Short-term rentals are allowed in Toronto as long as they meet the requirements of the City of Toronto. It is required that hosts have to register their primary residence, register with the city, display the registration number in all advertisements, and charge Municipal Accommodation Tax (MAT). This guide explains Toronto’s short-term rental regulations and Airbnb rules for 2026, including registration, the 180-night limit, taxes, and fines. It also explains how professional Airbnb management in Toronto can support hosts in meeting these requirements.
Requirement | 2026 rule |
Eligible property | Principal residence only |
Short-term rental | Stay of fewer than 28 consecutive days |
Registration fee | $390 per year, non-refundable |
Entire-home limit | 180 nights per calendar year |
Room rentals | Up to three bedrooms, no night limit |
Municipal Accommodation Tax | 6% |
Municipal Code Chapter 547 and its zoning bylaws regulate short-term rentals in Toronto. The City’s rules on Airbnb are not an outright ban. Instead, it only allows people to rent out a property in which they reside.
A short-term rental is defined as the whole or part of a dwelling unit that is rented for less than 28 consecutive days for compensation. Dwellings that are rented for a period of 28 days or more are not subject to the bylaw and are not required to register.
The bylaw was revised in stages from June 2024 to January 2025. The revision included more stringent residence verification, yearly inspection, a single registration per apartment, an increased fee, and an option for whole-unit or half-unit registration. Although the 90-day period is mentioned by some, that rule applies to Toronto in London, England.
Your principal residence is the home where you live and the address you use for bills, identification, taxes, and insurance. Only one can exist at a time, so investment properties and second homes cannot be rented short-term. Owners and tenants are both eligible, in any housing type.
Operators must select one registration type, which applies until renewal:
Nights are counted across both types. A home rented for 150 nights as a partial unit leaves 30 nights if the operator switches to an entire-unit registration. The count resets on January 1.
Secondary, laneway, and garden suites may be rented only when the suite itself is the operator’s principal residence.
Registration is the City’s term for the short-term rental licence that hosts commonly search for, and it is completed online before any listing is published.
Read more: City of Toronto: Short-Term Rental Operators/Hosts
Condominiums: Short-term rentals are permitted in condominiums by the City, but the corporation can prevent or limit them by using its declaration, by-laws, and rules. The host has to verify these before registering.
Tenants: The City doesn’t need the permission of the landlord to register, and it doesn’t enforce any terms of the lease. However, the landlord can file an application with the Landlord and Tenant Board in case the lease is violated. Consent from the landlord is recommended.
Co-hosts and property managers: The registered operator is responsible for all activities registered by him/her, not the property manager. Fines will be issued to the operator, not the property manager. Hosts who work with a short-term rental management company in Toronto can hand over daily operations, but legal responsibility stays with them. The operator should check the booking history regularly and answer any questions from the City personally.
The City enforces the bylaw through 311 complaints, platform data, and compliance audits. Registered rentals may be inspected annually, with the operator present. Airbnb also blocks Toronto listings that lack a valid registration number.
Offence | Ticket fine |
Failing to register | $1,000 |
Advertising without a registration number | $1,000 |
Renting or advertising a property that is not a principal residence | $1,000 |
Renting an entire unit for more than 180 nights | $700 |
Failing to provide evidence of principal residence | $700 |
Missing emergency contact, 911 information, or exit diagram | $400 each |
Failing to keep transaction records for three years | $300 |
Operators convicted after a court summons may face fines of up to $100,000, or up to $10,000 for each day a violation continues, plus a special fine reflecting economic gain. The City may also revoke a registration after allowing 10 days to respond. Following revocation, neither the operator nor anyone else may register that address for one year. Reviewing the common mistakes new short-term rental hosts make can help operators avoid most of these penalties.
Municipal Accommodation Tax: Operators collect and remit MAT at 6% on stays shorter than 28 consecutive days. Reports are due quarterly, within 30 days of quarter end, even when no nights were booked. A temporary 8.5% rate ran from June 2025 to July 2026 and ended on August 1, 2026, so guides quoting 8.5% are out of date. A platform that has signed a collection agreement with the City may collect MAT on the host’s behalf, but the host must still file the report. Confirm the current rate on the City’s MAT page before setting prices.
Source: City of Toronto: Short-Term Rental Municipal Accommodation Tax
GST/HST: Hosts with taxable revenue above $30,000 in a 12-month period must register for GST/HST.
Income tax: Since the 2024 tax year, the Canada Revenue Agency denies expense deductions for short-term rentals that do not meet applicable registration and licensing requirements. The denial is prorated by the number of non-compliant days, so an unregistered rental may be taxed on revenue with limited or no deductions.
This guide is general information and not legal or tax advice. Rules and fees change, so verify current requirements with the City of Toronto before acting.
Toronto permits short-term rentals in a principal residence, subject to annual registration, a 180-night limit for entire homes, 6% MAT, and enforcement that includes inspections and fines. Because the registered operator carries liability for every listing, accurate records and consistent listing details matter as much as the initial registration.
Stayfinity works with Toronto hosts to keep listings, records, and guest information aligned with City requirements, while the registered operator retains full oversight of the property. To discuss your rental, contact Stayfinity today.
