Verified November 6, 2026 against City of Toronto, City of Mississauga, City of Brampton, Peel Public Health, Ontario and CRA pages listed under Sources.
Short answer: Yes, you can run many small businesses from a GTA home, but zoning decides what kind and how big. None of the three cities has a general “home business licence”. You need a City licence only if your business type is licensed anywhere in the city, such as hair and beauty services, renovation contractors, driving schools or food. The zoning rules are quite different from city to city. Toronto allows up to 25% of the home (maximum 100 square metres) and two employees. Mississauga limits home occupations to detached houses, four types of work and two clients at a time. Brampton allows home occupations only in single detached houses, at 15% of the floor area, while a new zoning by-law is under appeal.
The two tests: zoning and licensing
Every home-based business in the GTA has to pass two separate checks.
Zoning answers whether the use is allowed in your house at all. In zoning by-laws this is called a “home occupation”. The rules cover how much of the home you can use, whether clients can come to the door, how many people can work there, outdoor storage, signs and parking. Zoning applies to every home business, even one that needs no licence.
Licensing answers whether your type of business needs a City licence. Licences are tied to the business category, not to the fact that it runs from home. A bookkeeper working from a spare bedroom usually needs no City licence. A hairdresser, a renovation contractor or a home bakery usually does, and the licensing office will often ask for zoning approval first.
A third layer sits on top for some businesses: public health. Home food businesses and personal service settings such as hair, nails, esthetics and tattooing must notify the local public health unit and can be inspected.
If you are not sure what applies to your business, the federal and provincial BizPaL tool lists permits and licences by city and business type. All three cities point to it.
Toronto, Mississauga and Brampton compared
| Rule | Toronto (569-2013, s.150.5) | Mississauga (0225-2007, s.4.1.16) | Brampton (270-2004, s.6.12) |
|---|---|---|---|
| Which homes | A dwelling unit, living accommodation or ancillary building that is the operator’s principal residence | Detached dwelling only. Not in an attached or detached additional residential unit | Single detached dwelling only. May use an accessory building or private garage |
| Floor area | Lesser of 25% of interior floor area or 100 m² | 25% of residential gross floor area, maximum 50 m², above and below grade counted | 15% of gross floor area, excluding the basement or cellar |
| What you can do | Most business uses, minus a prohibited list (see below) | Only tutoring, music instruction, artist or artisan, and office | Most uses, minus a prohibited list (see below) |
| Staff who do not live there | Up to 2 employees plus the operator | None | Not more than 1 person outside the resident family |
| Clients at the home | Not allowed for most uses. Allowed for education use, artist studio, office, service shop and custom workshop | Maximum 2 at any one time | Not limited in the general rule; only goods made on the premises may be sold |
| Outdoor storage or display | Not allowed | Not allowed | Not allowed |
| Signs and exterior | No exterior alteration to the building | No visible indication from the exterior | One sign attached to the building, up to 0.15 m²; exterior must not change |
| Parking | No extra space required | One additional space required (tandem allowed) | No home occupation parking rule confirmed |
| How many businesses | Not limited in the clauses reviewed | One | One |
All three cities also bar businesses that create noise, fumes, odours or other nuisances noticeable outside the home. If zoning terms like R1 or RM are new to you, our guide to Ontario zoning codes explains how residential zones work.
Toronto rules
Toronto’s home occupation rules are in Section 150.5 of city-wide Zoning By-law 569-2013. The City’s consolidation includes the most recent change, By-law 1508-2025, enacted December 17, 2025.
What a Toronto home occupation may not be
Under regulation 150.5.20.1(1), a home occupation may not:
- sell, rent or lease physical goods directly from the dwelling unit;
- be a personal service shop, except barber, hairdresser, beautician, dressmaker, seamstress and tailor, which the by-law permits under 150.5.20.1(7);
- be an office or medical office for a regulated health professional, except as the by-law allows under 150.5.20.1(8);
- be an animal shelter or kennel;
- be a vehicle repair shop, vehicle service shop or vehicle washing establishment; or
- be a manufacturing use.
