ONTARIO TAX

HST/GST on rental income in Ontario: when it applies and when it doesn't

Long-term residential rent is exempt from HST. Short-term stays under 30 days are treated as a commercial activity by the CRA — and the $30,000 small-supplier threshold combines every property you operate, not just one.

Updated 8 August 2026
Share:LinkedInEmail
Rules, rates and fees change — this page reflects publicly published sources as of 8 August 2026 and isn't legal or tax advice. Confirm current requirements against the sources linked below, or with a licensed professional, before making a compliance decision.

Long-term rent: generally exempt

Residential rent for a period of a month or more is generally exempt from GST/HST. This is the default a lot of operators mentally apply everywhere — which is exactly what causes trouble once the same portfolio also runs nightly stays.

Short-term stays are a different category entirely

The CRA treats a rental period under 30 continuous days, at a daily rate over $20, as a commercial supply — the same tax treatment as a hotel room, not as residential rent. Run any nightly-stay inventory in Ontario and that income counts toward HST registration, even inside a portfolio whose other units are all long-term leases.

The $30,000 threshold is portfolio-wide

You're required to register for GST/HST once your total taxable revenue exceeds $30,000 CAD across four consecutive calendar quarters — and if you operate multiple properties, their short-term income is combined to test that threshold, not assessed unit by unit. Once you cross it, you have 29 days to register.

Ontario's HST rate is 13%. If a booking platform is collecting and remitting on your behalf while you're unregistered, that doesn't remove the reporting obligation — the income still has to appear on your return.

Why this is a multi-line problem, not just an STR one

The operators most likely to get this wrong aren't dedicated Airbnb hosts — they're long-term-lease portfolios that quietly picked up a few nightly-stay units to cover vacancy. If your books don't already separate short-term from long-term income per unit, you won't notice you've crossed the threshold until a filing deadline forces the question.