Ontario Short-Term Rental Laws & Hotel Tax (2026)

State licence required

Yes

Next rule change

Feb 7, 2027

The laws in brief

Who needs it

Hosts in Toronto, Ottawa, Mississauga, Brampton, Hamilton, London and The Blue Mountains need a municipal licence, registration or permit before listing. Niagara Falls licenses vacation rental units only in its commercial zones.^{12,13,17,18,20,25,27,30,31}

Issued by

The municipality: for example the City of Toronto (registration), the City of Ottawa (host permit) and the City of Mississauga (licence). The province issues none.

Valid for

Annual in Toronto, Mississauga, Brampton (expires 30 September) and London; every two years in Ottawa and The Blue Mountains.

Processing

Varies by city: Mississauga renewals take up to a month and a police record check can take six weeks or more, and Toronto asks applicants to apply early because of high application volume.

On listings

The number must appear on every listing

Platform checks

Toronto requires platforms to validate registration numbers before an operator may list and to cancel bookings for unregistered operators. Ottawa allows listings only on platforms registered with the City and requires the permit number on every listing, and Toronto, London and The Blue Mountains also require the number in all advertisements.

Fees

Who qualifies

• Principal residence only in Toronto, Ottawa, Mississauga, Brampton, Hamilton and London; investment properties are excluded.
• Zoning must allow the use: Niagara Falls permits vacation rental units only in its Tourist Commercial, General Commercial and Central Business zones, and The Blue Mountains only in zones where short-term accommodation is a listed use.
• Written permission from the landlord or condominium board where the home is rented or in a condominium (Mississauga and London).
• Liability insurance: $2 million in Mississauga and Brampton, $1 million in Hamilton, and a certificate of insurance in London and The Blue Mountains.
• Fire safety checks: inspection before issue in Mississauga, Hamilton and The Blue Mountains, and from 31 March 2026 in London.

How to apply

1. 1 Check the municipality's zoning and its principal residence rule first: most large cities license only the home the host lives in.
2. 2 Gather proof of principal residence (utility bills or tax documents), photo identification, insurance and, where required, a police record check and landlord or condominium board consent.
3. 3 Apply through the city's online portal or by email (Brampton and Niagara Falls accept emailed applications); Mississauga, Hamilton and London schedule a City inspection.
4. 4 Pay the fee, receive the licence or registration number, and show it on every listing.
5. 5 Register for the municipal accommodation tax with the city or its collection agent where the host collects it.

Permit rules

Toronto: registration at $390 a year

Toronto operators must register with the City and renew each year; the registration and renewal fee is $390 for 2026, and the number must appear in every advertised listing.¹² Applies to: Toronto

Toronto: platforms are licensed and charged per night

Platform companies such as Airbnb need a Toronto licence costing $10,816 a year plus $1.62 for every short-term rental night booked, and must validate registration numbers and cancel bookings for unregistered operators.¹³ Applies to: Toronto

Ottawa: host permit at $123 for two years

Ottawa hosts need a City-issued host permit for their principal residence at $123 for two years ($65 administration fee plus $58 permit fee), and a separate $123 permit for two years to rent a rural cottage or home.^16,17,33 Applies to: Ottawa

Ottawa: permit number and guest limit on every listing

Ottawa hosts may list only through short-term rental platforms registered with the City and must show the permit number and the maximum number of overnight guests on all listings.¹⁸ Applies to: Ottawa

Mississauga: licence at $283 a year

The Mississauga licence costs $283 a year and is issued after a City inspection; renewal is annual.²⁰ Applies to: Mississauga

Brampton: $150 licence and $2 million insurance

Brampton charges $150 for a new licence application or a renewal and requires general liability insurance of at least $2 million per occurrence.⁴ Applies to: Brampton

Zoning decides where rentals are allowed

The Planning Act does not address short-term rentals directly: each municipality decides through its zoning by-laws whether renting a dwelling is a permitted use, which is why Niagara Falls and The Blue Mountains restrict rentals to designated zones.⁷

