Short-term Rentals (less than 28 days)

Residents and property owners are renting out rooms or entire units for short periods (less than 28 days) in growing numbers across the city, facilitated by the rise of online platforms such as AirBnB, VRBO, etc.

Currently, short-term rentals are not permitted in Toronto.

On December 7, 2017, and January 31, 2018, City Council approved the regulation of short-term rentals in Toronto. The new rules, which require short-term rental companies to obtain a licence and short-term rental operators to register with the City and pay a Municipal Accommodation Tax of 4%.

However, the City’s zoning bylaw amendments to permit short-term rentals as a use have been appealed to the Ontario Municipal Board (OMB). They are therefore not in force. The OMB has scheduled a two-day hearing on August 30 and 31, 2018.  The City does not expect to receive a decision from the OMB for at least eight weeks after the hearing.

Therefore, the regulations for short-term rentals will not come into force until after the appeal decision is reached.

If the City receives a positive decision at the OMB, the short-term rental regulations will come into effect soon after. Individuals will be given a period of time to submit applications for a licence or registration and the 4% tax will be implemented. More information on what is required to collect and remit the tax will be available at that time.

If you would like to receive updates about the short-term rental registry and licensing program, contact to be added our mailing list.

For more information, see Chapter 547, Licensing and Registration of Short-term Rentals.

To report an issue, contact 311.

Key Points of the New Rules (Not Yet in Effect)

  • short-term rentals are permitted across the city in all housing types in residential and mixed-use zones
  • people can host short-term rentals in their principal residence only – both homeowners and tenants can participate
  • people can rent up to three bedrooms or entire residence
  • people who live in secondary suites can also participate, as long as the secondary suite is their principal residence
  • an entire home can be rented as a short-term rental if owner/tenant is away – to a maximum of 180 nights per year
  • people who rent their homes short term must register with the City and pay $50
  • companies such as Airbnb must become licensed and pay a fee of $5,000, plus $1/night booked through the platform
  • people doing short-term rentals must pay a 4% MAT on all rentals that are less than 28 consecutive days
  • companies such as Airbnb can enter into voluntary agreements to collect the MAT on behalf of those associated with their company