Table Of Contents
Last Updated on September 18, 2025 by Fullhome Airbnb Manager
Summary
Toronto’s short-term rental (STR) regulations require hosts to register with the City, operate only from their principal residence, and comply with limits such as 180 rental nights per year. Operators must collect and remit a 6% Municipal Accommodation Tax (MAT) and keep accurate records. Fines for non-compliance can exceed $100,000. This guide explains the rules, licensing steps, and how FullHome helps Toronto Airbnb hosts stay compliant.
Running an Airbnb in Toronto can feel complicated. Between shifting bylaws, licensing rules, and hefty fines for non-compliance, many new and experienced hosts struggle to keep up. The city’s regulations are strict — and breaking them can cost more than just lost income.
This guide simplifies everything you need to know about Toronto short-term rental laws in 2025. We’ll cover who qualifies to host, how to get your STR license, the costs involved, and the penalties for getting it wrong. Plus, you’ll see how FullHome helps property owners handle compliance so they can focus on maximizing rental income.
Licensing Requirements for STR Hosts in Toronto
To legally operate a short-term rental in Toronto, every host must register with the City. The process is straightforward but requires accurate documentation and payment of fees.
🔹 Step 1: Confirm Eligibility
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You must be operating from your principal residence.
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The property must meet all building and fire code requirements.
🔹 Step 2: Gather Required Information
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Proof of residence (driver’s license, utility bill, or government ID showing the address).
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Contact information (name, email, phone number).
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Rental details (type of listing, estimated number of nights, platform used).
🔹 Step 3: Apply Online
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Applications are submitted through the City of Toronto’s online portal.
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Registration is valid for one year and must be renewed annually.
🔹 Step 4: Pay the Fee
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$53.22 (including HST) annual fee (as of 2025).
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Paid online during registration.
🔹 Step 5: Display Registration Number
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Once approved, you’ll receive a registration number.
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This must be included in all listings (Airbnb, VRBO, etc.).
🔹 Step 6: Keep Records
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Hosts must keep a log of all bookings (dates, duration, guest name, fee charged) for at least three years.
Operational Rules & Restrictions
Once you’re licensed, you need to follow the city’s operating rules. These are designed to balance rental opportunities with housing availability and neighbourhood safety.
🔹 Night Limits
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You can rent your entire home for a maximum of 180 nights per calendar year.
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Private rooms within your residence have no annual cap.
🔹 Occupancy Limits
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A maximum of two adults per bedroom is allowed.
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The total number of guests cannot exceed what the dwelling was designed for under building/fire codes.
🔹 Municipal Accommodation Tax (MAT)
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All STRs in Toronto are subject to a 6% MAT on rental revenues.
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Platforms like Airbnb usually collect this on your behalf, but hosts are responsible for ensuring correct reporting.
🔹 Record Keeping
Hosts must keep detailed booking records for at least three years, including:
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Dates of stay
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Number of guests
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Amount charged
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Platform used
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🔹 Advertising Rules
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Your city registration number must appear on all listings.
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Failure to display this can result in fines and listing removal.
Toronto Short Term Rental Penalties for Non-Compliance
Toronto takes short-term rental enforcement seriously. Hosts who fail to follow the rules face steep penalties that can quickly outweigh any rental income.
🔹 Common Violations
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Operating without a valid STR registration
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Renting a property that is not your principal residence
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Exceeding the 180-night limit for entire-home rentals
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Failing to collect or remit the Municipal Accommodation Tax (MAT)
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Not displaying your registration number on listings
🔹 Fines & Enforcement
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Fines can reach up to $100,000 for serious violations.
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Individual infractions typically range from $500 to $5,000 per day, depending on severity.
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City inspectors regularly check online platforms and property records to spot unregistered or non-compliant hosts.
🔹 Real-World Examples
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Hosts caught renting multiple condos as Airbnbs without registration have faced multi-thousand-dollar penalties.
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In some cases, condominium boards have also taken legal action against non-compliant unit owners.
💡 Tip: Staying compliant protects your income and avoids unnecessary legal battles.
