Toronto has one of Canada’s strictest short-term rental frameworks. The city requires all STR operators to register (CAD $390/year) and limits rentals to your principal residence only — meaning investment properties and secondary homes cannot be listed short-term. Registration numbers must appear on all listings, and platforms are prohibited from listing unregistered properties. Here’s how to navigate it correctly.
📋 Toronto STR Permit — 2026 At a Glance
| Permit Name | City of Toronto Short-Term Rental (STR) Registration |
| Application Fee | CAD $390 per year |
| Annual Renewal | CAD $390 annually |
| Processing Time | 2–4 weeks |
| Primary Residence Only? | Yes |
| Licensing Difficulty | Moderate |
Do You Need a License to Short-Term Rent in Toronto?
Toronto’s STR registration program, administered by the City of Toronto under its Short-Term Rental Bylaw, requires all operators to register annually for CAD $390. The most important restriction: short-term rentals are permitted only in a host’s principal residence — the home where they live. Government-issued ID must match the property address. After registration, operators must collect and remit the Toronto Municipal Accommodation Tax (MAT) at 8.5% on a quarterly basis through the City’s online portal. Platforms like Airbnb and VRBO cannot list properties without a valid registration number — enforcement is conducted jointly with the platforms.
How to Get a Toronto Short-Term Rental Permit: Step by Step
- Confirm the property is your principal residence (government ID must match the address).
- Register online through the City of Toronto’s STR portal at toronto.ca/STR. Provide your name, property address, contact information, and government ID matching the property address.
- Pay the CAD $390 annual registration fee.
- Receive your STR registration number — display it prominently on all listing platforms.
- Set up your Municipal Accommodation Tax (MAT) account through the City of Toronto’s revenue portal. MAT is remitted quarterly at 8.5% of gross rental revenue.
- Renew registration annually.
Toronto Short-Term Rental Fees (2026)
| Fee | Amount | Notes |
|---|---|---|
| Annual Registration | CAD $390 | Annual |
| Municipal Accommodation Tax (MAT) | 8.5% of gross revenue | Quarterly remittance |
| Canada HST (Ontario) | 13% | If annual revenue exceeds CAD $30,000 |
CAD $390 is approximately USD $290 at current exchange rates. Ontario HST (13%) on rental revenue applies if your total STR income across all businesses exceeds CAD $30,000 in a 12-month period — you must register for a GST/HST number if this threshold is reached.
Key Rules & Restrictions for Toronto Hosts
- Principal residence only — investment properties and secondary homes are not eligible.
- Government-issued ID must match the STR property address at registration.
- Registration number must appear on all listing platforms — platforms cannot display unregistered properties.
- Municipal Accommodation Tax (MAT) at 8.5% must be remitted quarterly.
- Maximum rental period: entire home can be rented up to 180 nights/year; rooms in occupied homes have no limit.
- Guests may not exceed the number of rooms intended for sleeping multiplied by 2, plus 2.
Taxes Short-Term Rental Hosts Owe in Toronto
Toronto Municipal Accommodation Tax (MAT): 8.5% on gross rental revenue, remitted quarterly. Ontario HST: 13% if annual revenue exceeds CAD $30,000 (GST/HST registration required). Airbnb and VRBO collect and remit MAT automatically for Toronto hosts; GST/HST above the threshold is typically the host’s responsibility.
Penalties for Operating Without a Permit in Toronto
Operating without registration: CAD $1,000/day. Listing on a platform without a valid registration number: platform must delist the property. Failure to remit MAT: City enforcement, back taxes + 20% penalty. Renting a non-principal residence: registration revocation and daily fines.
How HostStarter Handles Toronto STR Compliance
Keeping pace with Toronto’s permit requirements — renewals, inspections, tax remittance, and ordinance updates — is a significant ongoing commitment. HostStarter’s full-service property management includes complete compliance handling: we track deadlines, coordinate inspections, ensure your listing always displays a valid permit number, and alert you to regulatory changes before they impact your revenue.
Get a free Toronto revenue estimate from HostStarter →
Frequently Asked Questions
Do I need a permit to run an Airbnb in Toronto?
Yes. Toronto requires annual registration (CAD $390/year) for all STR operators, and only your principal residence — the home where you live, with matching government ID — is eligible. Investment properties cannot be legally listed short-term in Toronto.
How much does a short-term rental permit cost in Toronto?
The annual registration fee is CAD $390 (approximately USD $290 at current exchange rates).
How long does it take to get an STR license in Toronto?
Toronto registration applications are typically processed in 2–4 weeks.
What taxes do Airbnb hosts owe in Toronto?
Toronto hosts owe the Municipal Accommodation Tax (MAT) at 8.5% of gross revenue, remitted quarterly. If annual revenue exceeds CAD $30,000, you must also register for and remit Ontario HST (13%). Airbnb and VRBO collect and remit MAT automatically.
What are the penalties for operating an unlicensed Airbnb in Toronto?
Operating without a registration number: CAD $1,000/day. Platforms are required to delist unregistered properties. Renting a non-principal residence as an STR is grounds for registration revocation and ongoing daily fines.