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

Airbnb has taken the travel world by storm. Especially in Ontario, one of Canada's hottest spots, where unique and affordable listings are popping up everywhere. But with all this excitement comes the need for some ground rules just to keep things smooth.

Let's dive into the world of laws, taxes, and regulations that all Ontario Airbnb hosts need to know.

Airbnb Laws, Taxes and Regulations in Ontario

Municipal rules:

Different local municipalities of Ontario have different rules with regards to licensing, 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 Toronto and Ottawa, hosts will only be able to list their primary residences as vacation rentals. 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 permitted 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.

Some other key cities that limit short-term rentals to primary residencies only include, Ottawa, Mississauga, Hamilton and Huntsville.

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 laws may result in fines for both guests and hosts of up to $100,000 a day.

Health and Safety:

Airbnb hosts in Ontario must ensure their property complies with fire and safety standards. This includes installing smoke and carbon monoxide detectors, following building and fire codes, setting up emergency evacuation paths and providing guests with emergency contact numbers.

Hosts are also responsible for ensuring the property has adequate insurance coverage. 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.

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

The Residential Tenancies Act (RTA) of 2006 in Ontario, effective from January 31, 2007, outlines the rights and responsibilities of landlords and tenants renting residential properties. It applies to most rental units, including apartments, houses, and rooms in rooming or hostels as well.

The RTA covers aspects like maintenance, rent, tenancy agreements, and the process for resolving disputes. However, it does not apply to units where tenants share a kitchen or bathroom with the landlord. The Landlord and Tenant Board (LTB) is responsible for resolving disputes under this Act.

For more detailed information, you can visit the Landlord and Tenant Board's Guide to the Residential Tenancies Act.

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 works 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to 29 nights in duration. For more 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to 29 nights in duration. 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to 29 nights in duration. 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to 30 nights in duration. For more 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to 30 nights in duration. 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of 29 nights or shorter. For more 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: A tax rate of 4%, applied to the total listing price, including any cleaning fees. For 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 taxes below as part of their reservation:

• Municipal Accommodation Tax of the Waterloo Regional Tourism District: A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to 29 nights in duration. For more 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:A tax rate of 4%, applied to the total listing price, including any cleaning fees, for bookings of up to and including 30 nights in duration. For detailed information, please visit the City of Windsor website.

Final Thoughts:

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.

Updated Dec 21, 2023