force when the advertisement is placed. Since 20 August 2025 advertising a tourist home without one is itself an offence, and an advertisement is enough to show the owner is operating it.² Applies to: Canmore · In force since August 20, 2025

Licences expire on 31 December

Each Business Registry licence expires at midnight on 31 December of the year it was issued. A new licence that starts on or after 1 July pays half the annual fee, except for bed and breakfasts.^1,8 Applies to: Canmore

Licences do not transfer to a buyer

A business licence cannot be transferred between owners and fees are not refundable. After a sale the previous licence is cancelled and the new owner applies for their own.⁶ Applies to: Canmore

Advertising alone can trigger enforcement

Listing a home as a vacation rental on Airbnb or VRBO can result in enforcement action by the Town even before any guest stays.⁴ Applies to: Canmore

Ordinary homes cannot be listed on Airbnb

A residential dwelling unit may not be promoted on short-term listing sites such as Airbnb unless it is approved and licensed as a bed and breakfast, which may rent up to three rooms.⁴

Any short-stay use makes a home a tourist home

A dwelling used for short-term stays counts as a tourist home whether or not money changes hands, and then needs specific permits and can operate only in limited areas.⁴

Tourist homes only in a few districts

Few residential districts allow tourist homes today: only the two Silvertip residential districts. The Land Use Bylaw sets which districts allow them, and visitor accommodation such as hotels sits in commercial zones like Bow Valley Trail and the Downtown district.⁴ Applies to: Canmore

No new tourist homes since 11 March 2025

The Land Use Bylaw was amended on 11 March 2025 to eliminate tourist homes as a permitted use for a property. Existing tourist homes stay as they are, but the option to convert a residential property or build a new tourist home has been eliminated, with possible exceptions.⁵ Applies to: Canmore · In force since March 11, 2025

Apartment buildings: whole building or whole floor

A tourist home inside an apartment building is allowed only where a development permit covers the entire building or an entire floor, so a single unit among residents cannot be a tourist home.² Applies to: Canmore

Visitor accommodation (hotels, condo-hotel units) may be on Airbnb

Visitor accommodation, such as hotels, motels and condo-hotel units in zoned areas, may be promoted on Airbnb. It needs a business licence and a development permit and a centralized booking system, and people may not live in the units.⁴ Applies to: Canmore

Bed and breakfast: the route for a home you live in

A bed and breakfast is run by someone living in a single-family home, for stays of up to 14 days, with at most three guest rooms or six guests. It needs a development permit with a site inspection and a statutory declaration that the operator is the principal resident.^2,7 Applies to: Canmore

Bed and breakfast caps: 5% of detached homes, 50 m apart

Bed and breakfasts are limited to 5% of occupied detached homes in a census district, and a new one must be at least 50 m from an existing one. A first development permit lasts one year and later permits up to three.² Applies to: Canmore

How the Land Use Bylaw defines a tourist home

A tourist home is a dwelling unit operated or advertised as a temporary place to stay. Advertising on Airbnb, VRBO or similar sites, nightly rates, electronic payment, third-party management and income all count as signs of one.² In force since August 20, 2025

At most 4 bedrooms and 2 guests per bedroom

A dwelling unit used as a tourist home may have at most four bedrooms, with at most two guests per bedroom.² Applies to: Canmore

No interference with neighbours' quiet enjoyment

A tourist home may not interfere with nearby residents' quiet enjoyment of a residential neighbourhood, and the Development Officer may inspect it to check compliance with the bylaw and the permit.² Applies to: Canmore

Night noise limit of 60 decibels

Under the Community Standards Bylaw, noise may not exceed 60 decibels at the property line of a residential property between 10pm and 7am.³ Applies to: Canmore

Parking and front-yard limits

A tourist home must provide parking under the general parking requirements, and may not use more than 50% of the area between the residence and the street for driveway and parking in a residential district.² Applies to: Canmore

How long a short stay is

Canmore sets no nightly minimum for a tourist home, but visitor accommodation covers stays of up to 30 days and a bed and breakfast offers stays of up to 14 days. Renting a room or a home long-term to people living in the community is allowed.^4,7 Applies to: Canmore

Tourist homes pay a higher property tax rate

Since 2025 owners can no longer declare personal use for a tourist home, so every tourist home pays the same higher property tax rate, about three times the rate of residential properties according to the Town.⁵ Applies to: Canmore · In force since January 1, 2025

Converting back to residential is free until the end of 2026

An owner who stops renting short-term can convert a tourist home back to residential use, and the Town waives the conversion fees until 31 December 2026. A residential property cannot be rented short-term.^2,5 Applies to: Canmore · In force since December 3, 2024

