Airbnb Toronto Regulations 2026: What Hosts Need to Know About Short-Term Rental Laws
- Jane
- Jan 11, 2025
- 8 min read
Updated: Jan 2
Navigating Airbnb’s short-term rental regulations in Toronto can be overwhelming, especially with new updates rolling out constantly. This updated 2026 guide walks you through what you need to do to host legally in Toronto.
Whether you’re an experienced Airbnb host or just getting started, we will walk you through everything from registration and safety requirements to financial obligations and penalties for non-compliance.
This guide provides the most current, comprehensive framework for legal STR operation in Toronto as of January 2026, covering critical updates most hosts miss: API verification, annual inspections, multi-platform night tracking, guest registers, and tax implications when selling. Whether you're an experienced host or just starting, you'll find actionable steps to stay compliant, avoid $7,000+ fines for exceeding 180 nights, and protect your principal residence exemption.
Quick compliance checklist for 2026
Use this as your “do I have the basics covered” list (source):
Your listing is your principal residence and you can prove it with documents
You are registered with the City and your listing shows the correct registration number
You chose the correct rental type (entire unit vs rooms) and you are respecting the limits
You are ready for the City’s annual inspection and you know you must attend it yourself
You keep 3 years of transaction records, plus a guest register for the Ontario 2026 requirement
You handle MAT properly and file what the City requires
You told your insurer you are hosting
What Are Short-Term Rentals in Toronto, and How Are They Different from Long-Term Rentals?
According to the city of Toronto, short-term rentals in Toronto refer to renting out a property for less than 28 consecutive days, typically through platforms like Airbnb. These rentals are capped at 180 nights per year.
In contrast, long-term rentals involve leasing a property for 28 days or more, with no annual limits and governed by separate tenancy laws.
Section 1: Registration Requirements for Short-Term Rentals
To legally operate an Airbnb in Toronto, hosts must meet specific registration requirements and adhere to strict rules. Here’s how to get started:
A. Ensure the Property is Your Principal Residence
The Toronto airbnb regulations limit what can be used for short term rentals. The principal residence rule ensures that short-term rentals are operated only by residents of the property and not investors or corporations seeking short term rent income.
What Qualifies as a Principal Residence?
Your principal residence is the address where you:
Live for most of the year.
Receive bills, taxes, and official correspondence.
How does the city check?
You will need to show a valid Ontario Driver’s Licence / Ontario Photo Card with the property address. On request, you may also be required to provide two additional documents to prove principal residence and even attend an in-person interview. Other documents which may be requested:
Utility bill (<60 days old)
Property tax notice
Home insurance policy
Recent paystub
Lease agreement (tenants)
Vehicle registration
If you cannot prove that the property is your principal residence, your application will be denied. With that being said, many hosts list their property address as their primary residence despite living somewhere else.
New Enforcement Rules (updated 2026):
One Registration Per Dwelling: Only one host per dwelling can register, with priority given to the host holding the longest active registration.
Prevention of Dual Registrations: This change aims to eliminate cases where multiple hosts register the same property under different names to exceed rental limits.
If a registration is revoked, no one can apply for a new registration at that address for one year.
City now verifies principal residence during mandatory annual inspections.
B. Choose your rental type carefully: entire unit vs partial unit
Previously, some hosts would create multiple listings for the same property. For example, they would host one as an entire unit and others as shared rooms within the house.
This allowed them to bypass the 180-day limit by switching to shared-room listings once they reached the cap for entire-unit rentals. However, the City of Toronto has addressed this loophole with the updated 2026 regulations.
Upon signing up on a platform, hosts must now choose between two rental types:
Entire-Unit Rentals: Renting out your entire property, limited to 180 nights per calendar year.
Partial-Unit Rentals: Renting out individual rooms while you live in the home. There is no limit on the number of nights for partial-unit rentals.
Example, you can only advertise one fewer bedroom than the total bedrooms in your home (e.g., in a 4-bedroom house you may list up to 3). You can rent a maximum of three bedrooms at the same time.
Note: If you own a house with a basement suite (secondary suite) and you live upstairs, you can only STR the part you live in, not the other unit. If you live in the secondary suite, then the secondary suite is the only part eligible for STR
Once you choose a rental type, it cannot be changed during the registration period. Select the type that aligns with your hosting goals. Toronto states you can change your status during renewal, so plan your choice around your next year strategy.
C. Register with the City of Toronto
To operate legally, you must register as a short-term rental operator. Here’s what you’ll need:
A copy of a government-issued ID showing the property address.
Proof of principal residence, such as utility bills or tax documents.
Confirmation that your condo board or lease agreement permits short-term rentals, if applicable.
You can apply online through the City of Toronto’s website and will receive a registration number that must be included in all rental listings and advertisements.
Registration Fees
Starting January 1, 2025, the annual registration fee for short-term rentals in Toronto has increased to $375, a significant jump from previous years. This fee is mandatory for all Airbnb hosts to register with the city and must be renewed each year to maintain compliance. Failure to having a registration will prevent you from listing your place on platforms like Airbnb.
Section 2: Operating Requirements for Short-Term Rentals
Toronto airbnb regulations also care about the safety of renters. For such reason, the city introduced laws that require hosts to post safety information in their toronto airbnb property.
A. Provide A Physical Emergency Plan To Guests
This is likely one of the most overlooked airbnb regulation. Every Airbnb listing must include a clearly posted fire safety plan for guests to see during emergencies. It should include the following information:
Fire related information:
• Exit routes.
• Fire extinguisher locations.
• Emergency procedures for guests.
Emergency numbers:
• Your contact information (phone number) in case of a sudden emergency (e.g. plumbing issue, or flooding).
