Is Airbnb Legal in Kawartha Lakes? 2026 Rules, Permits & Taxes

Licence required

Yes

Taxes on a stay

13%

Fine for hosting without a permit

Up to C$100,000

Listings showing a permit number

0%

Latest rule change

Jan 1, 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

Any owner who rents all or part of a property for fewer than 28 consecutive days, whether a room, a whole home or a cottage, hosted or un-hosted. Hotels, motels, bed and breakfasts and similar commercial accommodation are outside the by-law.^1,2,3,4

Issued by

City of Kawartha Lakes, Municipal Law Enforcement and Licensing

Valid for

One year (1 April to 31 March) or a six-month season (31 October to 30 April, or 1 May to 31 October). The licence is renewed with the same application and ends when the property is sold or transferred.

Processing

About 2 to 4 weeks from submission to approval when no department raises concerns.

On listings

The number must appear on every listing

Platform checks

The by-law does not set up a platform registry. The licence number and approved occupancy must appear in any listing or advertisement, and advertising without a licence counts as operating without one.

Fees

Who qualifies

• The applicant must be the owner of the property; a tenant cannot hold the licence. A property owned by a company needs a corporate profile report.
• No principal-residence requirement and no cap on the number of licences; hosted and un-hosted rentals are both licensed.
• The property must meet the Zoning By-law, Property Standards By-law, Building Code Act, Fire Protection and Prevention Act and Electricity Act, with adequate water and septic systems.
• Liability insurance of at least $2,000,000 per occurrence that names the short-term rental on the property.
• A site diagram and floor plan, a responsible person who can be reached within 30 minutes, and an occupancy permit for any building constructed on or after 26 October 1986.
• Select the hosted licence only if you live at the property full-time and stay in an owner's suite while guests rent the property.

How to apply

1. 1 Read By-law 2023-111 and the City's owners and operators page, and check that the property meets zoning, building, fire, septic and electrical requirements.
2. 2 Gather proof of ownership, a copy of the owner's driver's licence, proof of general liability insurance of at least $2,000,000, and a scaled site diagram and floor plan showing room uses, alarms, fire extinguishers, shut-offs, exits, parking, wells and sewage system.
3. 3 Apply online on the City's licence application, or print the form and bring it to the Municipal Law Enforcement and Licensing office at 37 Lindsay Street South, Lindsay, and choose the hosted or un-hosted licence and the term.
4. 4 Pay the licence fee, which is collected before agency approval and is not refunded.
5. 5 Respond to any requests from the departments that review the application; the licence is issued with the maximum capacity allowed under the Ontario Building Code and the Fire Protection and Prevention Act.
6. 6 Put the licence number and approved occupancy on every listing, and post a copy of the licence at the property.

Permit rules

Licence required for rentals under 28 days

Anyone who rents all or part of a property in Kawartha Lakes for fewer than 28 consecutive days needs a Short-Term Rental Accommodation Licence from the City, whether the rental is a room, a whole home or a cottage.^1,2 In force since June 20, 2023

Advertising counts as operating

A person who advertises a short-term rental is treated as operating one, so a listing without a licence breaks the by-law even before the first guest arrives.¹ In force since June 20, 2023

The licence ends when the property is sold

A licence expires on the sale or transfer of the premises and cannot be assigned to anyone else, so a buyer must apply for a new licence before renting.¹ In force since June 20, 2023

Licence fees from $200 to $1,750

A one-year licence costs $400 hosted or $1,750 un-hosted; a six-month season costs $200 hosted or $875 un-hosted. The fee is collected before approval, is not refunded if the application is denied, and cannot be transferred.^3,4

Licence number and occupancy on every listing

Every listing or advertisement must carry the City licence number and the approved occupancy shown on the licence.¹ In force since June 20, 2023

Only the property owner can hold the licence

The City issues a licence only to the owner of the premises, so a tenant cannot hold one. Only one licence is allowed per premises.¹ In force since June 20, 2023

