Short-Term Rentals in Toronto: Airbnb Rules and Bylaws (2026)

The City of Toronto regime

Toronto's short-term rental rules came into force in 2021 (after legal challenges) and have been refined since. The framework:

• Operator registration required. Every short-term rental host must register with the City of Toronto and obtain an operator number. Annual fee.
• Principal residence only. You can only short-term rent your principal residence — the place you live for at least 50% of the year. You cannot operate a short-term rental of an investment property in the city.
• Entire-unit nights capped at 180 per year. If you rent the whole unit (rather than a room with you present), you're limited to 180 nights of "entire unit" stays per year.
• Municipal Accommodation Tax (MAT). 6% MAT applies to short-term rental stays, collected by the platform and remitted.
• Number listed in every ad. The operator registration number must appear on every Airbnb / Vrbo / similar listing.

The official source is toronto.ca/services-payments/permits-licences-bylaws/short-term-rentals.

The condo corporation layer

Even if the City permits short-term rental in your case, your condo corporation's rules may prohibit it. Almost every Toronto condo built or governed since 2015 has explicit rules banning rentals shorter than 28 or 30 days. The rules are enforceable by the corporation through its compliance process — including chargebacks for staff time, fines, and ultimately legal action.

If the corporation has a no-short-term-rental rule and you operate one in violation:

• The corporation can serve a compliance notice.
• Repeat or persistent violations can result in legal proceedings against the unit owner.
• Costs (including the corporation's legal fees) can be added to the unit's common expenses and ultimately become a lien on the unit.

Read the rules section of your status certificate (or your lease, if you're a tenant). The no-short-term-rental rule is one of the most consistent across Toronto buildings.

The tenant layer

If you're renting your unit and want to short-term sublet:

• The RTA permits a tenant to sublet without unreasonable refusal — but the landlord's consent and the corporation's rules still apply.
• If the corporation rules prohibit <30 day rentals, you can't sublet for less. Period.
• If the landlord prohibits subletting in the lease, the RTA still says they can't unreasonably refuse — but commercially-motivated Airbnb subletting is one of the things landlords are most likely to refuse, and the LTB would likely uphold.

Tenants who run unauthorized short-term sublets often face eviction (N5/N6 notices), as well as direct liability from the corporation. This is not a "loophole" play.

Insurance, tax, and legal risk

Beyond the licensing layer:

• Standard homeowner's and tenant's insurance policies typically exclude short-term rental activity — you need a specific endorsement or a short-term-rental policy.
• Short-term rental income is taxable. Operating costs are deductible against income but the principal-residence exemption can be affected if a portion of the home is consistently rented.
• Liability exposure from a guest injury, property damage, or party-gone-wrong is real and not theoretical.

What you can do legally

If short-term rental is your goal, the legal paths in Toronto:

• Operate from your principal residence, registered with the City, with corporation rules permitting and proper insurance.
• Operate medium-term rentals (30+ days) — technically a furnished long-term rental, not a short-term rental in the regulated sense.
• Operate a dedicated short-term rental property in a jurisdiction outside Toronto where the rules permit it (Niagara, Prince Edward County, cottage country — each with its own framework).

The "buy a downtown condo and Airbnb it" play that worked in 2015 doesn't work in 2026.