Complete Guide to Airbnb Rules in Toronto 2025

Toronto’s short-term rental regulations represent some of North America’s strictest hosting rules, with major compliance updates taking effect throughout 2025. Current Airbnb rules in Toronto require all short-term rental operators to obtain a city-issued registration number, prove principal residence and comply with enhanced enforcement measures that carry penalties reaching tens of thousands of dollars for violations.

The city of Toronto has fundamentally restructured how Airbnb hosts can operate, implementing a comprehensive framework that prioritizes housing market preservation over tourism growth.

What this guide covers

This comprehensive guide covers Toronto Airbnb regulations, the complete registration process, principal or primary residence requirements, municipal accommodation tax obligations, night limits for different rental types and the latest enforcement penalties introduced in 2025. We exclude hotel regulations and long-term rentals exceeding 28 consecutive days, focusing exclusively on short-term rentals that fall under Toronto’s short-term rental laws.

Who this Is for

This guide is designed for current Airbnb hosts, property owners considering short-term rentals in Toronto and tenants exploring hosting opportunities with landlord permission. Whether you’re operating an entire unit or private rooms, you’ll find specific compliance requirements for your situation.

Why this matters

Non-compliance with Toronto’s short-term rental rules now carries fines up to $50,000 for individuals and $100,000 for corporations, plus immediate listing removal from platforms like Airbnb. The city has significantly increased enforcement capabilities in 2025, including mandatory annual inspections and automated platform monitoring through new API requirements.

What you’ll learn:

• Mandatory registration requirements and the $375 annual registration fee

• Principal residence verification and documentation requirements

• Night limits and rental type restrictions for entire home vs partial unit operations

• Municipal accommodation tax obligations at 8.5% for 2025-2026

• Penalty avoidance strategies and compliance best practices

Understanding Toronto’s Short-Term Rental Framework

Toronto defines short-term rentals as any accommodation offered for rental periods of less than 28 consecutive nights through platforms like Airbnb or other booking services.

The regulatory framework centers on preserving long-term housing stock while allowing legitimate hosting by permanent residents. This approach distinguishes Toronto Act requirements from other jurisdictions that permit investment properties for vacation rentals.

Principal residence requirement

The principal residence requirement serves as the cornerstone of short-term rental regulations in Toronto. Toronto defines principal or primary residence as the address where you live most of the year and use for tax returns, utility bills, government-issued identification like your Ontario photo card and insurance documentation.

This connects to housing market preservation goals because it prevents the conversion of investment properties into dedicated short-term rental businesses that would remove housing from the rental market permanently.

Regulatory timeline and 2025 updates

The evolution from initial 2020 regulations to current enforcement represents a progressive tightening of short-term rental laws. Building on the principal residence concept, 2025 introduced enhanced compliance measures including increased registration fees from previous amounts to $375 annually, stricter verification requiring potential in-person interview requirements and automated platform monitoring.

Understanding this framework establishes the foundation for navigating the specific registration and licensing requirements that all hosts must complete.

Registration and Licensing Requirements

Registration with the city of Toronto represents the mandatory first step for legal short-term rental operations under Toronto’s framework, with enhanced verification procedures taking effect in 2025.

Mandatory registration process

All Toronto Airbnb hosts must complete this process before listing any property.

1. Gather principal residence documentation: Collect at least two documents proving your permanent residence, including utility bills, lease agreement, tax returns or government-issued identification

2. Complete registration online: Submit your application through the City of Toronto’s official portal with property details, emergency contact information and address details

3. Pay annual registration fee: Submit the $375 registration fee using a valid credit card (increased from previous years)

4. Display registration number: Add your valid registration number to all Airbnb listing descriptions and promotional materials

5. Maintain current information: Update any changes to address details, telephone number or emergency contact within six business days

Eligible property categories

Primary residences qualify for short-term rental registration, including your main dwelling unit, secondary suites within your principal residence, garden suite and laneway housing on your property. Rental properties require written landlord permission in your lease agreement before registration approval.

Investment properties and non-principal residence locations cannot register for short-term rental licenses under current regulations in Toronto.

Registration exemptions

Hotels and motels operate under separate licensing through other government agencies and remain exempt from short-term rental rules. Properties offering stays exclusively for 28 or more consecutive nights fall outside short-term rental definitions and avoid registration requirements.

This connects directly to previous registration requirements because it clarifies the specific scope of Toronto’s short-term rental framework.

With registration completed, hosts must navigate detailed operational requirements that vary significantly based on rental type and property configuration.

Detailed Hosting Requirements and Compliance

Building on the registration foundation, operational compliance involves ongoing obligations that differ substantially between entire unit and partial unit hosting models.

Step-by-step: Complete host setup process

New hosts beginning registration and compliance after the 2025 regulatory updates.

