Newmarket takes short-term rentals seriously. The Town requires a license, requires a Permanent Resident to be physically in town the entire time guests are staying, caps guests at six, and enforces parking rules strict enough to disqualify most condos. Add the 4% Municipal Accommodation Tax that took effect in 2025 and you have one of the strictest markets in York Region.
Every rule below is sourced from Business Licence By-law 2020-31 and the Town of Newmarket business licensing page.
Quick Summary
The Newmarket STR Bylaw
Newmarket regulates short-term rentals through Business Licence By-law 2020-31, enacted June 29, 2020. The bylaw defines a Short Term Rental as a dwelling unit used to provide temporary sleeping accommodation for any rental period that is less than 28 days. Stays of 28 days or longer fall outside the STR definition.
The program is administered by Newmarket's Licensing Division. Licenses are issued for one year and must be renewed annually. For current license fees, contact licensing@newmarket.ca or call 905-953-5300 ext. 2221.
Permanent Resident Rule (Stricter Than Toronto)
This is the rule that catches most aspiring Newmarket hosts off guard. Unlike Toronto, where principal residence is a continuity-of-occupancy test that tolerates vacations and business travel, Newmarket requires a Permanent Resident to be physically present in town the entire time guests are staying.
"An Operator of a Short Term Rental shall ensure that a Permanent Resident on the property is present and available within the Town at all times while guests are staying on the Premises, and is able to respond to concerns raised by guests, neighbours, or the Licensing Officer within two (2) hours."
Business Licence By-law 2020-31, §8.2(9)
What this means in practice:
- The Permanent Resident (defined in §1 as "a Person who normally resides in a dwelling on the Lot") must be in Newmarket the whole time you have guests.
- You can't accept a Newmarket STR booking and then fly to Cancun for the week.
- If you don't physically live there, you can name a Permanent Resident (e.g. a tenant) and provide a tenancy agreement at application time per §8.2(8), but that person still has to be in town while guests are booked.
- Investment properties without an onsite resident are not eligible.
If you own a Newmarket property where no one is permanently living onsite, your legal options are:
- Long-term rental under the Residential Tenancies Act (typical 12-month lease)
- Mid-term rental of 28 days or more (exempt from the STR bylaw)
- Sell or hold if neither fits your strategy
Mid-term rentals (28+ nights) are popular for corporate relocations, travelling healthcare workers at Southlake Regional Health Centre, and insurance displacement guests. Furnished 30-night minimum listings sidestep the STR bylaw entirely.
License Requirements
Newmarket's STR license comes with operational rules that apply for the entire license year. Key requirements:
Property and Occupancy Limits
- One STR per lot. Multi-unit properties cannot run separate STRs out of each dwelling.
- One dwelling unit only. The STR must be within a single dwelling unit; mixing units is prohibited.
- Max 3 bedrooms offered as STR at any one time.
- Max 6 overnight guests regardless of property size.
Local Contact Person
Per §8.2(9), the Permanent Resident onsite must be able to respond to concerns from guests, neighbours, or the Licensing Officer within two (2) hours. Per §8.2(10), the operator must give every guest and the Licensing Officer the phone number of the person available to respond.
Note this works together with the "must be in town" rule above: the 2-hour clock applies, but the responder also has to actually be in Newmarket the whole time guests are present.
Advertising Requirements
- Display the business license number on every listing across Airbnb, VRBO, Booking.com, and any other platform
- Market only on platforms approved by the Town
- Advertising an STR without a valid license is itself a bylaw offense
The Parking Rule (Strictest in York)
Parking is where Newmarket's bylaw disqualifies the most applicants. The Town requires:
- One off-street parking space per bedroom offered for STR, AND
- One additional off-street parking space for the permanent resident
If you rent out 3 bedrooms (the maximum), you need 4 off-street parking spaces on the property. That rules out most condos, many townhouses with single-car garages, and any property that relies on street parking for overflow. Tandem driveway spaces (one behind the other) do not count toward the off-street minimum.
How to Apply
The license application is administered by Newmarket's Licensing Division. The official Short Term Rental Operator Application Form lists the following required documents:
- Proof of Canadian citizenship, landed immigrant status, or valid work permit
- Proof the applicant is at least 18 years of age
- Proof of Permanent Resident onsite (ID with address, tenancy agreement, etc.)
