Airbnb and Short-Term Rental Taxes in Canada: Income and GST/HST

Prepared by Toronto Tax & Accounting Solutions Inc. and reviewed by Behroz Rizvi, owner. This article provides general information and may not apply to every tax situation.

Income from renting out your home or a room on Airbnb, Vrbo or a similar platform is taxable in Canada, whether you host regularly or only occasionally. You report the gross rental income and your eligible expenses on your personal return. Short-term stays are generally subject to GST/HST, and you must register once your taxable sales pass $30,000.

Rental income or business income?

Most hosting is reported as rental income on Form T776. If you also provide services to guests, such as meals or regular cleaning during a stay, the CRA may treat the income as business income reported on Form T2125. Which applies depends on what your guests receive, so tell us how your listing works and we will explain how it is reported. The CRA describes its approach on its sharing economy page.

Does Airbnb report hosts to the CRA?

Yes. Platforms that let people rent out property are covered by Canada’s Reporting Rules for Digital Platform Operators, which apply from 2024. The small-seller exclusion in the CRA’s list of excluded sellers applies to the sale of goods, not to rentals, so assume your platform reports your earnings to the CRA and make sure your return matches.

GST/HST on short-term stays

Short-term accommodation is generally taxable for GST/HST, while long-term residential rentals are exempt. You must register for GST/HST once your taxable sales pass $30,000 in a single calendar quarter or over four consecutive calendar quarters (CRA: when to register). Below that you are a small supplier and registration is optional.

Platforms have their own rules. Airbnb says that if you do not provide your GST, HST or QST ID, it will collect and submit those taxes on top of the price for listings in Canada (Airbnb help: GST/HST registration). The CRA explains how platforms are treated on its GST/HST for digital-economy businesses page. Whether you also have your own obligations depends on your registration and your sales, so we review your payout reports against your returns.

What you can deduct

The CRA says expenses must be reasonable, relate directly to earning the income, not be personal and be supported by your records (business expenses). For a host this usually means only the rental share of shared costs. Common examples:

• Platform host fees and payment fees
• Cleaning, laundry and guest supplies
• Utilities, internet and insurance for the rental share
• Property tax and mortgage interest for the rental share
• Repairs and maintenance
• Furnishings and appliances, which may be claimed over several years (current or capital expenses)

Deductions also depend on whether the rental is compliant. Section 67.7 of the Income Tax Act denies deductions from income earned after 2023 from a non-compliant short-term rental. The CRA describes that as one in a province or municipality that does not permit short-term rentals at that location, or one that does not meet all applicable provincial and municipal operating, registration, licensing and permit requirements. The amount denied is based on the number of days in the year the rental was non-compliant. For 2024 only, a rental that met all applicable registration, licensing and permit requirements by December 31, 2024 is treated as compliant for the whole year. If you rent only part of your home, you can claim only the expenses that relate to the rented part. See the CRA’s sharing economy page.

City rules are separate from tax

Registering your short-term rental with your city is a separate step from filing your tax return. In Toronto, see the City’s short-term rental requirements. Tax reporting does not complete any municipal registration.

Records hosts should keep

• Platform payout and earnings reports for the year
• Nights rented and nights used personally
• Receipts for cleaning, supplies, repairs and utilities
• Mortgage interest and property tax statements
• Your GST/HST account number and returns, if you are registered

Short-term rental tax questions

Do I report Airbnb income if I only hosted a few nights?

Yes. The income is reportable even if you host only occasionally.

Do I charge GST/HST on a room in my home?

Short-term accommodation is generally taxable, but you are only required to register once your taxable sales pass $30,000. Airbnb may collect the tax itself if you have not given it a GST/HST number.

Is renting a basement long-term treated the same way?

The rental income is still taxable and reportable, but long-term residential rentals are generally exempt from GST/HST. See our rental income tax page.

What if I did not report past hosting income?

The CRA says you may owe penalties and interest on unreported platform income, and that correcting your tax affairs voluntarily may avoid or reduce them, for example by asking for a change to a past return or applying under the Voluntary Disclosures Program. Contact us and we will review the years involved.

How we can help

Toronto Tax & Accounting Solutions Inc. prepares rental and short-term rental reporting from our Scarborough office or entirely online. Rental reporting starts from $149 in addition to the personal return fee, before HST. See rental income tax, our page for online sellers and content creators, or visit torontax.ca.

Related guides

• Tax and bookkeeping for online sellers and content creators
• GST/HST on online sales
• Hobby or business?
• Etsy taxes in Canada
• Amazon seller taxes in Canada

Official sources

• CRA: Reporting rules for digital platforms
• CRA: Who is affected
• CRA: Sharing economy
• CRA: When to register for and start charging the GST/HST
• CRA: GST/HST for digital-economy businesses
• CRA: Business expenses
• Airbnb: GST/HST registration (platform help page)
• City of Toronto: Short-term rentals

Last reviewed: November 8, 2026. This article is general information, not advice for a specific situation. Platform pages are linked for platform-specific statements.