Toronto Short-Term Rentals (Airbnb): 2026 Rules and Pricing Tips
Principal residence, 180-night cap, registration fee, and tax — compliance first
What are the hard rules for running a short-term rental in Toronto?
Three hard rules: you can only rent your principal residence, an entire-home listing is capped at 180 nights per year, and you must register before listing. According to the City of Toronto (2025), a short-term rental is renting all or part of your home for fewer than 28 consecutive days for payment; registration costs $390 (effective Jan 1, 2025, non-refundable).
Source: City of Toronto Short-Term Rentals (2025).
Whether a short-term rental makes money starts not with the décor but with compliance. Toronto regulates STRs tightly — getting it wrong isn’t just a fine, your listing can be removed. Here are the hard 2026 rules, plus a few tips that genuinely lift peak-season revenue.
→
→
→
→
Hard rule 1: it must be your principal residence
Hard rule 2: entire-home is capped at 180 nights
Hard rule 3: register before you list ($390)
⚠️The 8.5% accommodation tax is temporary and is set to revert to 6% after July 31, 2026. When pricing and filing, separate the two periods so you remit the correct rate.
Municipal Accommodation Tax: currently 8.5%, until July 2026
Who can operate: tenants and condo owners, check first
💡 Tips to lift peak-season revenue: use dynamic pricing for high-demand windows (summer, holidays, TIFF, major conventions, playoffs); concentrate your 180 nights into those peaks; invest in fast Wi-Fi, in-suite laundry, parking, and quality photos; and protect strong reviews with instant-book and fast responses.
Frequently Asked Questions
Can I run an Airbnb on my investment property?
No. According to the City of Toronto (2025), an STR must be your principal residence, and a person has only one, so you cannot legally operate multiple STRs. An investment property suits long-term tenancy (28+ days).
What’s the entire-home night limit per year?
According to the City of Toronto (2025), an entire-home short-term rental is capped at 180 nights per calendar year, resetting Jan 1. Renting only a room while you live there is not subject to the cap.
How much is registration?
According to the City of Toronto (2025), STR registration is $390, effective Jan 1, 2025, non-refundable and subject to annual increases. You must register before listing.
How much accommodation tax applies?
According to the City of Toronto (2025), it is currently 8.5% (a temporary increase under Bylaw 1259-2024), in effect June 1, 2025 to July 31, 2026, reverting to 6% afterward unless extended; filed quarterly.
Discover more from GTA Real Estate Broker | Arthur Zhao
Subscribe to get the latest posts sent to your email.