- Sketch of floor plans identifying the location and number of bedrooms used for STR
- Sketch of the proposed sign (per the Town's Sign By-law)
- Certificate of general liability insurance (the application does not state a minimum amount; contact Licensing to confirm the current minimum)
- $50 non-refundable application processing fee, plus the license fee per the Fees and Charges By-law
- If applying as a partnership or corporation: copy of partnership or incorporating documents
The Town reviews the complete application and may require further documentation within 30 days of request. For partnership and corporation applicants, expect additional review steps. Submit via licensing@newmarket.ca or call 905-953-5300 ext. 2221 with questions.
MAT Tax: 4% Effective January 1, 2025
Newmarket's Municipal Accommodation Tax was enacted under By-law 2024-68 and applies at a rate of 4% on short-term rentals effective January 1, 2025. The rate applies to the room charge (not cleaning or other fees). Most STR platforms including Airbnb and VRBO collect and remit MAT automatically where the Town has a platform agreement.
Verify your platform's collection status before assuming MAT is handled for you. If a platform is not remitting on your behalf, the obligation falls to the operator. Contact Newmarket Licensing for current remittance instructions.
Enforcement and Fines
Section 9 of the bylaw establishes two enforcement tracks:
- Administrative penalties through the Town's Administrative Monetary Penalty System (AMPS) By-law 2019-62
- Provincial Offences Act charges in the Ontario Court of Justice, with fines per the POA's standard maximums
The bylaw also establishes a demerit point system in Schedule A. Every STR licence starts with 15 points. Common infractions and points lost:
- More than the permitted number of bedrooms: 5 points
- More than the permitted number of guests: 5 points
- Failure to respond to complaint by the specified time: 5 points
- Operating while licence is suspended or revoked: 7 points
- Building Code Act contravention: 7 points
- Fire Code contravention: 15 points
- Noise By-law contravention: 5 points
Lose 15 or more points in a 12-month period and the Manager may suspend, revoke, or impose additional conditions on the licence. A single Fire Code contravention can lose the full 15 in one shot.
How to Host Legally in Newmarket
- Confirm a Permanent Resident lives onsite. Either you, a co-owner, or a tenant must normally reside on the lot and be physically in town the entire time guests are booked. Per §8.2(8), you need to prove this at application time.
- Measure your parking. Confirm you have enough off-street spaces for 1 per bedroom plus 1 for the Permanent Resident before investing in renovations.
- Get STR-specific insurance. Your homeowner policy almost never covers STRs. Get a certificate of general liability insurance from a broker who understands STR licensing and confirm the current minimum with Newmarket Licensing.
- Prepare your floor plan sketch. Identify the location and number of bedrooms used for STR.
- Plan your sign. Per §8.2(12), upon approval you must post a sign identifying the premises as a licensed STR, in conformity with the Town's Sign By-law. Sketch it as part of the application.
- Arrange the 2-hour response. Give every guest and the Licensing Officer the phone number of the Permanent Resident or onsite contact who will respond to concerns within 2 hours, per §8.2(9) and §8.2(10).
- Pay the $50 application processing fee plus the license fee.
- Submit the full application package via licensing@newmarket.ca or call 905-953-5300 ext. 2221.
- Display your license number on every listing on every platform, immediately upon approval, per §8.2(7).
- Only advertise on licensed STR Company platforms per §8.2(14). Airbnb and similar platforms must themselves hold a Short Term Rental Company licence with the Town under §8.3.
Condo Corporations Override Town Rules
Newmarket's license lets you operate legally under Town bylaw, but your condo corporation can still prohibit STRs in their declaration or rules. Many Newmarket condo buildings along Yonge Street and near Upper Canada Mall explicitly ban STRs in their governing documents. Check your status certificate, declaration, and rules before applying to the Town.
Frequently Asked Questions
Do I need a license to Airbnb in Newmarket, Ontario?
Yes. Business Licence By-law 2020-31 requires every short-term rental operator to hold a valid Short Term Rental Operator licence. The bylaw defines a short-term rental as a dwelling unit used for any rental period that is less than 28 days. Operating without a licence exposes you to AMPS penalties and Provincial Offences Act fines, plus demerit points that can lead to licence suspension or revocation.
