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

Permit required

Yes

Taxes on a stay

19%

Fine for hosting without a permit

Up to C$100,000

Listings showing a permit number

69%

Next rule change

Feb 7, 2027

Listing figures: AirROI, 12 months to October 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 principal residence, or part of a residential unit, for fewer than 30 consecutive nights. A rural cottage rental needs a separate cottage rental permit.^1,5,6,7,8,14

Issued by

City of Ottawa, By-law and Regulatory Services (Business Licensing Centre)

Valid for

Two years from issue, for the address on the permit only; renew by applying again within 30 days before it expires.

Processing

The City publishes no fixed processing time; the permit is mailed once all by-law requirements are met.

On listings

The number must appear on every listing

Platform checks

Hosts may list only through platforms registered with the City, and Airbnb was the only platform on the City's list as of 23 December 2025. An advertisement for a prohibited rental must be removed within 72 hours of notice.

Fees

Who qualifies

• Applicant is at least 18 and a natural person; the unit must be owned or leased by that person.
• The unit is the applicant's principal residence (an Ontario driver's licence or identification card is the example of proof), or a rural cottage for a cottage rental permit.
• A tenant needs written consent from the property owner, and a landlord, condominium corporation or housing co-operative that has registered a prohibition blocks the permit.
• Not in an accessory building, vehicle, trailer, unlawful unit or community housing, and not in a zone where bed and breakfast use is prohibited.
• Liability insurance of at least $1,000,000 per occurrence that covers short-term rental use.
• No unpaid City user fees or unpaid Provincial Offences Act fines.

How to apply

1. 1 Confirm the home is your principal residence and that your landlord, condominium corporation or housing co-operative has not registered a prohibition.
2. 2 Gather proof of age, ownership or lease (with the owner's written consent if you rent), proof of principal residence, a floor plan with square footage and bedrooms, proof of insurance and a signed declaration.
3. 3 Apply by email to str_lcd@ottawa.ca, through the City's online application form, or in person at the Business Licensing Centre, 735 Industrial Avenue, 2nd floor (Monday to Friday, 8:30 am to 4:15 pm).
4. 4 Pay the $123 fee in full; the permit is mailed to the address on the application.
5. 5 Put the permit serial number and the maximum number of overnight guests on every listing.

Permit rules

A host permit is required for stays under 30 nights

Anyone renting a principal residence, or part of a residential unit, for fewer than 30 consecutive nights needs a City of Ottawa host permit before listing. Operating without one is an offence under the Short-Term Rental By-law.^1,5

List only on platforms registered with the City

Hosts may market or book a short-term rental only through a platform registered with the City. Airbnb was the only platform on the City's list of licensed platforms as of 23 December 2025.^1,9,12

Permit number and guest limit on every listing

Every advertisement or listing must show the host permit serial number and the maximum number of overnight guests set on the permit.^1,9

What the application needs

The applicant must be at least 18 and provide proof of ownership or lease, written consent from the owner if the unit is rented, proof of principal residence such as an Ontario driver's licence or identification card, a floor plan with square footage and bedrooms, proof of insurance, a signed declaration and the full fee.^1,6

Permit lasts two years and renews by reapplying

A host permit lasts two years and is valid only for the address on it. A host renews it by applying again, in the same way as a new application, within 30 days before it expires.^1,8,14

Prohibited advertisements come down within 72 hours

Anyone who has an advertisement for a short-term rental that is prohibited under the by-law must remove it within 72 hours of learning of the prohibition or receiving notice from the City.¹

Only the home you live in

In the urban area and rural villages a short-term rental is allowed only in the host's principal residence, whether the host owns or rents it. A unit that is not the host's principal residence cannot be listed, except for a rural cottage rental.^1,5,10

What counts as a principal residence

The principal residence is the unit where the host ordinarily lives and conducts daily affairs such as paying bills, taxes and insurance and holding a driver's licence. A host cannot have another property designated as a principal residence in Ottawa or anywhere else.¹