1. Verify principal residence status: Confirm your documentation meets the principal or primary residence criteria with two forms of proof

2. Complete registration and pay fees: Submit your new registration application with the $375 annual registration fee

3. Configure registration display: Add your city-issued registration number to your Airbnb listing and any promotional materials

4. Set up municipal accommodation tax collection: Implement 8.5% Municipal Accommodation Tax (MAT) collection for all short-term bookings (Airbnb handles this automatically for platform bookings)

5. Establish night limit tracking: Configure monitoring systems for the 180-night annual limit if operating entire home rentals

Toronto Airbnb Rules at a Glance (2025)

Entire unit operations suit hosts seeking occasional rental income while maintaining primary residence use, while partial unit hosting works for hosts comfortable sharing their dwelling unit throughout the year without night restrictions.

Even with proper setup, hosts frequently encounter specific compliance challenges that require targeted solutions.

Common Challenges and Solutions

Understanding common compliance obstacles helps Toronto Airbnb hosts maintain valid registration numbers and avoid enforcement penalties.

Challenge 1: Registration denial or delays

Solution: Prepare comprehensive principal residence documentation and consider scheduling an in-person interview if requested by city staff.

The city may require additional verification for properties with complex ownership structures or recent address changes.

Challenge 2: Exceeding 180-night annual limit

Solution: Monitor booking calendars carefully and transition to private room hosting or 28+ day minimum stays before reaching the limit.

Hosts cannot switch between entire unit and partial unit rental types during the registration period - changes only occur during annual renewal.

Challenge 3: Municipal accommodation tax compliance

Solution: Utilize Airbnb’s automatic MAT collection service for platform bookings and establish quarterly reporting systems for direct bookings.

The 8.5% rate applies through July 2026, with hosts responsible for collection on all short-term bookings under 28 days.

These solutions provide immediate compliance support, leading to essential next steps for successful hosting operations.

Conclusion and Next Steps

Toronto’s short-term rental regulations prioritize principal residence verification, mandatory registration with substantial annual fees and strict operational limits that distinguish legitimate hosting from commercial investment operations. Compliance protects hosts from severe penalties while supporting the city’s housing preservation objectives.

To get started:

1. Verify your principal or primary residence status with appropriate documentation

2. Complete registration online with the $375 annual registration fee

3. Update all Airbnb listings with your valid registration number and current rental type designation

Related Topics: Understanding Ontario photo card requirements for verification, navigating condo bylaws that may restrict short-term rentals and securing appropriate insurance coverage for hosting activities.

Additional Resources

City of Toronto Short-Term Rental Office: Contact the licensing department for registration support and compliance questions through their dedicated telephone number. For general short-term rental matters — call 311 (within Toronto) or dial 416-392-2489 from outside city limits

Official Registration Portal: Complete new registration and renewal processes through the city’s online system with valid credit card payment processing. For document submission or questions about STR registration, renewals, or regulatory compliance: mail or visit their office at 1530 Markham Road, 3rd Floor, Toronto, Ontario, M1B 3G4 or call 416-338-5008.

Toronto Host Community Groups: Connect with other short-term rental hosts for peer support and local law updates affecting the Airbnb hosting community. The portal provides a “Contact Us” email form: contact@torontoinsights.com — use this for technical issues, questions about listing status or data inaccuracies.

FAQ: Airbnb Rules in Toronto 2025

Can I host on Airbnb in Toronto if I split my time between two homes during the year?

Yes, but only one address can legally be your principal residence for short-term rental purposes. Toronto expects you to choose the home where you actually live the majority of the year. Seasonal living patterns don’t create exceptions, so your secondary home cannot be used for Airbnb unless stays are 28 nights or longer.

If my condo board allows short-term rentals, does that override the city’s principal residence rule?

No. Condo permissions and city regulations operate separately. Even if your condo corporation permits short-term rentals, the unit still must be your principal residence to qualify for a legal Airbnb registration with the city.

Can I hire a property manager to run my Airbnb if I travel frequently?

Yes, as long as the property remains your principal residence and you maintain the ability to return and occupy it. Toronto allows co-hosts and managers, but enforcement officers look for signs of commercial operation, so you should keep documentation proving you actively live at the address.

Are basement apartments treated differently under Toronto’s Airbnb rules?

They’re eligible only if the basement unit is part of your principal residence. If the basement suite operates as a separate dwelling and isn’t your primary home, it cannot be used as a short-term rental. A basement suite inside your principal residence is allowed as long as it meets zoning and safety requirements.

What happens if Airbnb’s automated system removes my listing by mistake?

Hosts can contact the City of Toronto’s Short-Term Rental Office with proof of registration. The city will confirm your active status with Airbnb through the new API verification system. Once verified, platforms typically restore listings within a few business days.