Can I Airbnb an investment property in Newmarket?
Only if a Permanent Resident lives onsite. Section 8.2(9) requires a Permanent Resident to be present and available within the Town at all times while guests are staying. If you don't live on the property yourself, you can name a tenant or co-occupant as the Permanent Resident and provide a tenancy agreement. A property where no one permanently resides cannot be operated as a Newmarket STR. Mid-term rentals (28+ days) fall outside the STR bylaw and are the legal option for hands-off investment properties.
Do I have to be physically in town when guests are staying?
Yes. Section 8.2(9) is explicit: the Permanent Resident must be present and available within the Town at all times while guests are on the premises. Unlike Toronto, where principal residence is a continuity-of-occupancy test that tolerates vacations and business trips, Newmarket requires actual in-town presence. You cannot accept a booking and then leave town for the duration.
How many STRs are allowed per property in Newmarket?
One, per §8.2(1). And §8.2(2) restricts the STR to a single dwelling unit on the lot. Multi-unit properties cannot run separate STRs out of each unit.
What is the maximum occupancy for a Newmarket STR?
Per §8.2(6), the operator cannot make more than 3 bedrooms available for STR use, and cannot permit more than 6 overnight guests at one time. This cap applies regardless of property size.
How much parking do I need for a Newmarket STR?
Per §8.2(3), one off-street parking space per bedroom in use by the business, PLUS one additional off-street space for the Permanent Resident. If you rent the maximum 3 bedrooms, you need 4 off-street parking spaces total. This requirement disqualifies most condos and properties with tandem-only driveways.
Does Newmarket charge a Municipal Accommodation Tax?
Yes. By-law 2024-68 imposes a 4% Municipal Accommodation Tax on short-term rentals, effective January 1, 2025. Airbnb and VRBO collect and remit MAT automatically where the Town has a platform agreement. Confirm your platform's collection status, since the obligation falls to the operator if the platform is not remitting.
What documents do I need to apply for a Newmarket STR license?
The Town's Short Term Rental Operator Application Form requires: proof of Canadian citizenship, landed immigrant status, or work permit; proof you are at least 18; proof of a Permanent Resident onsite; a floor plan sketch showing bedrooms used for STR; a sketch of the proposed sign; a Certificate of general liability insurance; and a $50 non-refundable application processing fee plus the license fee. Contact licensing@newmarket.ca or 905-953-5300 ext. 2221 to confirm current insurance minimums and license fees.
Does Newmarket require a local contact person for STRs?
Yes. Per §8.2(9), the Permanent Resident must respond to concerns from guests, neighbours, or the Licensing Officer within 2 hours. Per §8.2(10), the operator must provide the phone number of this person to every guest and to the Licensing Officer.
What are the penalties for operating without a Newmarket STR license?
Section 9 establishes two tracks: administrative penalties under the Town's AMPS By-law 2019-62, and Provincial Offences Act charges with fines per POA maximums. Schedule A also establishes a demerit point system: STR licences start with 15 points, and serious infractions (Fire Code contraventions) can wipe out all 15 in a single incident, triggering suspension or revocation.
Can I advertise my STR on any platform in Newmarket?
Only on platforms that themselves hold a Short Term Rental Company licence with the Town, per §8.2(14) and §8.3. Operators must also post or display the business licence number on any marketing, advertising, or promotions, per §8.2(7). Advertising an STR without a valid licence is itself a bylaw offence.
Thinking of hosting in Newmarket?
Between the principal residence rule, the parking math, and the 30-minute local contact requirement, Newmarket is one of the trickier GTA markets to operate in. Nurture handles the license application, insurance, ESA inspection, and ongoing compliance so you can focus on hosting.
Get a Free Property AssessmentThis summary is for informational purposes only and reflects Business Licence By-law 2020-31 and MAT By-law 2024-68 as of 2026. Newmarket can amend its bylaws and fees at any time. Always verify current rules and fees at newmarket.ca business licensing or by contacting Licensing at 905-953-5300 ext. 2221 or licensing@newmarket.ca. HST (13%) and federal tax rules (including the 2024 rule denying deductions on non-compliant STRs) also apply.