One permit per resident, held by a person, not transferable

Each resident may hold one host permit for a principal residence and one for a cottage rental. A permit is issued only for a unit owned or leased by a natural person (not a company), applies to one address and cannot be sold or transferred.¹

Where short-term rentals are allowed

Short-term rentals are allowed in a principal residence in the urban area (except where the Zoning By-law prohibits bed and breakfast use) and in rural villages. In rural areas outside villages a cottage, vacation home, secondary suite or coach house may be rented. Certain dwellings legally established as hotels before the by-law may also operate.¹⁰

Zoning allows a rental as a secondary use of your home

Zoning treats a short-term rental as a secondary use within the operator's principal residence in any zone where a dwelling unit is allowed. It is prohibited in the AG4 to AG8 agricultural subzones, and it cannot change the home's outside appearance or cause traffic, parking or noise problems. Zoning By-law 2026-50, section 302, repeats this rule.^2,3

Secondary suites and coach houses

A secondary suite (additional dwelling unit) or coach house can be rented short term only when it is occupied as a principal residence and the rental is run by the unit's exclusive resident.^2,3

Rural cottage rentals need their own permit

A rural cottage, vacation home, secondary suite or coach house that is not the owner's principal residence can be rented as a cottage rental in rural countryside, rural residential, rural commercial and agricultural zones, with one cottage rental per lot and a cottage rental permit separate from any permit for the host's own home.^3,5,10

Landlords, condominiums and co-operatives can prohibit rentals

A landlord, condominium corporation or housing co-operative may register a prohibition with the City. The City issues no permit for a prohibited property and revokes a permit issued earlier. Community housing is excluded altogether.^1,11

Stays under 30 consecutive nights are regulated; there is no night cap

The by-law applies to stays of fewer than 30 consecutive nights. It sets no limit on the number of nights a host may rent in a year.^1,5

Two guests per sleeping room, eight in most homes

Overnight guests are limited to two per sleeping room. A dwelling unit may use up to four sleeping rooms and eight overnight guests; an oversize dwelling (five to eight bedrooms) may use eight sleeping rooms and ten guests. The City can lower the limit for safety or noise reasons.¹

Smoke and carbon monoxide alarms and a fire extinguisher on each floor

A host must keep working smoke alarms where the Ontario Fire Code requires them, a working carbon monoxide alarm where there is a fireplace or fuel-burning appliance, and an ABC fire extinguisher on each floor that guests can reach.¹

Carbon monoxide alarms on every storey from 2026

Under the Ontario Fire Code, homes with a fuel-burning appliance, fireplace or attached garage need a carbon monoxide alarm beside each sleeping area and, from 1 January 2026, on every storey including storeys with no bedrooms.¹⁹ In force since January 1, 2026

$1 million liability insurance covering short-term rental use

A host must carry homeowners, condominium or renters insurance that covers short-term rental activity, with liability of at least $1,000,000 per occurrence and 30 days' written notice to the City of any cancellation. Proof of insurance goes with the application.^1,6

Airbnb-only hosts and proof of insurance

Airbnb's Ottawa help page says hosts who list only on Airbnb are covered by Airbnb's host liability insurance and do not have to share their own proof of insurance, because Airbnb gave the City one document for all hosts. The City's application checklist still lists proof of insurance.^6,21

Guest information package and a contact for neighbours and guests

Hosts must give guests an information package, electronically at booking and printed inside the unit, with a contact who answers during the stay, 9-1-1 and hospital details, evacuation plan, waste, parking, smoking and vaping rules and a copy of the permit. Hosts must also tell the guest whether anyone else will be present.^1,9

The City can suspend or revoke a permit without notice

The Chief of By-law and Regulatory Services may suspend a permit without notice for a violation, and may revoke it for non-compliance, false information or a risk to public health or safety. A decision can be reviewed by the Property Standards and License Appeals Committee if requested within 14 days.¹

Property managers must register and carry $2 million insurance

A host may hire a property manager, but the manager must register with the City each year, hold the host's written authorization, answer complaints within two hours and carry commercial general liability insurance of $2,000,000 per occurrence.¹

Median nightly rate, booked nights

CA$120

Taxes on that night (19%)

