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

Licence required

Yes

Taxes on a stay

16%

Fine for hosting without a permit

C$10,000

Listings showing a permit number

94%

Next rule change

Jul 1, 2027

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

Anyone who rents a dwelling unit or bedroom in Kelowna for less than 90 consecutive days, whether the unit is their principal residence (Minor, secondary use) or an eligible STR-subzone building (Major, principal use).^3,4,6

Issued by

City of Kelowna Business Licensing (licence) and the Province of British Columbia Short-Term Rental Branch (registration)

Valid for

One year. The City business licence and the provincial registration are both renewed annually.

Processing

Two to four weeks for a final review once a complete application package has been received.

On listings

The number must appear on every listing

Platform checks

Platforms must check the provincial registration number against the provincial registry, and Airbnb has a dedicated field for it. A platform must remove a listing that breaks a business licence requirement when the City asks.

Fees

Who qualifies

• Minor (secondary use): the unit must be your principal residence, the usual place where you make your home for most of the year (at least 240 days a year); a bedroom in it can also be rented.
• Major (principal use): the building must already be approved for the STR subzone by the Planning Department, and the owner does not have to live in the unit.
• A secondary suite or carriage house can be rented only by a principal resident who lives in a dwelling unit on the same lot.
• Tenants need the owner's consent form, and units in a strata need the strata consent form.
• Short-term rental operators must also register with the Province and meet the City's fire and safety requirements.

How to apply

1. 1 Confirm that the home is your principal residence, or that the building is on the City's list of eligible STR-subzone properties and your strata has agreed to the subzone.
2. 2 Gather one piece of government photo identification, one principal residence document (such as an ICBC insurance certificate or home owner grant confirmation), the strata or owner consent form, the self-evaluation fire and safety attestation, the good neighbour agreement and a fire evacuation plan.
3. 3 Apply for the short-term rental business licence online, pay the $50 application fee, and pay the $345 invoice once the application is approved.
4. 4 Register the unit with the Province, uploading the City business licence, and pay $100 or $450 plus the $1.50 service fee.
5. 5 Add the City business licence number, the provincial registration number, the number of permitted sleeping units and whether parking is provided to every online listing.

Permit rules

Every short-term rental needs a City business licence

Anyone operating a short-term rental in Kelowna must apply for a business licence, and the City licenses two types: Minor (secondary use) for a principal residence and Major (principal use) for eligible STR-subzone buildings.³

The City licence costs $345 a year plus a $50 application fee

The $50 application fee is paid when the application is submitted. If the application is approved, an invoice for the $345 licence must be paid before the licence is released, and the licence is renewed every year.³

Provincial registration is required as well

Kelowna operators must also register with the Province once they hold a valid City licence. The annual fee is $100 for a home where the host lives and $450 for a home where the host does not live, plus a $1.50 service fee.^3,6 In force since May 1, 2025

Show the licence number, sleeping units and parking in every listing

Operators must say whether guest parking is provided and put that in all online marketing, together with the business licence number and the number of permitted sleeping units.³

Show the provincial registration number as well

Registered hosts must also show their provincial registration number on the listing, and the business licence number in areas where the local government requires a licence.^6,14 In force since May 1, 2025

Unregistered listings are removed and bookings cancelled

If a host does not register with the Province, the listings stop being advertised, existing bookings are cancelled and new bookings cannot be accepted.⁷ In force since June 2, 2025

The City can have a listing taken down

If a listing does not comply with a business licence requirement, the platform must remove it when the local government asks. Platforms also share listing data with the Province every month to help local enforcement.⁸

You must live in the home, except in approved buildings

A principal resident can rent their principal residence, or a bedroom in it, for under 90 days with a business licence. The City's principal residence requirement stays in place for every zone except buildings approved for the STR subzone.³ In force since June 1, 2026

A principal residence means at least 240 days a year

The City defines a principal residence as the usual place where a person makes their home for most of the calendar year, a minimum of 240 days a year.³

Approved buildings can rent without the owner living there

Since 1 June 2026 a property rezoned to the STR subzone can operate as a short-term rental for any length of time, and the owner does not need to live in it. The City publishes a list of eligible properties.³ Applies to: STR-subzone buildings · In force since June 1, 2026

Kelowna left the provincial principal residence rule on 1 June 2026

A one-time provincial regulation took Kelowna out of the provincial principal residence requirement from 1 June 2026, subject to local restrictions. Hosts still upload a City business licence when they register with the Province.^4,5 In force since June 1, 2026

A suite or carriage house needs a resident on the lot

A secondary suite or carriage house can be used for short-term rental only if a principal resident lives in a dwelling unit on the same lot.³

Agricultural Land Reserve properties: up to 4 bedrooms, no carriage house

On land in the Agricultural Land Reserve, tourist accommodation is allowed in the principal residence or a secondary suite up to a maximum of 4 bedrooms, but not in an additional residence such as a carriage house.³ Applies to: Agricultural Land Reserve

Strata consent is required, and a strata can still ban rentals

Units in a strata must include the strata consent form with the licence application, and a building seeking the STR subzone needs a Strata Council Consent Application Form signed by a strata council executive member. A strata can also ban short-term rentals by bylaw.^3,12 Applies to: Strata properties

Tenants need the owner's consent form

A tenant applying for a licence must provide the owner consent form with the application.³ Applies to: Tenants

No grandfathering for rentals that break the bylaw

Legal non-conforming use protection no longer applies to short-term rentals in British Columbia, so a rental that does not fit the current bylaw cannot continue because it operated before.^8,9 In force since May 1, 2024