Hosted and un-hosted rentals are both licensed

A hosted licence is for owners who live at the property full-time and stay in an owner's suite while guests rent it. Every other rental, including a whole home or cottage rented while the owner is away, needs the higher-priced un-hosted licence.^3,4

No cap on the number of licences

The City does not limit how many short-term rentals it licenses, so there is no waitlist or lottery. Each application is judged on whether the property meets the by-law and the safety, zoning and septic requirements.⁵

No principal-residence requirement

The by-law does not require the host to live in the home, and it prices a separate un-hosted licence for owners who are away. A cottage, second home or investment property can be licensed if it passes the zoning, building, fire and septic review.^1,4

Zoning and property standards can block a licence

The licensing officer may refuse to issue or renew a licence where the premises do not conform to the Zoning By-law, Property Standards By-law or provincial building, fire and electrical law, or where the applicant owes the City money or has a history of by-law breaches.¹ In force since June 20, 2023

Fewer than 28 consecutive days is short-term

The by-law covers rentals of fewer than 28 consecutive calendar days. Hotels, motels, bed and breakfasts, country inns, tourist establishments and similar commercial accommodation are outside it.¹ In force since June 20, 2023

No limit on nights per year

The by-law sets no annual night cap. The licence term bounds the season: a one-year licence runs 1 April to 31 March, and six-month licences run 31 October to 30 April or 1 May to 31 October.^1,4

$2,000,000 liability insurance

Every application needs a certificate of general liability insurance of at least $2,000,000 per occurrence, and the policy must show that a short-term rental operates on the property.^1,3 In force since June 20, 2023

Two renters per bedroom, plus two

The by-law allows no more than two renters for each approved bedroom, plus two more overall as shown on the approved floor plan, and children under 15 are not counted. Only rooms approved as bedrooms on the floor plan may be rented.^1,5 In force since June 20, 2023

Septic capacity sets the maximum occupancy

The City says the maximum occupancy on a licence rests on the capability of the septic system, at two persons per bedroom, and children count toward the total. Owners on a private well that serves guests may also be classed as a small drinking water system.^3,5

Day guests capped, none after 11 pm

Visiting guests who do not stay overnight are limited to two per bedroom plus two overall, and no guest of any age may be at the property after 11 pm.¹ In force since June 20, 2023

Minimum renter age: 18 hosted, 25 un-hosted

A hosted rental may not be rented to anyone under 18, and an un-hosted rental may not be rented to anyone under 25.¹ In force since June 20, 2023

A local responsible person within 30 minutes

The application names a responsible person who can be reached within 30 minutes and be on site within 60 minutes of being notified of an emergency or by-law breach.^4,5

Smoke and carbon monoxide alarms

The City's 2026 guidance requires a smoke alarm in each sleeping room, in each hallway outside sleeping rooms and on every floor. A home with a fuel-burning appliance, fireplace or attached garage also needs carbon monoxide alarms outside each sleeping area and on all floors.³ In force since January 1, 2026

Fire extinguisher in the kitchen and on each floor

A rated portable fire extinguisher is required in any cooking area and on each floor of the building, kept charged, accessible and inspected monthly.¹ In force since June 20, 2023

Building, fire and septic review before the licence is issued

Once an application is complete, the City circulates it to the departments that review it, and the licence is issued with the maximum capacity allowed under the Ontario Building Code and the Fire Protection and Prevention Act. A building constructed on or after 26 October 1986 must also have an occupancy permit.^1,3

No more cars than parking spaces

Renters and guests may bring no more cars than there are designated parking spaces on the property, and the site diagram must show the parking area.¹ In force since June 20, 2023

Seasonal burn permit for campfires

An owner who lets guests have campfires must hold a seasonal burn permit, even during permitted burn times, and the fire pit must meet the City's open-air burning and fireworks by-law.⁵

