Airbnb Rules in Toronto, Mississauga and Brampton (2026): Who Can Still Host, the 180-Night Cap and the Costly Mistakes

You bought a condo near the airport, furnished it, and the numbers on Airbnb look better than a 12-month lease. In Toronto, Mississauga and Brampton, that plan is not legal. All three cities allow short-term rentals only in the home where you actually live. An investment property cannot be a licensed short-term rental in any of them.

The short answer: you can host on Airbnb or VRBO in these cities if the unit is your principal residence and you register or get a licence first. Toronto charges $390 a year, Mississauga $283 and Brampton $150. Toronto and Brampton cap rentals at 180 nights a year, guests pay a 6% Municipal Accommodation Tax in Toronto and Mississauga, and fines can reach $100,000. A federal tax rule also takes away your expense deductions for any period you operate without the required licence.

Rules checked October 12, 2026, against each City’s by-law and official pages. Sources are listed at the end.

Can you host? Eligibility and cost checker

Answer a few questions to see whether your home qualifies, what you will pay to the City, and how much accommodation tax to collect.

The checker is a planning aid based on each City’s published rules. It does not replace registration or a review of your condo documents or lease.

The one rule all three cities share: principal residence

Your principal residence is where you live most of the time, and the address you use for your driver’s licence, bills, taxes and insurance. You can only have one. That single rule ends most investor plans:

• A second condo, a pre-construction unit you just closed on, or a house you bought to rent cannot be a short-term rental.
• You cannot live in one unit of a two-unit house and short-term rent the other. You can only host in the unit you live in.
• You can host in a basement suite, laneway suite or garden suite if that suite is where you live. Toronto says this directly.
• Renting your home while you travel is the use the rules are designed for.

Cities check principal residence at registration with documents such as your driver’s licence, a utility bill or a tax return. Brampton’s licence becomes invalid automatically if you sell or move out.

Toronto short-term rental rules

• Registration: required before you list. The fee is $390, non-refundable even if refused, and goes up each year. Registration lasts one year.
• Choose your type: you register as either an entire-unit operator or a partial-unit operator for the whole year.
• Night cap: the entire home for up to 180 nights per calendar year. Up to three bedrooms while you live there, with no yearly limit.
• Who can register: owners and renters, in any housing type including condos. Toronto does not require a renter to get landlord consent to register, but the lease still applies and the landlord can go to the Landlord and Tenant Board. Condo owners must follow their condo’s by-laws and rules.
• Accommodation tax: the Municipal Accommodation Tax was a temporary 8.5% from June 2025. It went back to 6% for stays starting August 1, 2026. Operators file MAT reports with the City, even when a platform collects the tax.
• Accountability: the City holds the registered operator responsible, not a property manager or co-host company.

Toronto’s by-law (Municipal Code Chapter 547) allows fines of up to $100,000. Third-party guides list ticket amounts of $1,000 for operating without registration and $700 for exceeding 180 nights. We could not confirm those on a City page, so treat them as indicative.

Mississauga short-term rental rules

• Definition: renting all or part of your home for up to 30 consecutive days. That is longer than Toronto and Brampton, so a 29-night stay is still short-term in Mississauga.
• Licence: $283 a year in 2026, valid one year. Expect the process to take a month or more.
• To apply: be 18 or older, provide a Level 1 criminal record check from Peel Regional Police issued in the last 60 days, show proof of principal residence, attend the inspection yourself and provide $2 million in liability insurance.
• Second units: in a home with an additional residential unit, you can rent only the unit you live in.
• Condos and renters: condo owners must show the corporation permits short-term rentals. Renters need written permission from the landlord.
• Tax: 6% MAT on each stay, reported monthly. Keep guest records for three years.
• Safety and neighbours: a posted evacuation plan at every exit, working smoke and CO alarms, a 24/7 emergency contact, indoor temperature of at least 20°C, approved enclosures for pools and hot tubs, and street parking limited to five hours with none from 2 to 6 a.m.

Fines start at $500 per offence and reach $100,000, or $10,000 a day for continuing offences. Hosting a nuisance gathering can also bring fines up to $100,000. Unpaid penalties can be added to the property tax bill.

