Short Term Rentals in Canada: 2026 Rules in BC, Ontario and Quebec
Short term rentals in Canada are mostly regulated by provinces and cities, not by one national law. A host in Vancouver, Toronto and Montreal faces three different sets of rules. What they share is a registration number, local limits and real fines for skipping a step.
This guide sets out the main rules in British Columbia, Ontario and Quebec for 2026. It covers who must register, what it costs, where the number must appear and which local taxes apply. It also explains a federal tax rule that links every province together. Rules change often, so always confirm the current position with your province and city.
Key Takeaways
Short-term rental hosts in BC, Toronto and Quebec all need a registration number that must appear on their online listings.
BC charges $100 a year for a unit the host lives in and $450 for a unit the host does not live in.
Toronto lets residents rent only their principal residence, with entire-home stays capped at 180 nights a calendar year and a 6% accommodation tax.
Quebec requires registration for stays of 31 days or less, with 2026 fees of $54 for a principal residence and $156 for a tourist home.
Since 2024, the CRA can deny tax deductions on rentals that break provincial or city rules, so hosts should register first and keep clean records.
BC Short Term Rentals: Registry and Principal Residence Rules
British Columbia has the strictest provincial framework of the three. The Short-Term Rental Accommodations Act was introduced in fall 2023 and has been fully in place since June 2025. Anyone who runs a short-term rental in BC and lists it on platforms such as Airbnb or Vrbo must register with the province. The provincial number must appear on all online listings, effective 1 May 2025.
The principal residence rule took effect on 1 May 2024. In communities over 10,000 people, a short-term rental can only be offered in the host's principal residence plus one extra unit. That extra unit can be a secondary suite or a laneway home. Cities can keep or add their own, stricter bylaws on short term house rentals.
Some places can now opt out of these limits on short-term rentals. Communities with a 3% vacancy rate for two years in a row can ask to leave the rule. Kelowna's opt-out took effect on 1 June 2026. From 2027, opt-out requests are due by 28 February.
Hosts who rent short term in BC should plan around these figures:
$100 a year to register a unit the host lives in
$450 a year for a unit the host does not live in
$600 a year for an entire strata hotel
Registration number shown on every online listing
Local business licence number on listings where the city requires one
Penalties of $500 to $5,000 a day per infraction for hosts
Up to $10,000 a day for corporations
Short Term Rentals in Ontario and Quebec: Who Sets the Rules?
In Ontario, the main rules come from cities such as Toronto. Toronto lets residents rent only their principal residence for short term stays of less than 28 days in a row. Hosts must register with the City, renew each year and post the City number on every listing. The 2026 renewal fee is $390.
Toronto also caps entire-home stays at 180 nights a calendar year. Hosts can rent up to three bedrooms in their home with no night limit. Ontario cities have been able to add a transient accommodation tax since 1 December 2017, and Toronto charges 6%. If a platform has a collection agreement with the City, it may collect the tax for the host.
Quebec runs one provincial system. Anyone renting to tourists for 31 days or less needs a registration number, shown in every ad. From 1 January 2026, the fee is $54 for a principal residence and $156 for a tourist home. Revenu Québec can fine an individual $2,500 to $25,000 for renting without registration.
These Ontario and Quebec rules shape short term home rentals in both provinces:
Toronto ticket of $1,000 for failing to register
Toronto ticket of $1,000 for advertising without a registration number
Toronto ticket of $700 for renting an entire unit over 180 days
Annual compliance inspections of approved Toronto registrations since January 2025
Ontario guest register rules for hotels and online platforms from 1 January 2026
Quebec certificate posted at the main entrance
Quebec tax on lodging, usually 3.5% of each night
How ChargeAutomation Supports Canadian Short-Term Rental Operators
Registering a unit is handled directly with each province or city, and ChargeAutomation is not part of that process. ChargeAutomation does not apply for numbers, file taxes or deal with inspectors. Once a unit is registered and renting short term, though, hosts face a different set of risks around payments, guest identity and records.
ChargeAutomation can add local taxes as their own line on direct bookings. That helps where a host must collect Toronto's accommodation tax or Quebec's lodging tax themselves. Itemised receipts and invoices show each charge clearly. Reports with XLSX and CSV export give hosts a record of stays and payments for their accountant.
Each guest can sign a digital short term rental agreement with house rules and e-signatures. On direct bookings, hosts can verify guest ID with a live selfie through Stripe Identity. Chargeback and fraud protection includes 3D Secure payments. Airbnb verifies its own guests, so hosts should follow Airbnb's rules before asking for extra ID.
ChargeAutomation connects with 50+ PMS platforms, including Guesty, Hostaway, Lodgify and Hostfully. Start for free at chargeautomation.com.
Canadian hosts use these ChargeAutomation features once a unit is registered:
Local accommodation or lodging tax shown as a separate line on direct bookings
Itemised receipts and invoices with custom line items
Booking and transaction reports with XLSX and CSV export
Digital rental agreements with e-signatures and house rules
Guest ID checks with a live selfie through Stripe Identity on direct bookings
Chargeback and fraud protection with 3D Secure
Security deposit holds where the booking channel allows them
Frequently Asked Questions
Do I need a licence for a short-term rental in Canada?
It depends on the province and city. BC requires provincial registration, Toronto requires City registration, and Quebec requires a provincial registration number for stays of 31 days or less. Other cities may run their own licence schemes, so check with your local government.
What is the difference between short term vs long term rental rules in Canada?
The difference is mainly the length of stay. The CRA treats a short-term rental as a home rented for less than 90 days in a row. Toronto uses less than 28 days in a row, and Quebec uses 31 days or less. Always check which definition your city and province use.
Can I rent out my whole house as a short term vacation rental in BC?
Yes, but only if it is your principal residence where the rule applies. In communities over 10,000 people, you can rent your own home plus one extra unit, such as a secondary suite. Some places, such as Kelowna from 1 June 2026, have opted out.
Do short-term rental hosts in Canada pay tax on rental income?
Yes, hosts must report all rental income to the CRA. For tax years after 2023, the CRA can deny expenses on a non-compliant short-term rental. A rental is non-compliant if it is not allowed at that address or misses a registration, licensing or permit rule.
Is a short term room rental in Toronto treated differently?
Yes, renting rooms is treated more loosely than renting the whole home. Toronto hosts can rent up to three bedrooms in their principal residence with no yearly night limit. The 180-night cap applies only to entire-home rentals.
