As of January 19, 2021, the City of Mississauga enforces the Short Term Accommodation By-Law, requiring hosts to obtain a business license to operate short-term rentals. This applies to rentals of all or part of a dwelling for periods less than 30 consecutive days.
Business License
Hosts must obtain a Short-Term Accommodation License, which costs $250 per year. Applications can be submitted online or at the Compliance and Licensing Enforcement office. Renewals are required each year, and the same fee is maintained.
Principal Residence Requirement
Short-term rentals are permitted only in the host’s principal residence—the address used for bills, taxes, and official correspondence. This includes legal secondary units, such as basement apartments, provided they are the host’s primary dwelling.
Application Requirements
To apply for a license, hosts must provide:
- Proof of age (18+), such as a driver’s license or passport
- A criminal record check issued within the last 60 days
- Proof of $2 million liability insurance specific to short-term rentals
- Evidence of principal residence (e.g., recent utility bill or tax document)
- Contact information for the person responsible for the rental
- Written consent from the property owner if the host is a tenant
- Approval from the condominium board, if applicable
- A fire safety plan, site plan, and floor plan of the rental area
Compliance and Operational Standards
Once licensed, hosts must:
- Display the license number on all advertisements and listings
- Provide guests with the license number, fire safety plan, parking instructions, and information on local by-laws
- Maintain records of guest names and rental transactions for at least three years
- Ensure the rental complies with all fire codes, building codes, and property standards
Taxes and Financial Obligations
- Municipal Accommodation Tax (MAT): A 4% tax applies to all short-term rentals. Platforms like Airbnb typically collect and remit this tax on behalf of hosts.
- Harmonized Sales Tax (HST): Hosts earning over $30,000 annually from short-term rentals are required to register for, collect, and remit HST. Those earning less may choose to register voluntarily.
- Income Tax: Rental income must be reported to the Canada Revenue Agency. As of 2025, deductions related to non-compliant short-term rentals are disallowed.
Enforcement and Penalties
Non-compliance with the Short Term Accommodation By-Law can result in fines up to $100,000. The city conducts regular inspections and has a dedicated enforcement team to handle complaints and ensure adherence to regulations.
Explore our services for Airbnb Management in Mississauga for hosts seeking professional assistance to navigate Mississauga’s short-term rental regulations and enhance their hosting experience. To get more information about other short-term rental regulations, you can also visit Mississauga’s official website or contact us.