Airbnb Rules in Ontario | Airbnb Laws, Taxes, and Regulations

Ontario is the second-largest province in Canada covering an area of over 415,000 square miles, making it larger than France and Spain combined. In terms of industries and resources, it is Canada’s wealthiest province and is often referred to as the “pacemaker” of Canada’s economy.

A big part of Ontario’s landmass actually features lakes. The province boasts of a whopping quarter million lakes in total, making it a mecca for water sport enthusiasts.

Ontario is home to the iconic Niagara Falls. According to sources, festivals and special events around Niagara attract over 13 million tourists from around the world with average spending of about 2.4 billion which significantly impacts the local economy.

Apart from Niagara Falls, other attractions in Ontario include:

• Wineries
• Restaurants (more than 7500 varieties)
• Parks
• Water Parks
• Performance arts theatres
• Golf courses
• Hiking Trails
• Shopping Malls
• Performance arts theatres
• Golf courses
• Industrial Areas (for the business traveler)

Niagara Falls is obviously one of Ontario’s main attractions but there is much more to this province than meets the eye. With more than 2 billion in tourist spend up for grabs, Ontario is the ideal place to start or expand your short-term rental business if you have the means.

In this article, we discuss the laws, taxes, and regulations property managers and homeowners must abide by, to successfully run an Airbnb. This list is not exhaustive, but it should give you a good start in understanding the rules that might apply to your Airbnb in Ontario.

Airbnb Laws, Taxes and Regulations in Ontario

Municipal Rules:

Different local municipalities of Ontario have different rules with regards to licensing, zoning, noise, safety, and other matters, listed below are municipal rules to adhere to, in some major cities in the province.

Owner-occupied short term rental units:

In some cities like Ottawa, hosts will only be able to list their primary residences as vacation rentals. Additionally, more power is given to landlords and building owners in condominium-type buildings. Read our blog article to find out how to get around subletting restrictions.

However, short-term rentals are still technically permitted only if it is operated as a hotel or a bed and breakfast. Currently, there is no definition to permit the short-term rental of an entire unit in a residential zone as temporary accommodation for the public.

Licensing:

Some parts of Ontario including Toronto and Ottawa make it mandatory for hosts to acquire a host permit license, costing $110 to be able to list their property on holiday rental sites such as Airbnb.

Furthermore, short-term rental operators will have to display their registration numbers on all advertisements and listings.

Penalty for violations:

Any violations of local short-term rentals by laws may result in fines for both guests and hosts of up to $100,000 a day.

Health and Safety:

High importance is given to the Ontario Fire Code, a health and safety measure enforced by the local fire service regarding the installation and maintenance of smoke and carbon monoxide alarms. Refer to the fire safety rules through the Ontario Government’s website.

Advertising and Accessibility:

Hosts are encouraged to provide honest, accurate information about their properties including features and limitations with regards to accessibility, especially for the disabled. Furthermore, emphasis is given to provide precise pictures and descriptions that represent the home or space being offered. Access more information about Ontario’s accessibility standards at the government’s website.

Residential Tenancies Act

Rentals of residential units in Ontario may be subject to the Residential Tenancies Act, 2006. For assistance in understanding how the act applies to your locality refer to the Tribunals Ontario.

How does the occupancy tax collection and remittance by Airbnb work in Ontario?

Below is a short snap of how Occupancy Tax Collection and Remittance by Airbnb work in some of the major cities and counties of Ontario.

Barrie, Ontario

Guests who book Airbnb listings that are located in the City of Barrie will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City Of Barrie: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For detailed information, refer to the Barrie Hotel Accommodation Tax website.

Brockville, Ontario

Guests who book Airbnb listings that are located in the City of Brockville will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City of Brockville: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For more details refer, City of Brockville website.

Cornwall, Ontario

Guests who book Airbnb listings that are located in the City of Cornwall will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City of Cornwall: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For more information, visit the Cornwall City Finance website.

Greater Sudbury, Ontario

Guests who book Airbnb listings that are located in the City of Greater Sudbury will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City of Greater Sudbury: 4% of the listing price including any cleaning fees for reservations 30 nights and shorter. For detailed information, please visit the City of Greater Sudbury website.

Mississauga, Ontario

Guests who book Airbnb listings that are located in the City of Mississauga will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City of Mississauga: 4% of the listing price including any cleaning fees for reservations 30 nights and shorter. For detailed information, please visit the City of Mississauga website.

Ottawa, Ontario

Guests who book Airbnb listings that are located in the City of Ottawa will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City of Ottawa: 4% of the listing price including any cleaning fees for reservations 29 nights and shorter. For detailed information, please visit the City of Ottawa website.

Toronto, Ontario

Guests who book Airbnb listings that are located in the City of Toronto will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for the City of Toronto: 4% of the listing price for all reservations. For detailed information, please visit the Toronto Municipal Accommodation Tax website.

Waterloo Regional Tourism District, Ontario

Guests who book Airbnb listings that are located in the Waterloo Regional Tourism District (cities of Kitchener, Waterloo, Cambridge, Woolwich, Wellesley, and Wilmot only) of Ontario will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax of the Waterloo Regional Tourism District: 4% of the listing price including any cleaning fees for all reservations 29 nights and shorter. For detailed information, please visit the Waterloo Regional Tourism District website.

Windsor, Ontario

Starting April 1, 2019, guests who book Airbnb listings that are located in Windsor will pay the following taxes as part of their reservation:

• Municipal Accommodation Tax for Windsor: 4% of the listing price including any cleaning fees for reservations 30 nights and shorter. For detailed information, please visit the City of Windsor website.

In conclusion:

It may look like a lot to take in but the rules are in place for public safety and to make sure the locals in Ontario also benefit from the tourism industry but it doesn’t keep you out of the industry either. If you are looking to expand your property rental portfolio, request a free demo to find out how we help property managers around the world grow their businesses.