Toronto: principal residence only

Toronto allows short-term rentals only in the operator's principal residence, one registration per dwelling unit, and a tenant does not need the landlord's consent.¹² Applies to: Toronto · In force since September 30, 2024

Ottawa: short-term rental within your principal residence

Ottawa's zoning permits a short-term rental as a temporary secondary use within the operator's principal place of residence; an additional dwelling unit or coach house qualifies only when its exclusive resident operates it as their principal residence.^3,16 Applies to: Ottawa

Mississauga: licence only for the home you live in

Mississauga issues a short-term rental licence only for a place the operator lives in, to rent all or part of it while away or while present; investment properties cannot be licensed.²⁰ Applies to: Mississauga

Mississauga: condominium board permission

A Mississauga host living in a condominium unit must provide proof of the condominium board's permission, and a tenant needs the owner's authorization to operate.²⁰ Applies to: Mississauga

Brampton: principal residence, 180 nights a year

Brampton limits hosts to their principal residence, with rentals under 28 consecutive days, at most 180 nights a calendar year, and no more than three bedrooms rented individually.^4,25 Applies to: Brampton

Hamilton: principal residence, one licence per operator

Hamilton licenses short-term rentals only in the operator's principal residence, issues no licence to a corporation, and allows one licence per operator.^5,27,29 Applies to: Hamilton · In force since December 1, 2023

London: your resident address only

London requires a business licence for any rental of 28 days or less and allows it only at the host's resident address, or in one other legally established unit on the same property, whether the host owns or rents.³⁰ Applies to: London · In force since February 1, 2023

Niagara Falls: vacation rental units only in commercial zones

Niagara Falls licenses vacation rental units, where the owner does not live on site, only in its Tourist Commercial, General Commercial and Central Business zones, with a maximum of three bedrooms.²² Applies to: Niagara Falls

The Blue Mountains: licensed rentals only in zoned areas

The Blue Mountains allows licensed short-term accommodation only in the specific areas zoned for it, shown on the Town's zone map (any RR zone), and has a moratorium on new licences outside the exception zone.³¹ Applies to: The Blue Mountains

1. 1. Toronto

   City of Toronto

   Toronto allows short-term rentals only in the operator's principal residence and requires an annual City registration of $390 (2026). An entire home may be rented for at most 180 nights a year, and the registration number must appear on every listing.^12,14,15,34

   • Principal residence only; one registration per dwelling unit.
   • Entire home capped at 180 nights per calendar year; up to three bedrooms for unlimited nights.
   • Registration and renewal fee $390 (2026), rising each year.
   • Municipal Accommodation Tax of 6% since 1 August 2026, collected by Airbnb; operators still file a MAT report.

2. 2. Ottawa

   City of Ottawa

   Ottawa requires a City host permit to rent a principal residence, or part of it, for fewer than 30 consecutive nights. The permit costs $123 for two years, and hosts may list only through platforms registered with the City.^{3,16,17,18,19,33,34}

   • Principal residence only in the urban area; cottage rental permit for rural homes.
   • Host permit $123 for two years; separate $123 cottage rental permit.
   • Permit number and maximum guests on every listing; list only on registered platforms.
   • Municipal Accommodation Tax of 6% since 1 January 2026, collected by Airbnb.

3. 3. Mississauga

   Region of Peel

   Mississauga licenses short-term rentals only in the operator's primary residence, for stays of up to 30 days in a row and no more than 180 days a year. The licence costs $283 a year and needs $2 million of liability insurance, and operating without one can bring a fine of up to $100,000.^20,21,34

   • Primary residence only; no licence for investment properties.
   • Stays of 30 days or less, 180 days a year at most.
   • Licence $283 a year, issued after a City inspection.
   • Liability insurance of $2 million naming the City as additional insured.

