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

Registration required

Yes

Taxes on a stay

19%

Yearly night cap

180 nights

Fine for hosting without a permit

Up to C$100,000

Active Airbnb listings

11,000

Latest rule change

Sep 1, 2026

The rules in brief

Who needs it

Anyone renting all or part of their home in Toronto for fewer than 28 consecutive days, including bed and breakfasts, whether they own or rent the home. It must be your principal residence.^1,9,11

Issued by

City of Toronto, Municipal Licensing & Standards (Short-Term Rentals team), under Municipal Code Chapter 547

Valid for

One year from the date the registration is approved; renew online up to 30 days before the renewal date

Processing

Some applications are approved automatically, but the City says processing may exceed 30 days after submission when volumes are high or an inspection is needed.

On listings

The number must appear on every listing

Platform checks

Platforms must validate each registration number against the City’s open data before an operator can list, show the number on the listing, and remove listings and cancel bookings for unregistered operators within 24 hours of a City request.

Fees

Who qualifies

• Age 18 or older
• The rental is your principal residence in Toronto (where you live and use the address for bills, identification, taxes and insurance) and you can show you live there
• A valid Ontario driver’s licence or Ontario photo card showing the rental address, plus two further documents proving principal residence
• One registration per dwelling unit, and the home must be in a residential area
• No conviction in the last five years for the listed bylaw, Fire Code or Building Code offences at the property, no outstanding orders and no overdue bylaw fines
• Not denied, revoked or refused a registration in the last 12 months
• If the home is a condominium, the condominium rules must allow short-term rentals

How to apply

1. 1 Choose entire-unit (you are away) or partial-unit (you stay and rent up to three bedrooms); the choice holds for the whole registration year.
2. 2 Gather an Ontario driver’s licence or Ontario photo card showing the rental address, two further documents proving principal residence, and the name and 24-hour phone number of an alternate emergency contact who has given written consent.
3. 3 Register online on the City’s short-term rental portal, certify the details, declare the home meets the Ontario Fire Code and Building Code, and pay the $390 fee by credit card.
4. 4 Expect the City to validate the application; it can ask for an in-person interview or an inspection before approving.
5. 5 Once approved, the registration number (STR-0000-XXXXXX) is emailed to you; add it, with your exact name, full address and unit number, to every listing.
6. 6 Tell the City within six days if any registration detail changes, and file the quarterly Municipal Accommodation Tax report.

Permit rules

Pick entire-unit or partial-unit for the whole registration year

Each registration is issued for one rental type only, entire-unit or partial-unit, and stays restricted to it for the whole term. You can switch type only when you renew, and nights already rented that year count toward the 180-night cap.^1,2,9 In force since January 1, 2025

Prove the home is your principal residence

You must show an Ontario driver’s licence or Ontario photo card with the rental address, and on request at least two further documents such as utility bills, a lease or vehicle insurance. The City can also ask you to attend an in-person interview, and you must supply evidence within 10 days of a request.^1,2,9 In force since September 30, 2024

Convictions and unpaid fines can block registration

The City must deny a registration or renewal if you were convicted in the last five years of certain bylaw, Fire Code or Building Code offences at the property, have outstanding property-standards, noise or similar orders, or have overdue bylaw fines.⁹

Show your registration number on every listing

The City-issued number (format STR-0000-XXXXXX) must appear in all advertisements and listings, and on any invoice, contract or receipt. Name, full address with unit number, and postal code on the listing must match the registration exactly or the platform can remove the listing and cancel bookings.^1,9 In force since August 31, 2020

Platforms must check numbers and take down unregistered listings

Licensed platforms such as Airbnb must validate each registration number against the City’s open data before an operator can list, and must remove non-compliant advertisements within 24 hours of a City request and cancel future reservations. Airbnb says listings without a valid number are blocked from hosting stays under 28 nights.^1,11,21 Applies to: platforms · In force since June 30, 2024

