Short-term rental rules in Niagara Falls, Ontario

The rules today

Who can host	Vacation Rental Units (whole dwelling, 28 days or less) are licensed to the property owner (18+); operators must hold a City licence. Owner Occupied Short-Term Rentals (OOSTR, principal residence, owner present) were a pilot that has closed to applications. Source
Where it is allowed	VRUs only in Tourist, General Commercial or Central Business zones (some exceptions apply; check zoning map); operating a VRU in a residential area is prohibited unless Council approves a planning application. OOSTR (pilot) was allowed at principal residences. Source
Limits	Vacation rental units: maximum 3 bedrooms, and two on-site parking spaces under Zoning By-law 79-200 (or site-specific zoning). Guest numbers follow the Ontario Building Code. The By-law requires commercial liability insurance. No on-street parking 2 a.m. to 6 a.m. Source
Licence process	Email application to businesslicensing@niagarafalls.ca with ID, deed, insurance, site/floor plan, parking plan, MAT paperwork, fire inspection (Fire Chief confirmation within 60 days), ESA certificate within 2 years, health certificate if private water/septic. Licence valid to April 30 each year (renewal notice mailed). Licence number must appear on all advertising and invoices/contracts; licence displayed conspicuously on premises; guest records kept 2 years; listing must exactly match licence (name, full address). Source
Fees	2026 Schedule of Fees: Vacation Rental Units, B&B and Owner Occupied STR: new licence/ownership change $500; annual renewal $250 (include fire inspection fee). Source
Taxes	A municipal accommodation tax applies to stays of 28 days or less. The City's tax page says 4% from April 1, 2026 and 5% from April 1, 2027, with quarterly remittance through the ORHMA portal. The City's rental handbook cites a different by-law number, so confirm the current rate and dates with the City. Source
Penalties	By-law 2021-57: fines of up to $50,000 for a first offence and up to $100,000 for each later offence. The City also issues administrative penalties of $1,000 per day for operating or advertising a vacation rental unit without a licence. Source

What changed in Niagara Falls

• September 30, 2026

  The owner-occupied short-term rental pilot ended and applications closed

  The City says Council will review the pilot and decide whether to continue it. We have not found that decision.

  What hosts should do: Do not apply; watch City page for Council decision.

  Source

• April 1, 2026

  MAT rises to 4% (City MAT page) and 5% on 2027-04-01; handbook gives different timing

  What hosts should do: Confirm rate with ORHMA/City before collecting; stays from June 1, 2026 remit via ORHMA portal.

  Source

Sources

• Vacation Rental Units (City page) (page updated not stated (2026 footer))
• Vacation Rental Unit Handbook (page updated file dated 2026-06-16)
• By-law 2021-57 (VRU and B&B licensing), passed May 11, 2021 (page updated 2021-05-11)
• Owner Occupied Short-Term Rentals (pilot ended) (page updated not stated (2026 footer))
• Schedule of Fees 2026 (page updated effective 2026-01-01)
• Municipal Accommodation Tax (page updated not stated)
• Enforcement news release (page updated 2026-08-06)

General information for hosts, not legal or tax advice. This page summarises the official sources above as of November 12, 2026. Check the source and your town before you act. See an error? Tell us and we will re-check it.