4. 4. Niagara Falls

   Niagara Region

   Niagara Falls licenses vacation rental units, where the owner does not live on site, only in its Tourist Commercial, General Commercial and Central Business zones, with at most three bedrooms. A pilot for owner-occupied short-term rentals in residential areas stopped taking applications on 30 September 2026 while Council decides whether to continue it.^22,23,24

   • Vacation rental units not permitted in residential zones; allowed only in the TC, GC and CB zones.
   • Maximum three bedrooms; fire inspection, insurance and a parking plan come with the application.
   • Fines up to $50,000 for a first offence and $100,000 for each later offence.
   • Municipal Accommodation Tax of 4%, rising to 5% on 1 April 2027, registered and remitted by the operator.

5. 5. Brampton

   Region of Peel

   Brampton licenses short-term rentals only in the host's principal residence, for stays under 28 consecutive days and no more than 180 nights a year. The licence fee is $150 and the host must carry $2 million of liability insurance.^4,25,26

   • Principal residence only; investment properties are no longer permitted.
   • Under 28 consecutive days, 180 nights a year, no more than three bedrooms rented individually.
   • Licence $150 for a new application or renewal; expires 30 September.
   • Fines of $500 to $100,000 per offence on conviction.

6. 6. Hamilton

   City of Hamilton

   Hamilton licenses short-term rentals only in the operator's principal residence, with one licence per operator and none for corporations. A new entire-dwelling licence costs $953.80 in total and $533.80 to renew, a rooms-only licence $238.80 and $210.80, and a 4% Municipal Accommodation Tax applies from 1 July 2026.^5,27,28

   • Principal residence only; one licence per operator, none for corporations.
   • Stays under 28 consecutive days; two persons per sleeping room.
   • Entire dwelling $953.80 to start and $533.80 to renew; rooms only $238.80 and $210.80.
   • Insurance of $1 million; fire escape plan, smoke alarms and carbon monoxide alarms.

7. 7. London

   City of London

   London requires a City business licence for any rental of 28 days or less, and the rental must be at the host's resident address, whether owned or rented. From 1 October 2026 each provider is limited to one short-term accommodation and one licence.³⁰

   • Resident address (principal residence) only; landlord and condominium board authorization where applicable.
   • From 1 October 2026, one short-term accommodation and one licence per provider.
   • Licence $201 a year; $351 one-time property standards and fire safety inspections.
   • Licence number in all advertisements; unhosted rentals up to five bedrooms.

8. 8. The Blue Mountains

   Grey

   The Blue Mountains licenses short-term accommodation only in the areas zoned for it (any RR zone on the Town's map). A Type A licence costs $2,500 for a two-year term, and the Town has placed a moratorium on new licences outside the exception zone.^31,32

   • Short-term accommodation only where zoning lists it as a permitted use (any RR zone).
   • Type A licence $2,500 for two years, plus $80 eligibility inquiry and $60 application fees.
   • Moratorium on new Type B licences outside the exception zone.
   • Licence number on all advertisements; insurance certificate, fire safety plan and a fire inspection.

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.
• A municipal accommodation tax account where the host collects the tax: the Ontario Restaurant Hotel & Motel Association portal in London, Hamilton and Niagara Falls, and the Town's online process in The Blue Mountains.
• A quarterly Toronto MAT report, which operators must file even when Airbnb collected the tax or no tax was due.
• The municipal licence, registration or permit where one is required.^{8,10,15,28,34}

No provincial licence: municipalities set the rules

Ontario gives municipalities broad powers under the Municipal Act, 2001 and the City of Toronto Act, 2006 to license and regulate short-term rentals, so each city decides who may host and on what terms. The province does not run a host registry.^7,35

Municipalities may levy an accommodation tax

Since 1 December 2017 every single-tier and lower-tier municipality may impose a tax on the purchase of transient accommodation by by-law, which is why the rate and the collector differ by city.^1,7 In force since December 1, 2017

Guest stays fall outside the Residential Tenancies Act

The Residential Tenancies Act does not apply to living accommodation intended for the travelling or vacationing public, including a vacation home or bed and breakfast, so nightly guests are not tenants.^2,35

