The Host’s Guide to Airbnb Rules in Toronto
Last updated: May 2025
Toronto is the centre of the universe (at least according to Torontonians), the home of Canada’s teams, and one of the most diverse cities on the planet with some of the best food in North America. For years, Canadians and people from all over the world have been coming to Toronto for sports, concerts, and to visit this great international city on the edge of Lake Ontario.
With everything happening in the city, the Toronto City Council has passed specific Toronto Airbnb regulations to regulate and control short-term rentals here in the Six. So, let’s jump in and see the specifics around Airbnb rules in Toronto.
Don’t see the form to download our vacation rental agreement? Click here.
First, what’s considered a short-term rental in Toronto?
In Toronto, a short-term rental is considered all or part of a dwelling rented out for less than 28 consecutive days in exchange for payment.
Unlike other jurisdictions in Canada, Toronto does include bed and breakfasts within the definition of a short-term rental. However, hotels, motels, and student residences owned or operated by educational institutions are excluded from the rules.
Is Airbnb legal in Toronto?
This is the first question that comes to mind for many potential Airbnb owners in Toronto. And the answer is yes, Airbnb is completely legal in Toronto!
There are some Airbnb rules in Toronto that you need to follow, including getting a licence from the city, only running your Airbnb from your principal residence, and collecting tax from visitors. Still, overall, Toronto is a pretty lucrative market in which to own and operate an Airbnb.
From concerts to Jays games, Airbnbs in Toronto do well throughout the year, especially as the city’s hotels are charging high rates and tourists are looking for more authentic and alternative short-term stays in the city.
Airbnb rules in Toronto
Rules are a necessary evil, and in Toronto, there are some set rules that you need to follow to have an official Airbnb property operating in the city. Over the past several years, the city has updated its municipal bylaws to add new Airbnb rules in Toronto, the latest of which came into effect on January 1, 2025.
Here’s what you need to know.
Principal residence rule
First off, short-term rentals are only allowed at your principal residence in a residential area in the city.
Additionally, keep in mind that:
- You must declare if your short-term rental is an entire-unit or partial-unit rental.
- You can rent a secondary suite or laneway suite as long as the suite is in your principal residence.
Registration
The short-term rental needs to be registered with the city. You must pay your registration fee, which is $375, and provide the city with the following details:
- Valid government ID
- Two pieces of documentation, in addition to a government photo ID, to prove that the address is your primary residence
- Contact information and address
- Details of the rental
- Name and telephone number of an emergency contact
Maximum number of nights you can rent
According to Toronto short-term rental regulations, you can rent your property for a maximum of 180 nights per year if you are running an entire-unit rental.
In contrast, partial-unit rentals can rent out one bedroom less than the total number of bedrooms in the residence for unlimited nights per year. For example, if you have a four-bedroom house, you can rent out three bedrooms.
Good Operator Guide
Finally, you’ll need to follow the Good Operator Guide provided by the city. This includes providing all the emergency precautions the guide outlines, such as:
- An emergency contact person
- Information on calling 911
- An exit diagram
- Carbon monoxide and smoke alarms
Toronto Airbnb tax rules
As part of the short-term rental rules in Toronto, owners and operators need to collect and remit the Municipal Accommodation Tax (MAT) on behalf of the city. You will need to sign a Voluntary Collection Agreement with the City of Toronto, which obligates the collection of this 6% tax on all rentals.
However, the Toronto City Council has also confirmed that the MAT will increase to 8.5% from June 1, 2025 to July 31, 2026. This raise is designed to take advantage of the increase in tourists into the city for the upcoming FIFA World Cup 2026.
As part of this agreement, you need to file a MAT report to the City of Toronto for each reporting period, even if you did not rent out your short-term rental during that period.
FAQs about Airbnb rules in Toronto
Let’s explore some of the most frequently asked questions about Toronto short-term rental laws.
Can you rent out any home for an Airbnb in Toronto?
As long as your home is your primary residence and you follow all the necessary steps and rules, you can rent out your home as an Airbnb!
What is the registration fee for a Toronto Airbnb? Do you have to register every year?
The registration fee is $375. Yes, you need to renew your registration each year at a cost of $55.35.
What are the fines for breaking short-term rental laws in Toronto?
Per the city bylaws, if you do not comply with Toronto’s short-term rental rules, you may be liable to pay a fine of up to $100,000, or up to $10,000 per day if the offence continues. You may also be ordered to pay an amount greater than any revenue that you make from your listing.
Specific fine amounts based on the type of offense are as follows:
| Offence | Fine |
|---|---|
| Failing to keep a complete transaction record for 3 years | $300 |
| Failing to provide transaction records within 30 days of a request from the city | $300 |
| Failing to notify the city of a change in registration information | $400 |
| Failing to provide emergency contact information to a guest | $400 |
| Failing to provide information regarding 9-1-1 service to a guest | $400 |
| Failing to provide a diagram of the exit from the building | $400 |
| Obstructing an authorized inspection | $400 |
| Discriminating based on an enumerated ground | $500 |
| Refusing to serve a person accompanied by a service animal | $500 |
| Renting an entire unit for more than 180 days | $700 |
| Failing to provide evidence of principal residence | $700 |
| Failing to register a short-term rental | $1,000 |
| Advertising, facilitating or brokering an unregistered short-term rental | $1,000 |
| Renting or advertising property that is not a principal residence | $1,000 |
| Advertising a short-term rental without a registration number | $1,000 |
Manage your Toronto vacation rental with Lodgify!
Learning about Toronto Airbnb rules is an important part of hosting an Airbnb in this great city. Whether it’s understanding Toronto Airbnb laws dictating how many nights you can book, adhering to tax requirements, or maintaining emergency precautions, being informed and proactive will lead to a successful business. Hosting responsibly will both benefit you and contribute to the city’s growing short-term rental market.
And, of course, if you need help managing your Toronto Airbnb, Lodgify is here for you. Start a free 7-day trial to see firsthand how Lodgify can help you build a direct booking website, sync your listings across all your booking platforms, and automate your business.
Don’t see the form to download our vacation rental agreement? Click here.