CA$23

Guest pays, before Airbnb and cleaning fees

CA$143

What the host still handles

• A GST/HST account once taxable sales go over the $30,000 small supplier limit; Airbnb collects the HST for hosts who are not registered.
• Municipal Accommodation Tax: accommodation providers who collect the 6% themselves register with the Ottawa Gatineau Hotel Association (info@ogha.ca) and remit within 30 days after month end.
• The City host permit, and a property manager registration if a manager runs the rental.^{13,15,16,17,20}

• Breaking the Short-Term Rental By-law, including renting without a host permit: on conviction, a fine of up to $100,000 for each day the offence continues, and a court can add a special fine above $100,000.¹
• Suspension or revocation: the City can suspend a permit without notice for a violation and revoke it for non-compliance, false information or a risk to public health or safety; a person cannot market or provide a rental while the permit is suspended.¹
• Unpaid City fees or Provincial Offences Act fines: the City refuses a host permit to any applicant with a record of them.¹
• Advertising: a prohibited advertisement must come down within 72 hours of notice, and publishing a claim to hold a valid permit without one is an offence.¹

1. February 7, 2027 Upcoming
   Zoning section 121A is set to be repealed

   Section 121A of Zoning By-law 2008-250, the provision that permits a short-term rental within the operator's principal place of residence, states that it is repealed on 7 February 2027. Section 302 of the new Zoning By-law 2026-50 carries the same rule.^2,3

2. March 11, 2026
   New Zoning By-law 2026-50 enacted

   Council enacted Zoning By-law 2026-50 on 11 March 2026. On 2 July 2026 the Ontario Land Tribunal ordered that the parts not under appeal may come into force, retroactive to 11 March 2026. Its sections 302 and 303 cover short-term rentals and cottage rentals.^3,4

3. January 1, 2026
   Ontario Fire Code requires carbon monoxide alarms on every storey

   From 1 January 2026 a home with a fuel-burning appliance, fireplace or attached garage needs a carbon monoxide alarm on every storey, including storeys without bedrooms.¹⁹

4. January 1, 2026
   Ottawa's accommodation tax rises from 5% to 6%

   The Municipal Accommodation Tax in Ottawa is 6% from 1 January 2026, raised from 5% by By-law 2026-8.¹³

Estimate what an Ottawa home could earn

1. 1. Short-Term Rental (By-law No. 2021-104), consolidation current to 18 June 2026 · City of Ottawa
2. 2. Zoning By-law 2008-250, Short-term Rental Provisions (Section 121A) · City of Ottawa
3. 3. Zoning By-law (By-law No. 2026-50), Part 3: Specific Use Provisions · City of Ottawa
4. 4. Zoning By-law (By-law No. 2026-50) · City of Ottawa
5. 5. Short-Term Rentals · City of Ottawa
6. 6. What is needed to apply for a Host Permit? · City of Ottawa
7. 7. How to apply for short-term rental permits, registrations and prohibitions · City of Ottawa
8. 8. Short-Term Rentals: Fee schedule · City of Ottawa
9. 9. Rules for short-term rental hosts · City of Ottawa
10. 10. Where are short-term rentals allowed? · City of Ottawa
11. 11. Prohibiting short-term rentals · City of Ottawa
12. 12. Short-Term Rentals: List of licensed platforms · City of Ottawa
13. 13. Hotel and short term accommodation tax: for owners · City of Ottawa
14. 14. Short-Term Rental Host Application Form · City of Ottawa
15. 15. GST/HST calculator (and rates) · Canada Revenue Agency
16. 16. When to register for and start charging the GST/HST · Canada Revenue Agency
17. 17. GST/HST for digital-economy businesses: Overview · Canada Revenue Agency
18. 18. The Home-Sharing Guide for Ontario Municipalities · Ontario Ministry of Finance
19. 19. Carbon monoxide safety · Government of Ontario
20. 20. Tax collection and remittance by Airbnb in Canada · Airbnb Help Centre
21. 21. Ottawa: laws and regulations for hosts · Airbnb Help Centre