Ontario Fire Code: carbon monoxide alarms on every storey

Under the Ontario Fire Code a home with a fuel-burning appliance, fireplace or attached garage needs a carbon monoxide alarm beside each sleeping area and, from 1 January 2026, on every storey including those without bedrooms.¹⁰ In force since January 1, 2026

Median nightly rate, booked nights

US$260

Taxes on that night (13%)

US$34

Guest pays, before Airbnb and cleaning fees

US$294

What the host still handles

• A GST/HST account once taxable sales exceed the $30,000 small supplier limit over four consecutive calendar quarters; Airbnb collects HST for hosts who are not registered.
• The City short-term rental licence ($400 or $1,750 a year), which is the business licence for the rental.^8,9,12

• Breaking any provision of the short-term rental by-law, including operating or advertising without a licence, carries a fine of up to $100,000 on conviction.¹
• Each day that an offence continues is treated as a separate and distinct offence, so fines can be laid for every day a rental runs without a licence.¹
• Inspection fees are charged to the owner when the City responds to a by-law breach at a rental: $121 for the first occurrence, $245 for the second, $490 for the third, $975 for the fourth, and doubled after that.³
• Seven demerit points in effect against a rental allow the City to suspend the licence for the rest of its term and up to six months.¹
• Fifteen demerit points allow the City to revoke the licence or deny an application, and points stay in effect for two years from the date they were assessed.¹
• Guests can be fined personally for breaking local by-laws, while the owner can be charged the inspection fees.³
• Municipal By-law Enforcement begins with education, issues notices of violation when required, and can pursue a chronic offender with a Part III offence under the Provincial Offences Act.⁵

1. January 1, 2026
   Carbon monoxide alarms required on every storey

   The Ontario Fire Code requires carbon monoxide alarms on every storey of a home with a fuel-burning appliance, fireplace or attached garage from 1 January 2026. The City's licence guidance lists the matching smoke and carbon monoxide alarm requirements as new for 2026.^3,10

2. February 2024
   Health unit to assess rentals on private wells

   In February 2024 the City reminded owners that rentals supplying drinking water from a private well are assessed by the health unit as small drinking water systems under Ontario Regulation 319/08.⁶

3. January 1, 2024
   Full licensing program begins

   The City's implementation timeline moved from the 2023 soft rollout to the full program from January 2024, when all short-term rentals are expected to hold a licence.⁶

4. December 1, 2023
   24/7 short-term rental hotline launched

   From 1 December 2023 neighbours can report noise, parties, parking and occupancy problems at any hour through a hotline and online form.⁶

5. June 20, 2023
   Council adopts the short-term rental licensing by-law

   On 20 June 2023 Council adopted By-law 2023-111 to license, regulate and govern short-term rental accommodation businesses and approved a soft rollout of the licensing program.^1,6

Estimate what a Kawartha Lakes home could earn

1. 1. By-law 2023-111: A By-law to License, Regulate and Govern Short-Term Rental Accommodation Businesses · City of Kawartha Lakes
2. 2. Short-Term Rentals · City of Kawartha Lakes
3. 3. Owners and Operators · City of Kawartha Lakes
4. 4. Short Term Rental Accommodation Business License and Renewal Application (online form) · City of Kawartha Lakes
5. 5. Frequently Asked Questions (Short-Term Rentals) · City of Kawartha Lakes
6. 6. History of Short Term Rentals in Kawartha Lakes · City of Kawartha Lakes
7. 7. Regular Council Highlights – December 10, 2024 · City of Kawartha Lakes
8. 8. Charge and collect the GST/HST: which rate to charge · Canada Revenue Agency
9. 9. Who needs to register for GST/HST · Canada Revenue Agency
10. 10. Carbon monoxide safety · Government of Ontario
11. 11. The Home-Sharing Guide for Ontario Municipalities · Ontario Ministry of Finance
12. 12. Tax collection and remittance by Airbnb in Canada · Airbnb Help Centre