Brampton short-term rental rules

• By-law: Short-Term Rental By-law 165-2021, amended in 2026 by By-laws 47-2026 and 106-2026.
• Licence: $150 to apply or renew, rising with inflation. A $50 late renewal fee applies.
• Night cap: no more than 180 nights per calendar year, whether you rent the whole home or rooms.
• Rooms: no more than three bedrooms rented individually at one time.
• Occupancy: one guest per 14 m² (150 sq ft) of habitable floor area. Children under 12 count as half. Sleeping rooms need at least 5.6 m² and 1.83 m of width, and 3.7 m² per person when shared.
• Insurance: at least $2 million per occurrence, with 15 days’ notice to the City if it is cancelled.
• Background check: no pending charges and no convictions in the past three years.
• Two-unit homes: allowed with proof of principal residence and written landlord permission. Brampton says operating investment properties as short-term rentals is no longer permitted.

Fines under the by-law run from $500 to $100,000, up to $10,000 a day for continuing offences, plus a special fine equal to the money made from operating illegally. In April 2026, the City also proposed graduated administrative penalties of $500, $750 and $1,000 for offences such as operating without a licence, renting a home that is not your principal residence, and exceeding 180 nights.

Note that a Brampton short-term rental licence is separate from the Residential Rental Licence for long-term tenants. Short-term rentals are exempt from that program because they have their own licence.

The federal tax rule most hosts have not heard about

Since 2024, section 67.7 of the Income Tax Act denies deductions for short-term rentals that do not comply with provincial or municipal rules. If your city requires a licence or registration and you do not have one, you lose deductions such as mortgage interest, insurance, platform fees and cleaning for the non-compliant period. For this rule, a short-term rental is any residential property rented for less than 90 consecutive days.

The CRA can reassess this at any time, with no normal time limit. A host who earned $30,000 on an unregistered unit could end up paying tax on most of the gross income, not the profit. Speak to an accountant about your situation.

Three real-world scenarios

Scenario 1 (hypothetical): travelling nurse in Toronto

Aisha owns a one-bedroom condo downtown and works three-month contracts in other cities. She wants to rent her condo on Airbnb while she is away.

• The condo is her principal residence, so she can register as an entire-unit operator for $390.
• She can book up to 180 nights a year. At $180 a night for 150 nights, she collects $27,000 plus 6% MAT, about $1,620, which Airbnb collects for her.
• First she must confirm her condo’s declaration and rules allow it. If they ban stays under a set minimum, registration with the City does not override that.
• An easier option for a three-month contract: lease the condo to one tenant for 90 days or more, which avoids the short-term rules completely.

Scenario 2 (hypothetical): a Brampton basement apartment

Harjit lives upstairs in his Brampton house and has a registered basement apartment. He wants to list the basement on Airbnb.

• Not allowed. The basement is not his principal residence. Only the unit he lives in qualifies.
• If he and his family moved into the basement and lived there, they could then short-term rent the basement unit, but not the upstairs.
• The legal income route for the basement is a long-term tenant with a Residential Rental Licence. See our Brampton basement apartment guide.

Scenario 3 (hypothetical): an investor buying a Mississauga condo near Square One

A buyer sees a listing marketed as “Airbnb-ready, $4,500 a month on short-term”.

• As an investment unit, it cannot be licensed as a short-term rental in Mississauga.
• Value it on long-term rent and check the condo’s rules on rentals and minimum lease terms.
• Ask whether the current owner was licensed. Revenue earned illegally is not revenue you can count on, and it will not satisfy a lender.

Common mistakes that cost hosts money

1. Buying a property “for Airbnb”. In all three cities, a property you do not live in cannot be a licensed short-term rental.
2. Assuming the platform keeps you compliant. Airbnb collects MAT in Toronto, but it does not stop you at 180 nights or check your principal residence for you.
3. Ignoring the condo. City registration and a condo ban are separate. Ontario courts have upheld condo rules that prohibit hotel-like short-term rentals.
4. Using the wrong length. A 28-night stay is not short-term in Toronto or Brampton, but it is in Mississauga. Check your city’s definition before you call it a monthly rental.
5. Forgetting tax. You still report rental income to the CRA. Without a licence, the deductions can disappear.