Renew every year or the registration is cancelled after 90 days

A registration lasts one year from approval and can be renewed up to 30 days early. Late fees of $11.27, $83.18 or $160.69 apply at 1 to 30, 31 to 60 and 61 to 90 days; after 90 days it is cancelled and you must apply again, and reservations and listings can be removed while it is lapsed.⁹

Revocation or cancellation locks the address for a year

The City can revoke a registration for breaking the bylaw, giving 10 days to respond. After a revocation you cannot re-apply for one year and nobody else can register your address for a year; cancelling your own registration also blocks the address for a year.^2,9 In force since September 30, 2024

Only your own principal residence

Short-term rentals are allowed only in the home where you live and use the address for bills, identification, taxes and insurance. You can have only one principal residence, so you cannot legally run more than one short-term rental.^1,9,10,19 In force since August 31, 2020

One registration per dwelling unit

Only one registration is allowed per dwelling unit, so two tenants or co-owners in the same home cannot each register it. The registration is tied to the address of your principal residence.^2,9 In force since September 30, 2024

Licensed multi-tenant house operators cannot register

Operators who hold a City multi-tenant house licence are barred from applying for a short-term rental registration.⁹ Applies to: multi-tenant house operators · In force since June 30, 2024

The home must be in a residential area

Your home has to sit in a residential area of the city. Bed and breakfasts continue under the existing zoning permissions for tourist homes and must register like other operators.⁹

Secondary, laneway and garden suites only if you live in them

You can host in a secondary suite, laneway suite or garden suite only when that suite is your principal residence. If you live in the main house you cannot rent the secondary suite or laneway suite separately, and in a duplex, triplex or fourplex you can rent only the unit you live in.^2,9,19 In force since June 30, 2024

Condo bylaws can ban short-term rentals

Condominium rules are left to the building: you must make sure your condominium’s bylaws and rules allow short-term rentals, and some condominium corporations prohibit them entirely.⁹ Applies to: condominium owners and tenants

Tenants can register, but get the landlord’s consent first

The City does not require renters to obtain their landlord’s consent to register. It advises tenants to make sure the lease allows short-term rentals or to get written consent, because a landlord who objects can apply to the Landlord and Tenant Board.⁹ Applies to: tenants

Short-term means fewer than 28 consecutive days

The bylaw covers any rental of all or part of a dwelling unit for fewer than 28 consecutive days in exchange for payment. Stays of 28 nights or more fall outside the registration rules, which Airbnb also confirms.^8,9,10,21 In force since August 31, 2020

Entire home: 180 nights a calendar year

A host registered for entire-unit rentals may rent the property for at most 180 nights per calendar year. Since 2025 the limit counts every short-term night at the address that year, whether it was rented as an entire unit or as rooms, and it resets on January 1.^1,2,8,9,19 Applies to: entire-unit registrations · In force since August 31, 2020

Rooms in your home: up to three bedrooms, no night cap

You can rent up to three bedrooms in your principal residence as a partial-unit rental for an unlimited number of nights a year, and the entire-home 180-night cap does not apply. A partial-unit host cannot rent out the entire dwelling unit at the same time.^1,8,9 Applies to: partial-unit registrations · In force since August 31, 2020

Advertise one fewer bedroom than the home has

A partial-unit host can advertise only one fewer than the number of bedrooms in the principal residence, so the host always keeps a bedroom.⁹ Applies to: partial-unit registrations · In force since January 1, 2025

Emergency contact, 9-1-1 information and exit diagram

You must give every guest an emergency contact who is reachable 24 hours a day, information on using 9-1-1 and an exit plan, and post a physical copy of the emergency contact and exit diagram in the rental for the whole stay. At registration you declare that the home meets the Ontario Fire Code and Building Code.^1,2,9 In force since June 30, 2024

Annual inspection with you present

Since January 2025 every approved registration is subject to an annual compliance inspection, and the operator must attend in person; a representative cannot attend for you. Failing to complete an inspection in a reasonable time can lead to revocation.⁹ In force since January 1, 2025