• Local emergency services numbers, such as 911 as some guests may come from outside of north america.
B. Record-Keeping Requirements
Hosts must keep detailed records of all bookings, including:
• Dates and durations of each stay.
• Prices charged.
• Guest contact information.
These records must be kept for at least three years and made available for city inspections upon request.
C. Be ready for annual compliance inspections (2026)
Toronto states that registered short term rentals can be inspected on an annual basis.
Here is what matters operationally:
The operator must attend. You cannot send a property manager or proxy.
Inspectors can ask for documents and verify principal residence status
Have these ready before the City contacts you:
Working smoke alarms and CO alarms, tested annually and after tenancy changes
A visible fire extinguisher and clear exit paths
An exit diagram posted for guests
Emergency contact notice posted with 911 instructions
2 to 3 proof documents for principal residence (examples include paystubs, lease, tax notice, vehicle registration)
3 years of transaction records available quickly
Your listing details match your registration record
Section 3: Financial Responsibilities for Hosts
Municipal Accommodation Tax (MAT)
Toronto imposes an 8.5% Municipal Accommodation Tax (MAT) on all short-term bookings effective June 1 (previously 6%).
What If You Use Other Platforms?
If you list your property on platforms like Vrbo or Booking.com, you are responsible for:
1. Collecting the 6% MAT from your guests.
2. Remitting the tax to the City of Toronto quarterly.
Failure to remit this tax can result in penalties, so ensure that your platform supports automatic tax collection or handle it manually.
Even if Airbnb collects and remits MAT, hosts must still file quarterly MAT reports, including periods with zero bookings.
Insurance Considerations
Short-term rental hosts must inform their insurance providers about their activities. Failing to do so may void your coverage in cases of property damage or liability.
Section 4: Penalties for Non-Compliance with Toronto Airbnb regulations
Non-compliance with Toronto’s short-term rental regulations can result in
1. Fines: Up to $100,000 per violation, including failure to register or remit taxes.
2. Listing Removal: Platforms like Airbnb may deactivate your listing if you fail to display a valid registration number.
3. Legal Action: Persistent violations can lead to inspections and legal consequences.
Penalties for Non-Compliance (2026 Figures)
Violation | Fine |
Unlicensed operation | $1,000 |
Advertising unlicensed | $1,000 |
Exceeding 180 nights | $700/night |
No principal residence proof | $700 |
No smoke alarm | $400 |
No exit diagram | $400 |
Example: 10 excess nights = $7,000 fines + delisting + possible revocation.
Court Penalties (Egregious Cases):
Maximum: $100,000 per offense
Daily: $10,000/day offense continues
Restitution: Repay illegal income
FAQs for Airbnb Hosts
Can I rent out a property that is not my primary residence?
No, short-term rentals in Toronto are only allowed in your principal residence, where you live for most of the year and receive mail or official correspondence. You must provide proof of this during registration. While you can rent it out for up to 180 days annually, you do not need to reside there during the rental period.
What happens if I don’t register with the city?
Failure to register your short-term rental can result in fines, deactivation of your listing on platforms like Airbnb, and other penalties enforced by the City of Toronto. All STRs require registration. Unlicensed = $1,000 fine + delisting + 12-month ban.
How often will the city do an audit/inspection on my Airbnb?
City now will do an annual inspection, which you have to attend. if there are any issues, you will have10-14 days to fix. Failure may result in possible revocation.
Do I need to collect taxes from guests?
Yes, all short-term rentals in Toronto are subject to a 6% Municipal Accommodation Tax (MAT). If you use Airbnb, the platform will collect and remit this tax automatically. For other platforms like Vrbo or direct bookings, you are responsible for collecting and remitting the tax to the City of Toronto.
What if my condo board doesn’t allow short-term rentals?
Even if city regulations allow short-term rentals, you cannot legally host if your condo board or lease agreement prohibits them. Always confirm your building’s policies before listing your property.
How long can I rent my property on a short-term basis each year?
Short-term rentals in Toronto are capped at 180 nights per year for entire-unit rentals. However, there is no limit on the number of nights for partial-unit rentals if you reside in the home while hosting.
Can I switch between entire-unit and partial-unit rentals during the year?
No, once you choose a rental type (entire-unit or partial-unit) during registration, you cannot switch between them until the next registration period.
What happens if I exceed the 180-night limit for entire-unit rentals?
Exceeding the limit could result in fines, suspension of your registration, or deactivation of your listing by the platform. Stay within the allowed nights to avoid penalties.
Will I Have to Pay 13% HST When Selling My Property if I Use It for Airbnb??
Not necessarily. Whether HST applies depends on how you’ve used the property:
Occasional short-term rentals (under 180 days per year): If you primarily live in the property and only rent it occasionally, it will likely remain your principal residence, and HST will not apply upon sale.
Frequent Airbnb rentals (commercial use): If you rent the property for short-term stays most of the year and generate significant income (more than 30K over 4 quarters), the CRA may classify it as commercial use, requiring you to pay 13% HST on the sale price under a deemed disposition rule.
How itsGLO Cleaning Can Help You with Managing Your Airbnb
At itsGLO Cleaning, we understand the challenges Airbnb hosts face when it comes to maintaining compliance and providing a great guest experience. Here’s how we can help:
Compliance Support: Assistance in keeping up to date with regulations
Enhance Guest Experience: We specialize in creating clean, welcoming environments that leave guests impressed. Our attention to detail helps you earn glowing reviews and repeat bookings.
Flexible and Affordable Services: With airbnb specific cleaning packages, we save you time and ensure your property is always guest-ready.
Ready to simplify your hosting experience? Contact ItsGLO Cleaning today for professional, hassle-free cleaning solutions. Let us handle the details so you can focus on growing your business.