Short-term rentals (STRs) are allowed in the City of Vaughan as of January 1, 2020—but only if the rental is the owner’s or tenant’s principal residence and a valid license is obtained. This includes listings on Airbnb, VRBO, and other platforms. Below is an updated 2025 guide on legally operating a short-term rental in Vaughan.
What Is a Short-Term Rental in Vaughan?
A short-term rental (STR) is renting a residential unit or part of it for 29 consecutive nights or less in exchange for payment. Property owners or tenants/lessees can host short-term rentals (STRs).
Licensing Requirements for Owners and Platforms
Under the City’s Short Term Rental Licensing By-law 158-2019, individuals (homeowners or tenants) and brokerages (e.g. Airbnb, Expedia, VRBO) must obtain a license to operate in Vaughan.
How to Apply for a Short-Term Rental License in Vaughan
As of 2025, here’s how hosts can apply:
1. Get a MAT (Municipal Accommodation Tax) Number:
Apply through vaughan.ca. You’ll need this to collect and remit the 4% tax.
2. Complete the Short-Term Rental License Application Form:
The form is available online or at Vaughan City Hall. Required documents include:
- Government-issued ID
- Proof of residence (e.g. utility bill, tax bill)
- Property owner consent (if you’re a tenant)
- Condo board approval (if applicable)
3. Pay the Required Licensing Fees:
- Initial license fee: $206
- Annual renewal fee: $175
- Fees are subject to city updates. Always confirm at the time of application.
4. Submit in Person or Online:
You can drop off the completed application and documents at Vaughan City Hall’s Licensing Services counter (Monday through Friday, 8:30 a.m. to 4 p.m.).
Owner Responsibilities After Licensing
Once licensed, STR owners must:
- Display the license near the main entrance of the rental unit.
- Comply with the Ontario Building Code and Fire Code, including occupancy limits.
- Install smoke alarms on every floor and carbon monoxide alarms near each bedroom (especially if there’s a fireplace, fuel-burning appliance, or attached garage).
- Collect and remit the 4% MAT to the City (if not using a platform that does it on your behalf).
- Renew the license yearly.
- Notify the City in writing within 7 days of any changes to the original application.
Municipal Accommodation Tax (MAT) in Vaughan
Every short-term rental is subject to a 4% Municipal Accommodation Tax (MAT) effective April 1, 2020. This applies to the full rental price, excluding HST. Hosts must:
- Itemize the MAT as a separate line on guest receipts (if self-managed).
- Register and obtain a MAT account number before licensing.
- Remit MAT payments monthly or quarterly as directed by the City.
Enforcement and Penalties
Vaughan actively enforces short-term rental rules. Penalties include:
- Operating without a license: Up to $25,000 for individuals and $50,000 for corporations.
- Failure to remit MAT: Subject to interest, penalties, and fines.
- Violations of zoning, fire, or noise bylaws: May result in ticketing, inspections, and legal action.
To avoid penalties, always operate within the guidelines and keep documentation current.
Other Considerations
- Principal Residence Only: You can only list the home where you primarily live. Investment properties are not eligible.
- Tenants may apply with the owner’s permission.
- Condo restrictions apply: Some condo boards prohibit short-term rentals (STRs) even if the City licenses them.
- Insurance recommendation: Hosts should obtain proper liability coverage, including coverage for short-term rental operations.
Explore our services for Airbnb Management Vaughan for expert help setting up and managing your listing. We’ll help you stay compliant while maximizing your rental income. To get more information about other short-term rental regulations, you can also visit Vaughan’s official website or contact us.