Keep transaction records for three years

Keep records of the nights rented, the nightly and total price charged and the rental type, and give them to the City on request. Ticket fines apply for not keeping complete records for 3 years or not providing them within 30 days of a City request.⁹

You stay liable when a manager runs the listing

A registered operator is legally liable for everything tied to the registration number, even if a co-host or property management company handles the listings. The City holds the operator, not the manager, responsible for fines and enforcement.⁹

Ask your insurer about short-term rental cover

The City sets no minimum insurance, but tells hosts to understand what a short-term rental means for their policy and to ask their insurer about a suitable product.⁹

File a MAT report each quarter, even when Airbnb collects

Registered operators must file a Municipal Accommodation Tax report online every quarter, even if the platform collected the tax or no nights were rented. The City can revoke a registration or refuse renewal if MAT is not reported and paid.^9,12,19 In force since January 1, 2021

Median nightly rate, booked nights

US$110

Taxes on that night (19%)

US$21

Guest pays, before Airbnb and cleaning fees

US$131

What the host still handles

• City of Toronto short-term rental registration, renewed every year (a permit, not a tax).
• Municipal Accommodation Tax reports: file online every quarter (due April 30, July 30, October 30 and January 30) even if Airbnb collected the tax or you had no bookings; collect and remit the 6% yourself on any booking made outside Airbnb.
• GST/HST: register with the Canada Revenue Agency once gross accommodation revenue passes $30,000 over four calendar quarters; below that, Airbnb collects HST from guests for you.^{3,12,13,14,15,16,20}

• A court conviction can bring a fine of up to $100,000, plus up to $10,000 for each day the offence continues and a special fine for any economic gain from the offence. Every director or officer of a corporation can face a fine of up to $100,000. The usual penalty for renting without registering is a $1,000 ticket.⁹
• Ticket fines of $1,000 apply to failing to register, renting or advertising a property that is not your principal residence, advertising without a registration number, and advertising or brokering an unregistered rental.⁹
• Ticket fines of $700 apply to renting an entire unit for more than 180 days and to failing to provide evidence of a principal residence; $400 to failing to notify the City of a change, to give guests emergency contact, 9-1-1 and exit-diagram information, or to obstructing an inspection; $300 to record-keeping failures.⁹
• The City can revoke a registration for breaking the bylaw after a 10-day response window, after which neither you nor anyone else can register that address for a year; existing bookings and listings can be cancelled and removed.⁹
• Platforms that broker unregistered rentals face $1,000 ticket fines and must remove listings within 24 hours of a City request; the City issued 84,678 takedown requests to platforms between 2021 and 2023.^11,19
• Not reporting or paying the MAT can cost you the registration or its renewal, and overdue tax carries interest at 1.25% a month; since September 1, 2026 a conviction under the MAT chapter can bring a fine of up to $100,000.^6,12

1. September 1, 2026
   Higher maximum fines for Municipal Accommodation Tax offences

   By-law 1150-2026, enacted July 30, 2026, sets the maximum fine for a knowing breach of the MAT chapter, and for a director or officer who concurs, at $100,000.⁶

2. August 1, 2026
   Municipal Accommodation Tax returns to 6%

   The temporary 8.5% rate ended on July 31, 2026. Hotels and short-term rental operators collect 6% on stays beginning August 1, 2026.^12,13,14

3. March 26, 2026
   MAT interest rule amended (By-law 207-2026)

   Interest on overdue MAT is 15% a year, calculated at 1.25% a month from the business day after the due date, deemed in force from February 11, 2025.⁷

4. June 1, 2025
   Temporary 8.5% Municipal Accommodation Tax begins

   By-law 1259-2024, enacted November 14, 2024, raised the MAT to 8.5% of the purchase price on a temporary basis for stays from June 1, 2025 to July 31, 2026.^5,14

5. January 1, 2025
   Phase three: entire-unit or partial-unit registration and a higher fee

   Hosts must register as entire-unit or partial-unit for the registration year, the 180-night limit counts all short-term nights at the address, partial-unit hosts advertise one fewer bedroom than the home has, and the registration and renewal fee increased. Annual compliance inspections apply to every approved registration from January 2025.^1,9