It also must not operate as a warehouse for distributing goods. That matters for online sellers: running an online shop from home is a business use, but storing and shipping stock as a distribution warehouse is not allowed.
Clients, staff and space
Most Toronto home occupations may not have clients or customers attend for consultations, services or picking up goods. The by-law exempts an education use, artist studio, office, service shop and custom workshop from that rule. Music or dance instruction may only be in a detached house or a detached ancillary building.
A home occupation may have two employees working in the dwelling unit in addition to the business operator. It can use up to 25% of the interior floor area of the home or 100 square metres, whichever is less, and space in an ancillary building such as a garage studio counts toward that total. There may be no exterior alteration to the building, and no outdoor activities, display or open storage.
Toronto requires no extra parking space for a home occupation in the operator’s principal residence, and a lawful parking space inside the house or a garage can be used as floor area for the business.
For hair, esthetics and other personal service settings, the City says you should have zoning approval before you request a health inspection or apply for a licence. The City offers a zoning review for business licences through Toronto Building.
Mississauga rules
Mississauga is the strictest of the three. Section 4.1.16 of Zoning By-law 0225-2007 permits a home occupation only within a detached dwelling in a Residential zone, and only for four uses: tutoring, music instruction, artist or artisan, and office.
The main conditions:
- It may use up to 25% of the residential gross floor area of the house, to a maximum of 50 square metres, counting space above and below grade.
- Only one home occupation per house, and the house must be the operator’s principal private residence.
- No staff who do not live in the house.
- No more than two clients at any one time.
- No outdoor storage or display, and no visible sign of the business from outside.
- One additional parking space must be provided. Tandem parking is allowed.
- No noise, vibration, fumes, odour, dust, glare or radiation detectable outside.
A home occupation is not permitted in an attached or detached additional residential unit, such as a basement apartment or garden suite.
Home office in townhouses and condos
If you live in a townhouse, semi or apartment, a separate “home office” provision may apply. Under Table 2.1.9.12 a home office is permitted within a dwelling unit in many residential and some commercial zones, with a maximum floor area of 15 square metres, no clients attending, no non-resident staff, no outdoor storage and nothing visible from the exterior. For a remote worker or consultant who never sees clients at home, this is usually the rule that matters.
Food and catering
The City’s “Running a business from home” page states that the Zoning By-law does not permit home-based food preparation, cooking or catering businesses. The City also says home occupations and home offices need a Zoning Certificate of Occupancy.
Brampton rules
Brampton is in a transition. Council adopted a new Comprehensive Zoning By-law, 14-2026, on February 4, 2026, but the City’s website says it is under appeal at the Ontario Land Tribunal. Until the appeals are resolved, both the old By-law 270-2004 and the new by-law apply, and the more restrictive provision governs. The City’s summary of the new by-law says it allows more floor area for home occupations, up to 25%, with limits on size, clients and employees. We could not review the detailed new clauses, so the table above shows 270-2004.
Home occupation under By-law 270-2004
Section 6.12.1 allows a home occupation only within a single detached dwelling. It must be secondary to the home’s use as a private residence and run by the occupant or a family member who lives there. The main limits:
- No more than 15% of the gross floor area of the dwelling, excluding the basement or cellar.
- Not more than one person employed other than family members living there.
- It may be carried out in an accessory building or private garage.
- No outside storage of materials, goods or vehicles for the business.
- Only goods made on the premises may be sold, and the exterior must not change.
- One sign attached to the building, no larger than 0.15 square metres.
- One home occupation per dwelling.
Motor vehicle or engine repair, massage or body rub parlours and any use that creates or is likely to create a nuisance are prohibited.
