Ontario's short-term rental rules in 2026, by municipality
Last reviewed June 2026 against each municipality's official publications.
There's no single Ontario short-term rental law. Each city and township writes its own — its own licence, its own tax rate, its own renewal clock, its own limits. That's the thing that trips up hosts who assume Toronto's rules apply at the cottage, or that a cottage-country licence covers them downtown. This guide lays out the five busiest Ontario markets side by side, then drills into each one. Every figure here comes from the municipality's own publications.
On this page
The five municipalities, side by side
| Municipality | Second homes? | Accommodation tax | Renewal |
|---|---|---|---|
| Toronto | No — principal residence only | 8.5%* | Annual |
| Ottawa | No (rural cottage permit exists) | 6% | 2-year |
| Muskoka Lakes | Yes | District MAT \u2014 verify | Annual |
| Prince Edward County | Grandfathered only | 4% | Annual |
| The Blue Mountains | Yes (permitted zones) | 4% | 2-year |
*Toronto's 8.5% is a temporary rate in effect to July 31, 2026 (normally 6%).
Toronto
Principal residence only, 180-night cap, 8.5% MAT
Toronto allows short-term rental of your principal residence only — owner or tenant, house or condo, but only where you actually live. Registration is $390 for 2026 (credit card, non-refundable), renewed every year on your approval date. Miss it and late fees climb from $11.27 to $160.69, with automatic cancellation after 90 days.
The Municipal Accommodation Tax is temporarily 8.5% (to July 31, 2026; normally 6%). Even though Airbnb collects it, you must file a MAT report online every quarter. If you rent your entire home, you're capped at 180 nights a year; renting private rooms while you live there has no cap. In a condo, your corporation's own bylaws can ban STRs regardless of City approval.
Source: City of Toronto
Ottawa
Principal residence host permit, 6% MAT, separate rural cottage permit
Ottawa requires a host permit for your principal residence, on a two-year term. Unusually, Ottawa also has a separate rural cottage permit ($116 for two years) for renting a cottage or home in the rural area — so a non-principal property isn't automatically excluded the way it is in Toronto.
The Municipal Accommodation Tax is 6%, recently raised from 5% by by-law 2026-8. You'll need $1,000,000+ liability insurance that specifically covers short-term rental, and there's an overnight guest cap (8, or 10 in an oversize dwelling). The permit number goes on every listing.
Source: City of Ottawa
Muskoka Lakes
Cottages allowed, zone-based licence fee, summer waterfront limits
Muskoka Lakes licenses cottages and second homes — this is cottage country, and the rules reflect it. The annual STRA licence is $1,000 for waterfront or R4 zones and $500 for all other zones, run through Cloud Permit, with the current cycle running November 1 to November 1.
The distinctive part is the summer restrictions on waterfront and R4 properties: you must take seven consecutive nights off renting each month in June, July, and August, and you can host only one rental group every six nights from Victoria Day to Labour Day. Occupancy is two guests per bedroom unless your septic system is documented for more. A District of Muskoka accommodation tax may apply — confirm the rate with the District before accepting bookings.
Source: Township of Muskoka Lakes
Prince Edward County
Per-room licence fees, 4% MAT, whole-home freeze
Prince Edward County charges its STA licence per guest room, not as a flat fee: a primary-residence licence is $200/room to start and $100/room to renew, while a whole-home licence is $325/room and $162.50/room. HST isn't applied. Licences are annual, with whole-home properties inspected every two years and primary residences every four.
The Municipal Accommodation Tax is 4%. The big catch: the County stopped issuing new whole-home (non-principal) licences in September 2022. Existing ones are grandfathered and can be renewed or transferred with a sale, but you can't get a fresh one — so buying an already-licensed property is often the only route into a non-principal rental here.
Source: County of Prince Edward
The Blue Mountains
Zone-gated, 4% MAT, two-year licence
The Blue Mountains licenses short-term accommodations on a two-year term: $2,500 initial, $1,000 renewal for a house, or $1,500 / $500 for a condo unit, plus an $80 pre-screen, $60 application, and $75 fire inspection. Licensing runs through Cloud Permit. Crucially, STRs are only permitted in specific zones — there's a moratorium outside the permitted area, so confirm your property qualifies before applying.
The Municipal Accommodation Tax is 4%, registered separately online. Occupancy is two guests per bedroom, max eight. Operating without a licence carries a $2,500 administrative penalty; advertising without one is $500.
Source: Town of The Blue Mountains
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