6. September 30, 2024
   Phase two: proof of residence, interviews, one registration per unit

   Hosts can be asked for two documents on top of their ID, called to an in-person interview and inspected; registrations are tied to the address, revoked addresses are blocked for a year, and only one registration per dwelling unit is allowed.⁹

7. June 30, 2024
   Phase one: clearer definitions, emergency diagram, faster revocation

   Definitions of short-term rental, principal residence and dwelling unit were revised, hosts must post the emergency contact and exit diagram, the revocation process was cut from 40 days to 10, and multi-tenant house operators can no longer register.^2,9

8. May 23, 2024
   Council enacts tighter short-term rental rules (By-law 503-2024)

   The by-law restricts a principal residence to a single dwelling unit, tightens advertising and platform verification duties, and requires each registration to be either partial-unit or entire-unit. It takes effect in three phases.^2,9

9. May 1, 2023
   Municipal Accommodation Tax rate set at 6%

   By-law 168-2023, enacted February 15, 2023, changed the MAT rate to 6% of the purchase price for hotels and short-term rentals from May 1, 2023.^3,4

10. January 1, 2021
    Municipal Accommodation Tax starts on short-term rentals

    Collection of the Municipal Accommodation Tax on short-term rentals began on January 1, 2021, with platforms able to collect it for operators under a voluntary collection agreement.^3,19

11. August 31, 2020
    Toronto’s short-term rental registration program starts

    After the licensing and zoning rules survived appeal, the registration program and fees began on August 31, 2020 for operators, alongside licensing of platforms such as Airbnb.¹⁹

Estimate what a Toronto home could earn

1. 1. Toronto Municipal Code, Chapter 547, Licensing and Registration of Short-Term Rentals (consolidated to 2025-01-01) · City of Toronto
2. 2. By-law 503-2024: amendments to Municipal Code Chapter 547 (enacted 2024-05-23) · City of Toronto
3. 3. Toronto Municipal Code, Chapter 758, Taxation, Municipal Accommodation Tax (consolidated to 2023-05-01) · City of Toronto
4. 4. By-law 168-2023: Municipal Accommodation Tax rate of 6% from 2023-05-01 · City of Toronto
5. 5. By-law 1259-2024: temporary Municipal Accommodation Tax rate of 8.5% from 2025-06-01 to 2026-07-31 · City of Toronto
6. 6. By-law 1150-2026: increased maximum fines, including for Chapter 758 (effective 2026-09-01) · City of Toronto
7. 7. By-law 207-2026: Municipal Accommodation Tax interest calculation · City of Toronto
8. 8. By-law 613-2018: Toronto Municipal Code Chapter 547, Short-Term Rentals, as first enacted · City of Toronto
9. 9. Short-Term Rental Operators/Hosts · City of Toronto
10. 10. Short-Term Rentals · City of Toronto
11. 11. Short-Term Rental Companies/Platforms · City of Toronto
12. 12. Short-Term Rental Municipal Accommodation Tax · City of Toronto
13. 13. Municipal Accommodation Tax: rates and exemptions · City of Toronto
14. 14. Municipal Accommodation Tax (MAT) · City of Toronto
15. 15. Platform-based short-term accommodation: GST/HST for digital-economy businesses · Canada Revenue Agency
16. 16. Sharing economy - Taxes and the platform economy · Canada Revenue Agency
17. 17. Short Term Rentals Registration (open data, updated daily) · City of Toronto Open Data
18. 18. Short Term Rental Registration & Enforcement overview (open data, updated monthly) · City of Toronto Open Data
19. 19. Short-Term Rental By-law Implementation Update (report for action, 2024) · City of Toronto
20. 20. Tax collection and remittance by Airbnb in Canada · Airbnb Help Center
21. 21. Toronto (responsible hosting and local rules) · Airbnb Help Center