Office home occupation in any dwelling
Section 6.12.2 allows an office home occupation in any dwelling unit, including townhouses and apartments: one office per unit, 15 square metres or less, no more than one visitor at a time, no other employee on the premises, no exterior sign, and no goods sold or kept for sale. It cannot be a health care practitioner’s office. The City’s by-law enforcement summary page describes the employee rule differently, so ask Zoning to confirm before you hire.
Which home businesses need a City licence
None of the three cities issues a general home-business licence. You need one only when your business type is on the City’s licensing list. These are the categories home-based owners most often run into.
| Business type | Toronto | Mississauga (2026) | Brampton |
|---|---|---|---|
| Personal services (hair, esthetics, nails, tattoo) | Personal Service Setting: $450.91 total new ($211.73 application + $239.18 licence); renewal $296.45 | $255.21 new; $230.17 renewal | $217 per class; expires May 31 each year |
| Renovation and trade contractors | Building Renovator: $495.12 total new; trade exam $79.65; renewal $293.14 | Trades: $255.21 new; $220.04 renewal; exam $79.48 incl. HST | Licensed category; fee not confirmed |
| Food premises | Licence depends on type; TPH notification required | Eatery: $225.66 new (home food not permitted by zoning) | Fixed Food Premises: $209; expires January 31 |
| Driving schools and instructors | Licence required; fee not shown on City page | Operator or instructor: $197.25 new | Not reviewed |
Fees are as shown on City pages and fee schedules on November 6, 2026. Toronto’s pages do not label fees by year. Check the current amount when you apply.
Licensed businesses usually also need proof of insurance. Mississauga’s personal services and trade licences and Brampton’s personal services and food licences call for $2 million in liability insurance. Brampton asks home-based personal service businesses for a scale floor plan of the rooms used for the business, and both Peel cities ask for zoning approval as part of the application.
Food and personal services: public health
Home food businesses. Toronto Public Health treats a home kitchen used to prepare food for sale as a food premise. Home-based food premises must notify TPH before operating, and inspection results are posted on DineSafe. In Peel, operators must notify Peel Public Health when starting a home-based food business. Peel inspects low-risk operations at least once a year, moderate-risk at least twice and high-risk three times. Moderate and high-risk operations need food handler certification and a designated handwashing sink. Peel is clear that a public health inspection alone does not give approval to operate; zoning and licensing still apply. In Mississauga, the zoning by-law does not allow home food businesses at all.
Personal service settings. Under Ontario Regulation 136/18, hair, nail, esthetics, tattoo, piercing and similar businesses must notify public health at least 14 days before opening. In Toronto that is through BodySafe; in Mississauga and Brampton it is Peel Public Health. Toronto says inspections are likely once a year.
Business name, HST and home office expenses
- Business name. A sole proprietor operating under any name other than their own legal name registers it through the Ontario Business Registry. The fee is $60 for a new registration or renewal.
- HST. You need a CRA business number if you need a GST/HST, payroll or other CRA program account. You can stay a small supplier, and not register for GST/HST, while taxable revenue is $30,000 or less in a single calendar quarter and over the last four consecutive quarters.
- Business-use-of-home expenses. The CRA lets you claim part of home costs if the space is your principal place of business, or if you use it only for the business and regularly meet clients there. The claim goes on Form T2125, and it cannot create or increase a business loss.
This guide is general information, not legal or tax advice. Confirm your situation with the City, a lawyer or an accountant.
If you own the home, claiming part of it for business can have tax effects when you sell. Ask your accountant how it interacts with the principal residence exemption before you claim.
If you are buying a home to run a business
A home business can change which house fits you. Before you firm up an offer, check these points:
- House type. In Mississauga and under Brampton’s 270-2004 rules, a full home occupation needs a detached house. A townhouse or condo limits you to a small home office.
- Space you can count. Brampton’s 15% excludes the basement. Mississauga counts the basement but caps the area at 50 square metres. Toronto’s cap is the lesser of 25% or 100 square metres.
