Short-Term Rental Licence toronto (2026 GUIDE)
TL;DR: You need a short-term rental licence (also searched as "short-term rental license toronto") to legally list your home on Airbnb in Toronto.
You must rent your principal residence only, register annually with the City, display your licence number on every listing, stay within the 180-night annual cap, and collect a 6% Municipal Accommodation Tax.
Do You Need a Short-Term Rental Licence in toronto?
Yes. Any host renting their home for stays under 28 consecutive nights must hold a valid short-term rental licence issued by the City of Toronto before listing on any platform. This requirement has been in force since 2021 under the City's STR bylaw and applies to both entire-home and private-room rentals.
This rule applies to
It does not apply to
- Long-term rentals of 28 consecutive nights or more
- Licensed hotels or bed & breakfasts
- Entire-home rentals (you rent out your full unit while away)
- Private room rentals within your home (you remain on the property)
If you are unsure whether your situation qualifies, confirm before listing. Operating without a licence risks fines, listing removal, and platform bans. For a full breakdown of the rules that govern your listing once active, see our Airbnb rules in Toronto guide.
Maximum stay threshold (28-night rule)
Short-term rentals are stays of 27 consecutive nights or fewer. Any booking of 28 consecutive nights or more falls under Ontario's Residential Tenancies Act and long-term rental rules — not the STR bylaw. Some hosts use 30+ night bookings strategically to avoid the 180-night cap. See the section below on non-qualifying properties for more on this.
Municipal Accommodation Tax (MAT) collection
Toronto requires a 6% MAT on all short-term rental bookings. Airbnb collects this tax from guests and remits it to the City on your behalf. You are still responsible for confirming the MAT is active on your account and keeping records of all bookings for potential City audits.
The 180-night annual cap
If you rent your entire home while you are away, you cannot exceed 180 nights per calendar year. This is the most frequently overlooked rule. A host who averages 75% annual occupancy would breach the cap in approximately 8 months.
Note: The 180-night cap applies to entire-home rentals only. If you are renting a private room while remaining in the property, this cap does not apply — but the principal residence requirement still does.
Note: The 180-night cap applies to entire-home rentals only. If you are renting a private room while remaining in the property, this cap does not apply — but the principal residence requirement still does.
Licence Number Displayed on All Listings
Once approved, you receive a registration number that must appear on every platform where you advertise your property — Airbnb, VRBO, Booking.com, and any other listing site. Airbnb now verifies registration numbers against the City's database; listings with missing or invalid numbers are deactivated automatically.
Annual Registration with the City
You must apply for and renew your STR licence toronto registration every year through the City's online portal. The City refers to this as airbnb registration toronto in its public materials. Missing your renewal deadline can result in automatic listing suspension, even if your listing has been active for years.
Principal Residence Only
You can only short-term rent the home you live in as your primary residence. The City defines this as the address where you spend the majority of your time and that matches your government-issued ID, tax records, and utility bills. What this means in practice: If you own a condo downtown but live in Scarborough, the downtown condo does not qualify. Investment properties, second homes, and vacant units cannot be licensed under Toronto's current STR bylaw.
toronto short-term rental licence requirements (2026)
To operate legally, you must satisfy all six of the following requirements. Missing even one can result in a rejected application or suspended listing.
what if my property does not qualify?
If your property is not your principal residence, you cannot legally operate a short-term rental in Toronto under the current bylaw. That does not mean you have no income options.
For non-principal-residence owners, mid-term rentals (30+ days) on platforms like Furnished Finder or VRBO can produce income without STR licensing requirements. Corporate tenants, people relocating to Toronto, and travelling professionals are consistent demand sources in this segment. We help owners assess which path makes financial sense for their specific property and goals. This is part of our Toronto Airbnb management onboarding review.
how much does a toronto short-term rental licence cost?
The City of Toronto charges approximately $300–$400 per year for an STR licence (verify current fee at toronto.ca before applying — the figure is subject to annual review). This is the direct registration cost only. Your total annual compliance cost will be higher once MAT and administrative time are included.
Full cost breakdown example — condo earning $4,000/month:
MAT is collected from guests, not paid from your own pocket — but it affects your effective nightly rate competitiveness and must be accurately tracked.
How to Apply for a Short-Term Rental LICENCE IN TORONTO?
- Step 1Confirm principal residence eligibilityBefore starting your airbnb permit toronto application, verify your property qualifies.
Gather:- Government-issued photo ID showing your address
- A recent utility bill, property tax notice, or CRA correspondence at that address
If your ID and tax records show different addresses, the City will likely reject or delay your application. - Step 2Gather your documentsPrepare the following before opening the online portal:
- Government-issued photo ID
- Proof of address (utility bill or property tax notice dated within 6 months)
- Property insurance details
- Property address and unit number
- Step 3Apply via the City of Toronto's online portalSubmit your application at the City's official STR portal (linked from toronto.ca). You will enter:
- Property and unit details
- Owner and host contact information
- All supporting documents as uploads
- Step 4Receive your registration numberProcessing typically takes 2–4 weeks from a complete, accurate submission. Once approved, the City issues your str licence toronto registration number by email. Store this number — you will need it for Step 5 and every annual renewal.