Median nightly rate, booked nights

US$285

Taxes on that night (11%)

US$31

Guest pays, before Airbnb and cleaning fees

US$316

What the host still handles

• A Town of Canmore business licence ($150 a year) for each tourist home, condo-hotel unit or bed and breakfast, and a development permit for the home.
• A tourism levy account with Alberta Tax and Revenue Administration (TRA) through the TRACS portal if you collect full or partial payment from guests yourself, for example on a direct booking.
• A GST/HST account only once taxable sales pass the $30,000 small supplier limit; Airbnb collects GST for hosts who are not registered.^{10,12,13,14,17,18}

• Operating a tourist home where the Land Use Bylaw does not permit it is an offence under the Business Registry Bylaw: $2,500 for a first offence in a calendar year, $5,000 for a second and $10,000 for a third or later offence.^1,6
• Land Use Bylaw violation tags for tourist home offences carry minimum penalties of $2,500, $5,000 and $10,000. Operating or advertising a tourist home without a valid development permit can be tagged.²
• A dwelling rented illegally as a tourist home can receive a cease-use order and fines of $2,500 for the first offence and $5,000 for later ones.⁴
• Any other breach of the Business Registry Bylaw, such as operating without a licence, carries $250 for a first offence, $500 for a second and $1,000 for a third or later offence, plus the licence fee.^1,6

1. December 31, 2026 Upcoming
   Fee waiver for converting a tourist home back to residential ends

   The Town waives its fees for changing a property from tourist home to residential until 31 December 2026. A residential property cannot be rented short-term and pays the lower residential property tax rate.⁵

2. April 1, 2026
   Alberta tourism levy rises from 4% to 6%

   The 6% rate applies to accommodation booked after 31 March 2026. Bookings made earlier stay at 4%.¹⁰

3. September 2025
   Business licence extended to visitor accommodation units

   Bylaw 2025-24 added visitor accommodation to the Business Registry: one licence per unit, $150 for a condo-hotel unit and $225 to $600 for hotels, motels and inns by size, with the number in all online advertising.^1,6

4. August 20, 2025
   Advertising a tourist home without a development permit becomes an offence

   Land Use Bylaw amendment 2025-21 widened the definition of a tourist home and made operating or advertising one without a valid development permit a violation-tag offence.²

5. March 11, 2025
   Canmore ends new tourist homes

   The Land Use Bylaw was amended to eliminate tourist homes as a permitted use for a property. Existing tourist homes remain, but a residential property cannot be converted and new ones cannot be built, with possible exceptions.^2,5

6. January 2025
   Personal-use declaration ends and a licence per tourist home begins

   From the 2025 tax year every tourist home is taxed at the same higher rate, and tourist homes operating as short-term rentals must hold one business licence per unit.^5,6

7. December 3, 2024
   Streamlined tourist home conversion to residential

   Land Use Bylaw amendment 2024-30 let owners convert a tourist home to residential use without a development permit.²

8. October 1, 2024
   Online brokers collect the Alberta tourism levy

   From 1 October 2024 online brokers that collect payment, and hosts who collect payment themselves, register for and remit the tourism levy.^10,18

Estimate what a Canmore home could earn

1. 1. Business Registry Licence Bylaw 2015-02 (office consolidation current as of 2 September 2025) · Town of Canmore
2. 2. Revised Land Use Bylaw 2018-22 (office consolidation) · Town of Canmore
3. 3. Community Standards Bylaw 2022-16 (office consolidation current as of 20 August 2025) · Town of Canmore
4. 4. Accommodation Types · Town of Canmore
5. 5. Tourist Homes · Town of Canmore
6. 6. Business Licences · Town of Canmore
7. 7. Development Permits · Town of Canmore
8. 8. Short-Term Rentals in Canmore (owner guide) · Town of Canmore
9. 9. Fee Schedule (2026 Master Fee Schedule) · Town of Canmore
10. 10. Tourism levy · Government of Alberta
11. 11. GST/HST for digital-economy businesses: Overview · Canada Revenue Agency
12. 12. GST/HST calculator (and rates) · Canada Revenue Agency
13. 13. When to register for and start charging the GST/HST · Canada Revenue Agency
14. 14. About Tax and Revenue Administration · Government of Alberta
15. 15. 2026 Assessment Roll - by Property Address · Town of Canmore
16. 16. Assessment Code Legend · Town of Canmore
17. 17. Tax collection and remittance by Airbnb in Canada · Airbnb Help Centre
18. 18. Alberta: laws and regulations for hosts · Airbnb Help Centre