Carbon monoxide alarms on every storey from 2026

Under the Ontario Fire Code a house 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. Building owners are responsible for compliance.^11,35 In force since January 1, 2026

What counts as short-term differs by city

Toronto, Brampton and Hamilton regulate rentals of under 28 consecutive days, Ottawa under 30 consecutive nights, Mississauga 30 days or less, and London and Niagara Falls 28 days or less. HST applies to stays of up to 30 nights.^{12,16,20,23,25,27,30}

Toronto: 180 nights a year for an entire home

A Toronto host can rent up to three bedrooms for an unlimited number of nights a year, or the entire home for at most 180 nights per calendar year.¹² Applies to: Toronto

Mississauga: 30 days at a time, 180 days a year

A Mississauga short-term rental is a rental of all or part of the primary residence for no more than 30 days in a row and up to 180 days in total each year.²⁰ Applies to: Mississauga

Mississauga: $2 million liability insurance

Mississauga applicants must hold commercial general liability insurance with a per-occurrence limit of at least $2 million naming the City as an additional insured.²⁰ Applies to: Mississauga

Hamilton: two guests per sleeping room, $1 million insurance

Hamilton limits overnight guests to two persons per sleeping room (children aged two or younger are exempt) and requires host or commercial general liability insurance of at least $1 million per occurrence.²⁷ Applies to: Hamilton

• Toronto: on conviction after a court summons, a fine of up to $100,000, or up to $10,000 for each day the violation continues.¹²
• Mississauga: operating without a licence can bring a fine of up to $100,000 under the licensing by-law.²⁰
• Brampton: a fine of at least $500 and up to $100,000 for an offence under the Short-Term Rental By-law, with daily fines of up to $10,000 for a continuing offence.⁴
• Niagara Falls: operating or advertising a vacation rental unit without a licence can bring a fine of up to $50,000 for a first offence and up to $100,000 each time after that.²²

1. April 1, 2027 Upcoming
   Niagara Falls accommodation tax rises from 4% to 5%

   Niagara Falls sets its Municipal Accommodation Tax at 4% of the room rate from 1 April 2026 and 5% from 1 April 2027.²⁴

2. February 7, 2027 Upcoming
   Ottawa's short-term rental zoning section is set to be repealed

   Section 121A of Ottawa's Zoning By-law 2008-250, the zoning provision that permits a short-term rental within the operator's principal place of residence, states that it is repealed on 7 February 2027. The City's new Zoning By-law 2026-50, enacted on 11 March 2026, is mostly in force.³

3. October 1, 2026
   London limits each provider to one short-term accommodation

   From 1 October 2026 each provider may hold one short-term accommodation, one provider licence and one ownership interest in a dwelling unit used as a short-term accommodation. Until 30 September 2026 a provider could register up to two at the same address.³⁰

4. September 30, 2026
   Niagara Falls closes its owner-occupied rental pilot to applications

   The 14-month pilot allowing owner-occupied short-term rentals in a dwelling unit on the same property as a principal residence, capped at 100 licences, stopped taking applications on 30 September 2026 while Council decides whether to continue it.²³

5. August 1, 2026
   Toronto's accommodation tax returns to 6%

   The temporary 8.5% rate for the Municipal Accommodation Tax ended on 1 August 2026; operators collect 6% on stays beginning that day.¹⁴

6. July 1, 2026
   Hamilton applies its 4% accommodation tax to short-term rentals

   From 1 July 2026 licensed short-term rental operators in Hamilton collect and remit a 4% Municipal Accommodation Tax on stays of 29 consecutive days or less; platforms do not collect it for them.²⁸

7. March 31, 2026
   London requires inspections for every short-term accommodation

   From 31 March 2026 all short-term accommodations in London must pass a property standards inspection and a fire safety inspection.³⁰

