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 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 (MAT) of 4 per cent.

However, the City’s zoning bylaw amendments to permit short-term rentals as a use have been appealed to the Local Planning Appeal Tribunal (LPAT). They are therefore not in force. The LPAT had scheduled a two-day hearing for August 30 and 31, 2018, however at the hearing it was determined that two days was insufficient time for the proceedings. For that reason, the August 30 and 31, 2018 LPAT hearing was adjourned and re-scheduled for August 26, 2019. The hearing is ongoing, with closing statements scheduled for October 15, 2019.

The City’s 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 LPAT, the short-term rental regulations will come into effect. The implementation details will be subject to the results of the hearing. Individuals will be given advance notice to submit applications for a licence or registration and the 4 per cent 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 information about the short-term rental registry and licensing program, please sign up for E-updates below.

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

  • Short-term rentals are permitted across the city in all housing types in residential and the residential component of 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 pay a one-time licence application fee of $5,000 plus $1 for each night booked through the company.
  • People doing short-term rentals must pay a 4 per cent Municipal Accommodation Tax (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.

For more information, see the decisions made by City Council to adopt a new zoning bylaw permitting short-term rentals and a registration and licensing program for short-term rentals and a municipal accommodation tax.

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