Airbnb Rules in Canada by City — Licensing, Taxes & Insurance (2026)

Why short-term rental rules matter for homeowners

Canada’s short-term rental (STR) landscape changed rapidly between 2023 and 2026. British Columbia passed province-wide legislation. Ontario tightened enforcement. Quebec updated its tourism accommodation rules. Whether you plan to host occasionally while travelling or turn a spare room into income, understanding local rules protects you from fines, insurance gaps, and even mortgage default triggers.

Federal rules that apply everywhere

Before looking at city-specific bylaws, every Canadian Airbnb host must comply with federal obligations.

Income tax

All short-term rental income is reported on your federal tax return as either rental income (Line 8299 / T776) or business income depending on the level of services you provide.

GST/HST

• Registration is mandatory once your gross STR revenue exceeds $30,000 over four consecutive quarters.
• Below that threshold, registration is optional but lets you claim input tax credits.
• Airbnb began collecting GST/HST on behalf of hosts in July 2022 in provinces where it applies, but you remain responsible for accurate reporting.

Mortgage implications

Most residential mortgages prohibit commercial use of the property. Running a full-time STR could technically breach your mortgage covenant. In practice, occasional hosting rarely triggers lender action, but:

• CMHC-insured mortgages require owner-occupancy. Operating an STR on a non-owner-occupied insured property could void the insurance.
• Investment-property mortgages allow rental use but may require you to disclose STR income separately.
• Home insurance almost always requires disclosure of STR activity (see the insurance section below).

City-by-city regulation summary

Major cities in detail

Toronto

Key rules:

• Must register with the City and obtain a Short-Term Rental Registration Number.
• Only your principal residence qualifies — the address on your driver’s licence, tax return, and voter registration.
• Entire-home rentals capped at 180 nights per year. Private-room rentals have no cap.
• Registration number must appear on every listing.
• 4% Municipal Accommodation Tax (MAT) collected by Airbnb.
• Annual reporting required to the City.

Enforcement: Toronto actively enforces through complaints, audits, and platform data sharing. Fines range from $1,000 to $100,000 per offence under the updated bylaw.

Condo considerations: Even if the City permits your listing, your condo corporation may prohibit STRs entirely. Check your declaration and rules before listing.

Vancouver

Key rules:

• Must hold a City of Vancouver business licence ($49/year for non-operator, $99 for operator).
• Principal residence only — the home you live in at least 9 months of the year.
• No night cap, but you must be living in the home or renting individual rooms.
• Licence number must appear on every listing.
• Strata bylaws can further restrict or ban STRs.

Provincial layer — BC Short-Term Rental Accommodations Act (2024):

British Columbia introduced province-wide rules effective May 2024:

• Principal-residence requirement applies across the province (municipalities can opt out for communities under 10,000 population).
• Platforms must remove non-compliant listings within a set timeframe.
• Provincial 8% PST applies to all STRs.
• Hosts must display a valid business licence number on listings.
• Fines up to $3,000/day for non-compliance under provincial legislation.

Montreal

Key rules:

• Must register with the Corporation de l’industrie touristique du Québec (CITQ) and obtain a classification number.
• CITQ number must appear on all listings and advertising.
• Principal residence in most boroughs. Some tourist-zone exceptions exist.
• Quebec 3.5% lodging tax collected by Airbnb.
• Provincial GST (QST at 9.975%) applies in addition to GST.

Enforcement: Revenu Québec conducts inspections. Fines range $1,000 to $25,000 for operating without a CITQ number.

Ottawa

Key rules:

• Must register for an STR permit through the City of Ottawa.
• Principal residence only — maximum one STR per host.
• No night cap for rooms; entire-home rentals must be occasional (host away temporarily).
• 4% Municipal Accommodation Tax collected by platform.
• Permit number on every listing.

Enforcement: Fines up to $100,000 and potential permit revocation.

Calgary

Key rules:

• Requires a City of Calgary business licence (residential rental category).
• No principal-residence restriction — investment properties can be listed.
• No night cap.
• Must comply with land-use bylaw; some zones restrict commercial accommodation.
• No platform-facing registration number requirement, but licence must be held.

Tax layer: Alberta charges 4% Tourism Levy on accommodation under 28 days, collected by Airbnb.

Halifax

Status (2025): Halifax Regional Municipality is developing STR regulations. The proposed framework includes:

• Principal residence restriction.
• Licensing or registration.
• Platform accountability provisions.

Until regulations are finalized, hosts must still comply with provincial 2% Marketing Levy and federal tax obligations.

Insurance for short-term rentals

Standard homeowners’ insurance does not cover short-term rental activity. If a guest is injured or damages your property and you haven’t disclosed STR use, your insurer can deny the claim.

What Airbnb’s coverage does NOT include

• Your personal belongings beyond basic coverage limits.
• Loss of rental income if the property becomes uninhabitable.
• Wear and tear or gradual damage.
• Intentional acts by the guest (most policies exclude this).
• Liability arising from non-compliance with local regulations.

Recommendation: At minimum, add an STR endorsement to your existing home insurance. If you host more than 90 nights per year, consider a dedicated STR policy from providers like Duuo, Proper Insurance, or APOLLO.

Tax obligations by province

Rates shown for accommodation under 28 consecutive days. Stays of 28+ days are often exempt from accommodation levies.

Deductible expenses for Airbnb hosts

If you host in part of your principal residence, you can deduct a proportional share of household expenses.

How to calculate the proportion:

1. Measure the area of the hosted space (e.g., spare bedroom + shared bathroom = 200 sq ft).
2. Divide by total home area (e.g., 1,600 sq ft).
3. Proportion = 200 / 1,600 = 12.5%.
4. Multiply by time proportion — if you host 120 nights / 365 days = 32.9%.
5. Combined proportion = 12.5% × 32.9% = 4.1% of annual household expenses.

Eligible expenses at that proportion:

On top of proportional expenses, you can deduct 100% of direct STR costs: platform fees, cleaning costs, supplies, photography, and STR-specific insurance.

Compliance checklist

Before your first guest arrives, work through this list:

1. Check municipal bylaws — confirm STRs are permitted in your zone and dwelling type.
2. Obtain required licences — register with the city and/or province.
3. Review mortgage terms — ensure STR use does not breach your mortgage covenant.
4. Check condo/strata rules — if applicable, confirm your corporation permits STRs.
5. Update home insurance — add an STR endorsement or purchase dedicated coverage.
6. Register for GST/HST — if revenue will exceed $30,000, register proactively.
7. Set up expense tracking — separate bank account or dedicated spreadsheet.
8. Display registration number — on every listing, in every ad, on your booking confirmation.
9. Collect and remit taxes — verify which taxes the platform collects vs. which you must remit directly.
10. File annual reports — where required by the municipality (Toronto, Ottawa, etc.).

Related pages

• Rental Property Mortgage Guide
• How Rental Income Is Taxed in Canada
• Investment Property vs Principal Residence
• Landlord Insurance Canada
• Home Insurance and Your Mortgage
• Buying a Condo in Canada