A host who rents a whole home for 150 nights at $220 brings in $33,000. After a 3% platform fee, the $390 City registration and $4,000 of costs, about $27,620 is left before income tax. The host also collects $1,980 of Municipal Accommodation Tax from guests and remits it to the City.
Toronto’s short-term rental rules
Short-term rentals are allowed only in your principal residence, and you can run just one. Register with the City, renew every year and put your registration number in each listing. A stay under 28 nights counts as short-term, so longer bookings fall under different rules.
The 180-night limit
Up to three bedrooms in your home can be rented for as many nights as you like. A whole home is capped at 180 nights a calendar year. The calculator applies that cap to entire homes and shows a note if you enter more.
Registration and renewal fees
In 2026 the City charges $390 for registration and $390 for renewal, and the fee rises each year. The calculator deducts it from your income. Skip registration and the fine can reach $1,000. Check the City’s page before each renewal, because the amount is set again every year.
Municipal Accommodation Tax
Guests on stays under 28 nights pay a 6% Municipal Accommodation Tax. You collect it and remit it every quarter, within 30 days of the quarter end. It is never your income, so keep it apart from your rental earnings when you track the numbers.
HST on rentals
Once rental revenue passes $30,000 in four consecutive quarters, you must register for HST and charge 13%. Tick the HST box to see the tax to remit and the price a guest pays. Registrants may also claim credits on business costs, which this tool does not model.
Costs and income tax
Put cleaning, supplies, utilities and linen in the cost field. Platform fees vary, so enter your own rate. Profit from renting is taxable and goes on your return. A tax adviser can say which expenses count for a home you also live in.
A worked example
Take 150 nights at $220. Revenue is $33,000. The platform fee at 3% is $990, the City registration is $390 and yearly costs are $4,000. That leaves $27,620 before income tax. A guest pays $233.20 a night with the 6% tax, and $261.80 if the host also charges 13% HST.
Penalties, insurance and neighbours
Renting without registration, going over 180 nights or advertising without a number can bring fines from $700 to $1,000, and a conviction can cost much more. Regular home insurance may not cover paying guests, so ask your insurer about a short-term policy.
Tenants and condo owners should read the lease and the condo rules first, since many buildings ban short stays even when the City has registered you. Noise complaints can cause trouble as well. Set house rules, keep the guest list clear and give neighbours a phone number. A good record protects your registration, and a breach of the lease can cost you more than the rental earns.
Where to go next
Compare with a long-term rental in the rental property calculator. Check the HST rules in the GST and HST calculator. Estimate the tax on a sale with the capital gains tax calculator.
Frequently asked questions
How many nights can I rent my whole home in Toronto?
Up to 180 nights a calendar year.
How much does registration cost?
$390, and the 2026 renewal is $390.
What is the Municipal Accommodation Tax rate?
6% on stays under 28 nights.
Do I have to charge HST?
Yes, once revenue passes $30,000 in four quarters.
Can I rent a second property?
No. Only your principal residence is allowed.
Is the tax I collect my income?
No. You remit it to the City.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.