Canada · Ontario
Short-term rental rules in Toronto
Legal regime
Toronto Municipal Code Chapter 547 (Licensing and Registration of Short-Term Rentals), adopted by By-law 613-2018 (in force 2019-11-18) and amended by By-law 503-2024 (2024-05-23). A short-term rental is the rental of all or part of a dwelling unit for less than 28 consecutive days. Operators must register with Municipal Licensing and Standards (MLS) and may only operate a short-term rental in their principal residence (§547-4.2). Short-term rental companies (platforms) must additionally obtain a company licence (§547-1.2). Maximum 180 nights per calendar year for entire-unit rentals (§547-4.1.1.D); no nightly cap for partial-unit rentals where the operator remains onsite.
Key parameters
- License required
- Yes
- Max nights/year
- 180
License process
Operator registration filed online with Municipal Licensing and Standards (MLS). Operator must declare entire-unit or partial-unit and supply principal-residence evidence on request. Registration is valid for one year and must be renewed on the anniversary date (§547-2.2). Initial registration fee and annual renewal fee: CAD $390 (renewal fee subject to annual increase per the City). Late renewal incurs an additional administration fee; failure to renew within 90 days cancels the registration and requires a new application. Fees are paid by the operator to the City and are not collected from guests.
Applicable taxes
-
Municipal Accommodation Tax (MAT)
Rate: 8.5% (temporary, 2025-06-01 to 2026-07-31; reverts to 6%) · Basis: Percentage of the price of accommodation, collected by the operator from the guest and remitted to the City (administered under Toronto Municipal Code Chapter 758).
Recent changes
-
2024-05-23
By-law 503-2024 amends Chapter 547: formalizes the entire-unit vs partial-unit registration distinction and codifies the 180-night-per-calendar-year cap on entire-unit rentals (§547-4.1.1.D, in force 2025-01-01). Principal residence restriction reaffirmed (§547-4.2).
-
2025-06-01
Municipal Accommodation Tax rate temporarily raised from 6% to 8.5% on transient accommodations, including short-term rentals, through 2026-07-31.
Official sources
- https://www.toronto.ca/community-people/employment-social-support/housing-support/short-term-rentals/
- https://www.toronto.ca/legdocs/municode/toronto-code-547.pdf
- https://www.toronto.ca/community-people/housing-shelter/rental-housing-rights-information/short-term-rentals/short-term-rental-operators-hosts/