- Secondary suites. If you plan to rent a basement unit too, note that Mississauga does not allow a home occupation in an additional residential unit. Our guides on renting out a basement in Toronto and registering a Brampton basement apartment cover those rules.
- Parking. Mississauga requires one extra parking space for a home occupation. Measure the driveway.
- Condo rules. A condominium’s declaration and rules can restrict business use of units beyond what zoning allows. Read them in the status certificate package.
- Zoning check. Ask the City’s zoning office about the specific address before you commit, especially in Brampton while the new by-law is under appeal.
If you are planning a move and need space for work, our team can help you find a GTA home that suits a home business. Thinking of selling first? Start with a free home evaluation.
FAQ
Do I need a business licence to work from home in Toronto, Mississauga or Brampton?
Not for most office-type work. None of the three cities has a general home business licence. You need a City licence only if your business type is licensed, such as personal services, renovation contractors, food premises or driving schools. Zoning rules still apply to every home business.
Can I run a hair or nail business from my home?
It depends on the city. Toronto’s zoning permits barber, hairdresser and beautician home occupations, subject to the by-law’s conditions, and you need a Personal Service Setting licence and a public health inspection. Mississauga’s home occupation list does not include personal services. In Brampton, a personal services licence application for a home must meet the zoning by-law and include a floor plan. In every case, notify public health at least 14 days before opening.
Can I sell baked goods or meals from my home kitchen?
In Toronto and Brampton, a home food business must notify public health and can be inspected. Brampton licenses fixed food premises, so ask the City’s licensing office whether your home operation needs that licence. Mississauga’s zoning by-law does not permit home-based food preparation, cooking or catering businesses.
How many clients can come to my home business?
Mississauga allows up to two clients at a time. Brampton’s office home occupation allows one visitor at a time. Toronto bars client visits for most home occupations but exempts education uses, artist studios, offices, service shops and custom workshops.
Can I hire employees for my home business?
Toronto allows two employees in addition to the operator. Brampton allows one person outside the resident family for a home occupation in a detached house. Mississauga does not allow staff who do not live in the house.
Can I put a sign on my house?
Brampton’s 270-2004 allows one sign attached to the building, up to 0.15 square metres. Mississauga requires no visible indication of the business from outside. Toronto’s home occupation section bars exterior alterations to the building; check the Sign By-law before installing any sign.
Sources
- City of Toronto, Zoning By-law 569-2013 Chapter 150.5 Home Occupation (consolidation including By-law 1508-2025, enacted December 17, 2025).
- City of Toronto, Personal Service Settings licence and Building Renovators licence (both modified October 1, 2026).
- City of Toronto, Business Regulations, Licences and Permits (modified September 17, 2026).
- Toronto Public Health, Starting a Food Business (updated November 4, 2026) and About BodySafe (modified January 26, 2026).
- City of Mississauga, Running a business from home (modified October 20, 2025).
- Mississauga Zoning By-law 0225-2007, Part 4 General Provisions and Part 2 (revised June 30, 2026).
- City of Mississauga, 2026 Business Licence Fees and Personal services licensing (modified July 27, 2026).
- Brampton Zoning By-law 270-2004, Sections 6 to 9 General Provisions and Zoning By-law Review (status of By-law 14-2026).
- City of Brampton, Stationary Business Licensing, with the Personal Services and Fixed Food Premises requirement sheets.
- Peel Public Health, Starting a home-based food business and Personal service businesses.
- Ontario, Cost to register a business name (updated September 29, 2026).
- CRA, RC4022 General Information for GST/HST Registrants (January 7, 2026) and Business-use-of-home expenses (August 31, 2026).
Not covered because it could not be verified for this guide: the detailed home occupation clauses of Brampton By-law 14-2026, Toronto’s Sign By-law rules for home businesses, and Mississauga’s Zoning Certificate of Occupancy fee.
Images: AI-generated illustrations created for this guide. They do not show real properties.
Local Toronto, HomeLife Landmark Realty Inc., Brokerage.