- Step 5Add your licence number to all listingsLog in to every platform where your property is listed and enter the registration number in the designated licence field. On Airbnb, this is under your listing settings. On VRBO and Booking.com, it appears in the property compliance section.
Platforms cross-reference numbers against the City's active registry. A number that is valid but entered incorrectly (wrong format, missing dash) can still trigger deactivation. - Step 6Confirm MAT collection is activeIn your Airbnb host settings, verify that the 6% MAT is enabled for Toronto bookings. Airbnb handles collection and remittance to the City on your behalf, but you remain the responsible party under the bylaw. If you use VRBO or Booking.com, confirm their MAT collection settings separately — each platform handles remittance differently.
- Step 7Set up annual renewal remindersYour licence expires 12 months from the issue date, not on a fixed calendar date. Set a calendar reminder at the 10-month mark to begin renewal. The renewal process mirrors the initial application and requires updated documentation if your address or insurance details have changed.
Common Mistakes That Lead to Fines or LIsting removal
Listing a non-principal residence
Missing or incorrect registration number
Exceeding the 180-night cap
Failing to collect or remit MAT correctly
The most common and most penalised violation. The City cross-references applications against MPAC records, hydro accounts, and CRA data. Applicants who list a property where they do not demonstrably live full-time are denied or fined.
Your listing can be removed automatically by Airbnb if your number is absent, expired, or entered with a formatting error. This can happen mid-booking season with no advance warning.
Hosts who run high occupancy — above 70–75% for the year — are at risk of breaching the cap without realising it. The City tracks nights through platform data sharing, not self-reporting. Build a simple spreadsheet to track your running night count from January 1 each year.
The 6% MAT is a tax obligation, not a platform technicality. Hosts who disable MAT collection or fail to confirm it is active can face back-taxes, interest, and penalties from the City.
We Handle the Toronto licensing process FOR YOU
The application process is straightforward when you know exactly what the City needs.
It becomes time-consuming when documents are incomplete, addresses don't match, or you're unsure which category your property falls into.
It becomes time-consuming when documents are incomplete, addresses don't match, or you're unsure which category your property falls into.
- Eligibility reviewWe confirm your property qualifies before you spend time on paperwork
- Document preparationWe tell you exactly what to gather and check it before submission
- Application filingWe submit on your behalf through the City portal
- Registration number setupWe add your number to every active listing
- MAT activationWe confirm MAT is correctly configured on each platform
- Annual renewalWe track your expiry date and manage renewal automatically
Most clients receive their registration number within 2–4 weeks of engaging us.
We also offer licensing assistance as a standalone service for hosts who self-manage their property but want help with the compliance side.
Frequently Asked QUestions
Yes. You must register with the City of Toronto and obtain a valid short-term rental licence before listing your property on Airbnb, VRBO, or any other platform. Registration is required for all stays of 27 consecutive nights or fewer. Operating without a licence exposes you to fines, listing removal, and potential platform bans that can take weeks to reverse.
The City of Toronto charges approximately $300–$400 per year for an STR licence (verify at toronto.ca before applying). This covers registration only. You must also account for the 6% Municipal Accommodation Tax on all bookings, which Airbnb collects from guests and remits to the City on your behalf. Total annual compliance costs for an active listing typically run $2,500–$3,500+.
Yes, but only if it is your principal residence — the address where you live full-time and that matches your government ID and tax records. If you own a condo as an investment property or rent it out while living elsewhere, it does not qualify under the current Toronto STR bylaw. The City verifies eligibility through MPAC and CRA records, not self-declaration.
If you rent your entire home while you are not present, you cannot exceed 180 nights per calendar year. This cap applies to the property, not per booking. A host running 75% annual occupancy would breach it in approximately 8 months. The City tracks nights through platform data-sharing agreements with Airbnb, not self-reporting. If you rent only a private room while remaining in the home, the 180-night cap does not apply.
A complete, accurate application is typically processed by the City within 2–4 weeks. The most common cause of delays is mismatched documentation — your ID address, utility bill address, and application address must all match exactly. Applications with missing documents are placed on hold and can take 6–8 weeks or longer if corrections are required.
The MAT is a 6% tax applied to all short-term rental bookings in Toronto. Airbnb collects it from guests and remits it directly to the City on your behalf. If you use VRBO or Booking.com, you must verify those platforms' MAT collection settings separately. You remain the legally responsible party for remittance even when a platform handles collection — so confirming it is active is essential before your first booking.
Only if the basement is part of your principal residence and not a separate, self-contained unit. A basement suite with its own entrance, kitchen, and living space is typically classified as a secondary unit under Ontario's Building Code — in which case it would need to be the occupant's own principal residence to qualify, not the upstairs owner's. Safety and zoning compliance is also required regardless. Contact the City's STR office directly if you are uncertain about your specific layout.
The City of Toronto has increased STR enforcement significantly since 2021 and works directly with platforms to identify unlicensed listings. Consequences include fines starting in the hundreds of dollars per day of non-compliance, listing removal by the platform, and potential application bans that prevent future registration. Hosts who are found operating an investment property as an STR — not a principal residence — can face the most severe penalties.
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