Under 90 consecutive days counts as a short-term rental

The City defines a short-term rental as any rental of a dwelling unit or bedroom for less than 90 consecutive days, and operators must follow its rules to rent legally on that basis.³

Up to 3 bedrooms per unit and 5 sleeping units per lot

A maximum of 3 bedrooms can be used for short-term rental per dwelling unit. A lot with a detached house plus a carriage house or secondary suite can use at most two dwelling units and five sleeping units in total.³

Two adults per sleeping unit

No more than two adults may occupy a sleeping unit, which caps the number of adult guests at twice the number of licensed sleeping units.³

One booking at a time in each dwelling unit

Only one booking or reservation is permitted in each dwelling unit at one time, so a home cannot be split between separate parties.³

A wall-mounted 2A10BC fire extinguisher on each floor

Operators must install a minimum 2A10BC rated fire extinguisher on each floor, wall mounted and visible rather than stored in a closet or cupboard.³

Smoke alarms tested monthly with a logbook

Smoke alarms must be tested monthly with a logbook of test dates and replaced after 10 years. Smoke alarms, fire extinguishers and carbon monoxide detectors must also be tested annually and kept in working order.³

A contact person available around the clock

Operators must provide contact information for someone who is available to respond to incidents 24 hours a day, seven days a week.³

The City inspects and can audit records

Operators must give the City access to inspect the rental on request. Staff may also audit licences and documents and ask for booking records and fire safety inspection records.³

Guests must respect the Good Neighbour Bylaw

Because many rentals are near other homes, hosts must make sure guests are considerate of neighbours at all times of day and aware of the Good Neighbour Bylaw and any strata rules.³

Median nightly rate, booked nights

US$170

Taxes on that night (16%)

US$27

Guest pays, before Airbnb and cleaning fees

US$197

What the host still handles

• The City of Kelowna short-term rental business licence and the provincial short-term rental registration.
• A BC PST account (which also covers MRDT) if you also take bookings outside a platform that collects the tax, such as through your own website; the platform collects it on bookings made through it.
• A GST/HST account once taxable sales pass the $30,000 small supplier threshold; Airbnb collects GST on behalf of hosts who are not registered.^2,10,11,13

• A host who does not register, or who breaks the registration rules, faces provincial administrative penalties of up to $5,000 for a first contravention, $7,500 for a second and $10,000 for a third or later; the province reports host penalties of $500 to $5,000 a day per infraction.^1,9
• The City of Kelowna can fine an operator up to $500 per day, per offence, and higher amounts if compliance efforts require escalation, and the province can enforce separately.³
• A listing without a valid registration number or business licence number carries lower provincial penalties of up to $500 for a first contravention, $750 for a second and $1,000 for a third or later.^1,9
• Where a bylaw offence is prosecuted, British Columbia local governments can seek fines of up to $50,000.⁸
• A host who does not register has the listing removed, existing bookings cancelled and new bookings blocked.⁷
• A strata corporation can fine an owner or resident up to $1,000 a day for breaking its short-term rental bylaw.¹²

1. July 1, 2027 Upcoming
   Kelowna's 3% MRDT entry has a repeal date of 1 July 2027

   Schedule 1 of the Designated Accommodation Area Tax Regulation lists 1 July 2027 as the repeal date for the City of Kelowna's 3% Municipal and Regional District Tax. The tax applies until then and continues afterwards only if the regulation is amended.²

2. June 1, 2026
   Kelowna leaves the provincial principal residence requirement

   A one-time provincial regulation brought Kelowna's opt-out into effect on 1 June 2026. The City keeps its own principal residence requirement except in buildings approved for the STR subzone, where owners need not live in the unit.^3,4

3. April 17, 2026
   Province grants Kelowna an early opt-out

   The province announced a special one-time regulation for Kelowna, the only local government to request an opt-out in 2026, citing major summer events planned in the community.⁴

4. June 2, 2025
   Platforms must remove listings without a valid registration number

   From 2 June 2025 platforms must stop advertising listings without a valid provincial registration number and block new bookings. Hosts had to register by 1 May 2025.^6,7

5. May 1, 2024
   Legal non-conforming use protection ends for short-term rentals

   From 1 May 2024 a short-term rental that did not meet the local bylaw could no longer continue under non-conforming use protection.⁹

Estimate what a Kelowna home could earn

1. 1. Short-Term Rental Accommodations Regulation (B.C. Reg. 268/2023), Schedule 4 · BC Laws, King's Printer
2. 2. Designated Accommodation Area Tax Regulation (B.C. Reg. 93/2013) · BC Laws, King's Printer
3. 3. Kelowna's short-term rental regulations · City of Kelowna
4. 4. Accelerating short-term rental opt-out process · BC Gov News
5. 5. B.C.'s short-term rental principal residence requirement · Province of British Columbia
6. 6. Register as a host · Province of British Columbia
7. 7. Short-term rental registration · Province of British Columbia
8. 8. B.C.'s short-term rental legislation · Province of British Columbia
9. 9. New rules take effect to rein in short-term rentals, deliver more homes · BC Gov News
10. 10. PST and MRDT on accommodation · Province of British Columbia
11. 11. When to register for and start charging the GST/HST · Canada Revenue Agency
12. 12. Strata short-term rental bylaws · Province of British Columbia
13. 13. Tax collection and remittance by Airbnb in Canada · Airbnb Help Centre
14. 14. British Columbia · Airbnb Help Centre