What this means for buyers, sellers and property value

• Buying: value any property on its legal long-term rent. Short-term income is only relevant if you will live there.
• Condos: read the declaration, rules and status certificate for rental restrictions. Some buildings set minimum lease terms of several months.
• Insurance: tell your insurer you host. A standard homeowner or condo policy may not cover paying guests. Mississauga and Brampton require $2 million in liability coverage.
• Mortgage: lenders generally do not count short-term income from a home that cannot be licensed for that use.
• Property tax: hosting does not change your tax rate, but your property tax bill is still a fixed cost to include when you calculate whether hosting is worth it.

Comparing a home to live in that can also earn income? We can help you weigh a legal basement unit, a garden suite or room rentals against short-term hosting. Start with a free home evaluation.

How to register, step by step

1. Confirm the home is your principal residence and gather proof: driver’s licence or Ontario photo ID, and a bill or tax document at that address.
2. Check your condo or lease. Condo owners: read the declaration and rules. Renters: get written landlord permission (required in Mississauga and Brampton).
3. Get insurance with at least $2 million liability in Mississauga and Brampton, and tell your insurer about hosting anywhere.
4. Apply online. Toronto: the City’s short-term rental registration page. Mississauga: the City’s short-term rental licence page, with a criminal record check and an inspection. Brampton: the online business licence application, with a floor plan, fire code declaration and criminal record search.
5. Prepare the home: working smoke and CO alarms, posted emergency contacts and exits, and a guest information package.
6. List with your number on every advertisement, track nights across all platforms, and keep records for three years.
7. Collect and report MAT in Toronto and Mississauga, even where the platform remits it.

Frequently asked questions

Is Airbnb legal in Toronto?

Yes, in your principal residence, with a $390 yearly registration. The entire home can be rented up to 180 nights a year. Rooms in a home you live in have no yearly limit.

Can I Airbnb my investment condo in Mississauga?

No. Mississauga only licenses short-term rentals in the host’s principal residence. Rent it on a lease longer than 30 days instead.

How much does a short-term rental licence cost in Brampton?

$150 to apply or renew, rising with inflation each year, plus a $50 fee for late renewals.

Can I Airbnb my basement apartment?

Only if you live in it. In all three cities, you can host only in the unit that is your principal residence, not a second unit you rent out.

What is the Municipal Accommodation Tax on Airbnb?

6% in Toronto for stays from August 1, 2026, down from a temporary 8.5%, and 6% in Mississauga. We did not find a Brampton accommodation tax on short-term rentals.

Do I need my landlord’s permission to host?

In Mississauga and Brampton, yes, in writing. Toronto does not require it to register, but your lease may prohibit it and your landlord can apply to the Landlord and Tenant Board.

Is a 30-day rental a short-term rental?

In Toronto and Brampton, no: short-term means under 28 consecutive days. In Mississauga, yes: short-term means up to 30 consecutive days. For the federal tax rule, anything under 90 days counts.

What happens if I go over 180 nights?

In Toronto (entire home) and Brampton, it is an offence that can bring fines, and in Brampton a proposed $500 to $1,000 administrative penalty. Your registration or licence can also be suspended or revoked.

The takeaway

Short-term hosting in the GTA is for people renting out the home they live in, not for investors. If that is you, register first, check your condo or lease, carry the right insurance, track your nights and collect the tax. If it is not, the money is in a legal long-term rental, a registered second unit or a garden suite.

Planning to rent long-term instead? Read how many people can legally live in a house and our Mississauga second unit guide.

Sources and verification

Checked October 12, 2026.

• City of Toronto, Short-term rental operators and hosts
• City of Toronto, Short-term rental Municipal Accommodation Tax
• City of Mississauga, Short-term rental operator’s guide (2026)
• City of Mississauga, Short-Term Rental Accommodation Licensing By-law
• City of Brampton, Short-Term Rental By-law 165-2021, office consolidation
• City of Brampton, Short-term rental accommodations
• City of Brampton, Public notice: STR by-law amendments and graduated fines (April 2026)
• Bennett Jones, Comply or lose your tax deductions (Income Tax Act s. 67.7)
• Bob Aaron, Ontario court upholds condo rule banning short-term rentals
• Guestable, Toronto short-term rental fines (third-party, not confirmed on a City page)

Written and researched by Local Toronto Editorial. This guide is general information, not legal or tax advice. Confirm with your city and a qualified professional before hosting.