What Is An STR Permit In Toronto? (Rules, Requirements & Compliance)

Thinking about joining the thousands of Toronto residents who rent out their space on Airbnb or Vrbo? Before you snap those listing photos, there is one non-negotiable step – obtaining your Short-Term Rental (STR) Permit.

What Is An STR Permit?

An STR Permit (officially called a Short-Term Rental Operator Registration) is a mandatory license issued by the City of Toronto. It grants you the legal right to rent out your principal residence to travellers and guests.

The permit system was created to prevent ghost hotels, entire buildings or secondary suites from being used as permanent tourist rentals, which depletes the city’s housing stock for long-term tenants. By requiring a permit, the City can track who is hosting, how often they host, and ensure they are paying their fair share of taxes.

The 28-Day Rule

Short-Term Rental – Any stay of 27 nights or fewer. You MUST have an STR permit
Mid-to-Long-Term Rental – Any stay of 28 nights or more. You do NOT need an STR permit.

Core Rules and Requirements for 2026

Toronto’s rules are among the strictest in Canada. To qualify for a permit this year, you must meet the following criteria:

The Principal Residence Requirement

This is the Golden Rule of Toronto STRs. You can only rent out a home where you actually live.

Definition – Your principal residence is where you spend the majority of the year and the address listed on your government ID, tax returns, and utility bills.
Investment Properties – You cannot get an STR permit for a second home, a dedicated investment condo, or a cottage within city limits.
Secondary Suites (Basements/Laneway Houses) – You can only rent these out if you are the one living in them as your primary home. An owner cannot live on the main floor and rent the basement as an STR.

The Principal Residence Requirement

The City distinguishes between renting a spare room and renting your entire home.

Entire Home Rentals – You can rent your entire unit while you are away (vacation, work travel) for a maximum of 180 nights per calendar year.
Partial Unit (Room) Rentals – You can rent up to three bedrooms within your home for an unlimited number of nights, provided you are living there during the stay.

The Principal Residence Requirement

The cost of doing business has changed. As of 2026, the annual registration fee is $375.00. This fee is non-refundable and must be paid via credit card during your online application. Your permit is valid for exactly 365 days and must be renewed annually.

Municipal Accommodation Tax (MAT) 2026

One of the most significant changes for hosts in 2026 is the temporary tax hike.

From June 1, 2025, to July 31, 2026, the Municipal Accommodation Tax (MAT) has increased from 6% to 8.5%.

This 2.5% bump was implemented by the City to help fund infrastructure and tourism services related to major international events, including the 2026 FIFA World Cup.

Collection – If you use Airbnb or Vrbo, the platform usually collects and remits this 8.5% automatically.
Direct Bookings – If you take bookings through your own website or Instagram, you are responsible for collecting the 8.5% and remitting it to the City quarterly.

Step-By-Step - The STR Permit Application Process

Ready to apply? The STR Permit Application is completed entirely online through the City’s portal.

Verify Your ID – You must have a valid Ontario Driver’s License or Ontario Photo Card. The address must match the property you are registering.
Assign an Emergency Contact – You must provide a 24/7 contact name and number for someone who can respond to the property within hours in case of an emergency.
Submit Documentation – In 2026, the City often asks for secondary proof, such as a utility bill or bank statement, to verify principal residency.
Pay and Display – Once approved, you will receive a registration number (e.g., STR-202X-XXXXXX). This number must be displayed on every listing you post online.

Compliance and Enforcement - Why You Can't Fly Under the Radar

In 2026, Toronto’s enforcement team is more active than ever. They use data-sharing agreements with platforms like Airbnb to track nightly stays and verify permit numbers.

Compliance and Enforcement - Why You Can't Fly Under the Radar

In 2026, Toronto’s enforcement team is more active than ever. They use data-sharing agreements with platforms like Airbnb to track nightly stays and verify permit numbers.

The Lookup Tool – Neighbours and city officials use the Toronto STR Open Data Portal to see if a specific address is legally registered.
Random Audits – The City conducts random audits, asking for three years of records, including guest logs, nightly rates, and tax remittance.
Fines – Operating without a permit can result in an immediate $1,000 fine. Consistently exceeding the 180-night cap can lead to fines of up to $700 per night and the permanent revocation of your license.

For more information on the legal nuances of hosting in Ontario, you can consult the Ontario Landlord and Tenant Board for guidance on how short-term stays differ from residential tenancies.

Maximise Your Revenue with Toronto Boutique Apartments

Staying compliant with STR permit compliance in Canada is the only way to build a sustainable rental business. However, navigating the 180-night cap and the 8.5% MAT tax can be overwhelming.

At Toronto Boutique Apartments, we specialize in managing high-end, compliant stays. If you’re an owner looking to maximize your income while staying 100% legal, our team can help you transition to a professional property management model that handles everything from licensing to guest vetting.

Need Assistance for STR Permit?

Toronto Boutique Apartments is here to help. As professionals, we know exactly how the STR permit and licensing rules work. We can help you navigate the application and compliance process for free.

Need Help Filing Your MAT Report Correctly?

Don’t let tax season stress you out. Get professional help filing your 8.5% MAT reports correctly and on time. Toronto Boutique Apartments offers this service free of cost to local hosts.

What Is An STR Permit In Toronto? (Rules, Requirements & Compliance)