Newmarket takes short-term rentals seriously. The Town requires a license, restricts STRs to your principal residence, caps guests at six, and enforces parking rules strict enough to disqualify most condos. Add the 2025 Municipal Accommodation Tax and you have one of the most regulated markets in York Region.
Every rule below comes from the Town of Newmarket's business licensing page.
Quick Summary
The Newmarket STR Bylaw
Newmarket's short-term rental regulatory framework was implemented to address community concerns about "party palaces" and unregulated tourist rentals in residential neighbourhoods. The bylaw applies to any dwelling unit offered for rent for 28 consecutive days or less. Rentals longer than 28 days fall outside the STR definition and are subject to different provincial rules under the Residential Tenancies Act.
The program is administered by Newmarket's Licensing division. Licenses are issued for one year and must be renewed annually. For current application fees and renewal costs, contact licensing@newmarket.ca or call 905-895-5193 ext. 2221. In 2026 the Town added the option to book an in-person appointment with a Licensing Officer for application support.
Principal Residence Rule
Newmarket's STR bylaw restricts short-term rentals to the operator's principal residence. Your principal residence is the property where you actually live, receive mail, and file your taxes. Investment properties, second homes, and family property you do not inhabit do not qualify.
If you own a non-principal-residence property in Newmarket, your legal options are:
- Long-term rental under the Residential Tenancies Act (typical 12-month lease)
- Mid-term rental of 28 consecutive days or more (exempt from the STR bylaw)
- Sell or hold if neither of the above 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
The operator must designate a local contact capable of responding to complaints or emergencies within 30 minutes of being notified. This is a tighter response time than most other GTA cities and makes a dedicated property manager (or yourself living nearby) essentially mandatory for remote owners.
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. Expected documents based on the Town's published requirements:
- Completed STR license application form
- Proof of principal residence (government ID plus utility bills showing the property address)
- Proof of ownership (deed) or written authorization from the owner
- Interior floor plans with room dimensions, smoke alarms, CO alarms, and fire extinguisher locations marked
- Parking plan showing space location and dimensions
- Proof of $2 million liability insurance explicitly covering STR use
- Electrical Safety Authority (ESA) inspection certificate dated within the past year
- Application fee (contact licensing@newmarket.ca for current amount)
After submission, the Town reviews the complete application within approximately 30 days. An inspection may follow depending on documentation.
MAT Tax (Implemented 2025)
Newmarket implemented a Municipal Accommodation Tax in 2025, following York Region neighbours and the broader trend across Ontario. MAT is collected on the guest's total (room charge) and remitted to the Town quarterly. Most STR platforms including Airbnb and VRBO collect and remit MAT automatically where agreements are in place.
Contact Newmarket Licensing for the current rate, remittance schedule, and any platform agreements that affect how MAT is collected on your listings.
Enforcement and Fines
Newmarket hired additional bylaw enforcement officers specifically to monitor short-term rental compliance. Enforcement tactics include:
- Proactive monitoring of Airbnb, VRBO, and Booking.com listings for Newmarket addresses
- Verification that displayed license numbers match valid, active licenses
- Complaint-based response (noise, parking, party reports trigger investigations)
- Platform cooperation requests for listing takedowns on unlicensed properties
Penalties run up to $100,000 per offense under the Provincial Offences Act. Operating without a license, exceeding 6 guests, or running multiple STRs on a single lot are all separate chargeable offenses that can stack.
How to Host Legally in Newmarket
- Verify principal residence eligibility. The property must be where you actually live. Second homes are ineligible.
- Measure your parking. Confirm you have enough off-street spaces for 1 per bedroom plus 1 for yourself before investing in renovations.
- Get STR-specific insurance. Your homeowner policy almost never covers STRs. Work with a broker who understands Newmarket's license requirement.
- Schedule an ESA inspection. The electrical certificate must be dated within 1 year of application submission.
- Prepare floor plans and parking diagrams. Owner-drawn is acceptable. Label rooms and mark smoke/CO alarms and fire extinguishers.
- Arrange a local contact. You or your property manager must be able to respond within 30 minutes to any complaint, 24/7.
- Submit the full application package via licensing@newmarket.ca or in person. Consider booking an appointment with a Licensing Officer.
- Display your license number on every listing on every platform, immediately upon approval.
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. The Town of Newmarket requires every short-term rental operator to hold a valid Short-Term Rental Operator License. The STR definition applies to any rental of a dwelling unit for 28 consecutive days or less. Operating without a license can trigger fines up to $100,000 per offense.
Can I Airbnb an investment property in Newmarket?
No. Newmarket's bylaw restricts short-term rentals to the operator's principal residence. Investment properties and secondary homes are not eligible for an STR license. If you own a non-principal residence in Newmarket and want rental income, mid-term rentals (28+ nights) are exempt from the STR bylaw and are the legal alternative.
How many STRs are allowed per property in Newmarket?
One. Newmarket's bylaw states that no more than one short-term rental is permitted on a single lot, and it must be operated within one dwelling unit. Multi-unit properties cannot run separate STRs out of each unit.
What is the maximum occupancy for a Newmarket STR?
Guests cannot occupy more than 3 bedrooms, and the property cannot host 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?
One off-street parking space per bedroom rented, PLUS one additional off-street space for the permanent resident of the property. If you rent 3 bedrooms, you need 4 off-street parking spaces total. This is one of the strictest parking requirements in the GTA and often disqualifies condos or properties with tandem-only driveways.
Does Newmarket charge a Municipal Accommodation Tax?
Yes. Newmarket implemented a Municipal Accommodation Tax (MAT) in 2025. The current rate and remittance requirements are set by the Town. Airbnb and VRBO typically collect and remit MAT on behalf of operators where agreements are in place. Contact Newmarket Licensing for current rates.
What documents do I need to apply for a Newmarket STR license?
Based on the Town's licensing requirements, operators need: completed application form, proof of principal residence, floor plans showing room dimensions and safety device locations, a parking plan, proof of $2 million liability insurance, and an Electrical Safety Authority (ESA) inspection certificate dated within 1 year. Contact licensing@newmarket.ca or 905-895-5193 ext. 2221 for the current complete document list.
Does Newmarket require a local contact person for STRs?
Yes. Operators must designate a local contact person capable of responding to any complaint or emergency within 30 minutes of being contacted. This is one of the fastest response requirements in Ontario.
What are the penalties for operating without a Newmarket STR license?
Fines can reach up to $100,000 per offense under the Provincial Offences Act. Newmarket has hired additional bylaw enforcement officers specifically to identify unlicensed STR listings on Airbnb, VRBO, and Booking.com. The Town also works with platforms to flag non-compliant listings for removal.
Can I advertise my STR on any platform in Newmarket?
Only on approved platforms. Newmarket's bylaw requires operators to market their business only on platforms approved by the Town and to post or display the business license number on every listing, advertisement, or promotional material. Advertising an STR without a valid license is itself an offense.
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. Newmarket's STR bylaw and MAT rates change periodically. Always verify current rules and fees at newmarket.ca business licensing or by contacting Licensing at 905-895-5193 ext. 2221 or licensing@newmarket.ca. HST (13%) and federal tax rules (including the 2024 rule denying deductions on non-compliant STRs) also apply.