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

   Changes to the Ontario Fire Code that took effect on 1 January 2026 require carbon monoxide alarms on every storey of a home with a fuel-burning appliance, fireplace or attached garage.¹¹

9. January 1, 2026
   Ottawa's accommodation tax rises to 6%

   The Municipal Accommodation Tax in Ottawa is 6% from 1 January 2026, up from 5%.¹⁹

10. January 6, 2025
    The Blue Mountains introduces a 4% accommodation tax

    The Town's 4% Municipal Accommodation Tax took effect on 6 January 2025 and covers short-term rental accommodations.³²

11. January 1, 2024
    Brampton introduces a 4% accommodation tax

    Brampton's Municipal Accommodation Tax of 4% applies from 1 January 2024 to accommodations of 30 days or less, including short-term rental accommodations.²⁶

12. January 1, 2024
    Hamilton begins enforcing its short-term rental licensing by-law

    Hamilton required short-term rental operators and brokers to apply for a business licence from 1 December 2023, with enforcement beginning on 1 January 2024 and rentals limited to the operator's principal residence.²⁹

Estimate what a home could earn

1. 1. Municipal Act, 2001, S.O. 2001, c. 25 (Part XII.1, Power to Impose Transient Accommodation Tax) · e-Laws, Government of Ontario
2. 2. Residential Tenancies Act, 2006, S.O. 2006, c. 17 · e-Laws, Government of Ontario
3. 3. Zoning By-law 2008-250, Short-term Rental Provisions (Section 121A) · City of Ottawa
4. 4. Short-Term Rental By-law 165-2021 (office consolidation) · City of Brampton
5. 5. Licensing business reference guide (revised January 20, 2026) · City of Hamilton
6. 6. O. Reg. 435/17: Transient Accommodation Tax · e-Laws, Government of Ontario
7. 7. The Home-Sharing Guide for Ontario Municipalities · Ontario Ministry of Finance
8. 8. Charge and collect the GST/HST: which rate to charge · Canada Revenue Agency
9. 9. GST/HST for digital-economy businesses: Overview · Canada Revenue Agency
10. 10. Who needs to register for GST/HST · Canada Revenue Agency
11. 11. Carbon monoxide safety · Government of Ontario
12. 12. Short-Term Rental Operators/Hosts · City of Toronto
13. 13. Short-Term Rental Companies · City of Toronto
14. 14. Municipal Accommodation Tax (MAT) · City of Toronto
15. 15. Short-Term Rental Municipal Accommodation Tax · City of Toronto
16. 16. Short-Term Rentals · City of Ottawa
17. 17. Requirements for a short-term rental host · City of Ottawa
18. 18. Rules for short-term rental hosts · City of Ottawa
19. 19. Hotel and short term accommodation tax: for owners · City of Ottawa
20. 20. Apply for a short-term rental accommodation licence · City of Mississauga
21. 21. Municipal Accommodation Tax · City of Mississauga
22. 22. Vacation Rental Units · City of Niagara Falls
23. 23. Owner Occupied Short Term Rentals · City of Niagara Falls
24. 24. Municipal Accommodation Tax · City of Niagara Falls
25. 25. Renting in Brampton: Short-Term Rental Accommodations · City of Brampton
26. 26. Municipal Accommodation Tax · City of Brampton
27. 27. Short-Term Rentals · City of Hamilton
28. 28. Communication Update: Municipal Accommodation Tax (MAT) Implementation for Short-Term Rentals · City of Hamilton
29. 29. City announces new Short-Term Rentals By-law · City of Hamilton
30. 30. Short-term accommodation licensing · City of London
31. 31. Short Term Accommodation Licensing · Town of The Blue Mountains
32. 32. Municipal Accommodation Tax · Town of The Blue Mountains
33. 33. Short-Term Rentals - Fee schedule · City of Ottawa
34. 34. Tax collection and remittance by Airbnb in Canada · Airbnb Help Centre
35. 35. Ontario: laws and regulations for hosts · Airbnb Help Centre