Step-by-Step STR Compliance Checklist
Toronto’s STR rules can feel overwhelming, but breaking them down into a checklist makes compliance manageable.
✅ Confirm eligibility – Your property must be your principal residence.
✅ Register online – Apply through the City of Toronto’s portal and pay the $53.22 fee.
✅ Get your license number – Display it clearly on every Airbnb/VRBO listing.
✅ Track your nights – Remember the 180-night annual cap for entire-home rentals.
✅ Collect & remit MAT – Ensure the 6% Municipal Accommodation Tax is collected correctly.
✅ Follow occupancy rules – No more than two adults per bedroom.
✅ Keep records – Maintain booking logs for at least three years.
✅ Renew annually – Keep your registration active to avoid automatic suspension.
💡 Pro Tip: Many hosts use property management services like FullHome to handle compliance automatically, so they never miss a requirement.
How Full Home Helps Hosts Stay Compliant
Keeping up with Toronto’s strict short-term rental regulations can be stressful. Missing even one requirement — whether it’s forgetting to renew your license or misreporting MAT — can lead to fines and lost income. That’s where FullHome steps in.
🔹 End-to-End Compliance Management
We handle the entire registration process with the City of Toronto, ensuring your property is always licensed and legally ready to rent.
🔹 Tax & Reporting Support
Our team monitors Municipal Accommodation Tax (MAT) obligations, making sure all fees are properly collected and reported — giving you peace of mind at tax time.
🔹 Regulation Monitoring
Toronto’s bylaws can change, and enforcement is only getting stricter. We stay on top of every update so you never have to worry about being caught off guard.
🔹 Legal & Operational Safeguards
From occupancy limits to record-keeping, we ensure every box is checked. You focus on guest experience; we handle compliance.
💡 Bottom line: With FullHome, you don’t just avoid fines — you protect your income and reputation while running a smooth, stress-free rental business.
The City of Toronto has established a comprehensive and strictly enforced regulatory system for short-term rentals. For hosts, successful and legal operation hinges on understanding and adhering to the rules outlined in Toronto Municipal Code Chapter 547. By utilizing the official resources provided and staying informed about ongoing changes, hosts can navigate these requirements effectively, ensuring compliance and avoiding significant financial penalties.
FAQs About Toronto Airbnb & Short-Term Rental Rules
1. Do you need a license for Airbnb in Toronto?
Yes. All short-term rental hosts in Toronto must register with the City and display their registration number on listings. Operating without a license can result in fines.
2. Can I rent my condo as an Airbnb in Toronto?
Only if the condo is your principal residence and your condo board allows short-term rentals. Many condo corporations have their own bylaws restricting STRs.
3. How many nights can I rent my home on Airbnb in Toronto?
You can rent your entire home for up to 180 nights per year. If you’re renting private rooms in your residence, there is no annual cap.
4. How much does an Airbnb license cost in Toronto?
The annual registration fee is $53.22 (including HST) as of 2025. Renewal is required every year.
5. What happens if I don’t register my Airbnb in Toronto?
Unregistered hosts face fines that can range from $500 to $5,000 per day, with maximum penalties of up to $100,000 for serious violations.
6. Do I have to pay tax on Airbnb income in Toronto?
Yes. Hosts must collect and remit the 6% Municipal Accommodation Tax (MAT) on all short-term rental bookings, in addition to reporting rental income for federal and provincial taxes.
Short-Term Rentals – City of Toronto
https://www.toronto.ca/community-people/housing-shelter/short-term-rentals/
Short-Term Rental Operators/Hosts – City of Toronto
Short-Term Rental Municipal Accommodation Tax – City of Toronto
Toronto Municipal Code Chapter 547, Licensing and Registration of Short-Term Rentals
https://www.toronto.ca/legdocs/municode/toronto-code-547.pdf
Municipal Accommodation Tax (MAT) – City of Toronto
https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-accommodation-tax/
Short-term rental – Airbnb – City of Toronto
Toronto’s Airbnb Crackdown in 2025 – The Real Estate Insider
https://therealestateinsider.ca/torontos-airbnb-crackdown-in-2025/