Thornhill is the only community in the GTA that is legally split between two different cities with two completely different Airbnb bylaws. Yonge Street is the dividing line. West of Yonge, you are in Vaughan and STRs are licensed and regulated under By-Law 158-2019. East of Yonge, you are in Markham and STRs are not permitted as of right under Comprehensive Zoning By-law 2024-19.
Before you list on Airbnb or buy a Thornhill property for rental use, you need to know exactly which side of Yonge you are on. Get it wrong and you could be fined on the Markham side or running an unlicensed STR on the Vaughan side. This guide walks through both sets of rules, where the line runs, and the mid-term rental workaround that applies on both sides.
Thornhill Is Split Between Two Cities
Thornhill is one of the oldest communities in York Region, dating to the 1790s. It grew up around the Yonge Street corridor, which has been the eastern boundary of what is now Vaughan and the western boundary of what is now Markham since regional restructuring in 1971. The community kept its identity, signage, and postal conventions. The municipal boundaries never merged.
What this means for you as a host:
- Your STR rules are determined by which city owns your parcel, not by your mailing address or what Google Maps says
- Two completely different regulatory frameworks apply depending on address
- The same street can have Vaughan houses on one side and Markham houses on the other
- Enforcement is handled by whichever city your property is in
Which Side of Yonge Are You On?
The rough rule: Yonge Street is the boundary. Anything west of Yonge between Steeles Avenue and Highway 407 is in Vaughan. Anything east of Yonge in the same corridor is in Markham.
Vaughan-Side Thornhill Neighbourhoods
- Brownridge (between Bathurst and Yonge, north of Centre Street)
- Crestwood-Springfarm-Yorkhill (south of Centre, west of Yonge)
- Beverley Glen (Bathurst and Centre area)
- Thornhill Woods (north of Highway 7, west of Dufferin)
- Uplands (west side of Yonge, around Highway 7)
Markham-Side Thornhill Neighbourhoods
- Thornlea (east of Bayview, north of Steeles)
- German Mills (Don Mills Road and John Street area)
- Royal Orchard (north of Highway 7, east of Yonge)
- Grandview (around Bayview and John)
- Aileen-Willowbrook (between Bayview and Leslie)
Vaughan Side Rules (West of Yonge)
If your Thornhill property is in Vaughan, you follow Vaughan By-Law 158-2019 (most recently amended by By-law 029-2025 in February 2025). The headline rules:
Vaughan-Side Thornhill at a Glance
License required 路 Principal residence only 路 No annual night limit 路 4% MAT 路 Individual persons only (no corporations) 路 Vulnerable Sector Check required 路 Annual renewal
What Counts as a Short-Term Rental
"Short-Term Rental means a Dwelling Unit or part of a Dwelling Unit used to provide temporary accommodation for a Rental Period of not more than 29 consecutive days and shall not include a hotel, motel or Bed-and-Breakfast Establishment." Vaughan By-Law 158-2019, Section 3.0(4)(cc)
Principal Residence Requirement
Your Thornhill property must be your ordinary place of residence to qualify. Investment properties do not qualify. If you live in Thornhill and want to Airbnb your own home (either while you travel or by renting rooms), you can apply. If you bought a Thornhill condo purely to Airbnb, you cannot legally operate under STR rules.
No Annual Night Cap
This is the big win for Vaughan-side Thornhill hosts. Unlike Toronto's 180-night cap or Mississauga's 180-day cap, Vaughan has no annual night limit. You can rent your Thornhill principal residence 365 days a year if the demand is there.
License and Fees
Application fees are set in Vaughan's Fees and Charges By-law 171-2013 and are updated periodically. The license is annual and must be renewed each year. Late renewals face 15-30% penalties, and licenses more than 90 days late are cancelled with no reapplication allowed for 2 years.
Background Check
Every applicant needs a Vulnerable Sector Check from an Ontario police service dated within 90 days of the application. Thornhill hosts typically go through York Regional Police. These take 2-4 weeks.
Corporations Not Allowed
Only individual persons can hold a Vaughan STR license. Corporations, LLCs, partnerships, and holding companies are excluded. If your Thornhill property is held in a corporation for tax reasons, the STR license must be in the individual owner's name, and the individual must also be an occupant.
Multi-Unit Buildings
If your Thornhill STR is in a condo or apartment, you need a letter from the property owner or condo board confirming STRs are permitted. Many newer Thornhill condos near Yonge and Steeles or Highway 7 have explicit STR bans. Check your condo declaration before applying.
Markham Side Rules (East of Yonge)
If your Thornhill property is in Markham, the rules are dramatically different.
STRs Are Not Permitted As Of Right in Markham
Markham's Comprehensive Zoning By-law 2024-19 (approved by the Ontario Land Tribunal September 19, 2024, deemed in force January 31, 2024) does not list short-term rental as a permitted use in residential zones. That means you cannot run an Airbnb under 28 days in a Markham-side Thornhill home unless you go through a site-specific zoning bylaw amendment or minor variance.
What Markham Considers a Short-Term Rental
Markham uses 28 consecutive days as the threshold. Anything under 28 days falls within STR restrictions. Anything 28+ days is a standard rental subject to the Residential Tenancies Act and other provincial legislation, not Markham's STR framework.
The Zoning Amendment Pathway
If you want to legally operate an STR on a Markham-side Thornhill property, your options are:
- Site-specific zoning bylaw amendment: formal application to amend the zoning for your parcel. Requires planning justification, public notice, committee hearings, and council approval. Timeline: 6-18 months. Cost: several thousand dollars in application fees plus planning consultant fees. Outcome: uncertain.
- Minor variance: application to the Committee of Adjustment for a variance from the zoning rules. Typically for smaller deviations. Timeline: 3-6 months.
Neither pathway is guaranteed. Most Markham-side Thornhill operators either accept the restriction and pivot to mid-term rentals, or ignore the rules and face enforcement action.
Enforcement on the Markham Side
Markham's Bylaw Enforcement Services actively monitors Airbnb, VRBO, and Booking.com for Markham listings under 28 days. Common enforcement actions:
- Warning letter and cease-and-desist order
- Daily fines for continued operation
- Coordination with booking platforms to remove listings
- Applications to the Ontario Land Tribunal for injunctions
Side-by-Side Comparison
Quick reference for Thornhill hosts trying to figure out which side they want to invest in or build a business around:
Mid-Term Rentals: The Universal Thornhill Strategy
If you own a Thornhill property and want predictable income without navigating two sets of STR bylaws, mid-term rentals (30+ consecutive nights) are the cleanest path. Mid-term rentals are:
- Exempt from Vaughan's STR bylaw (which only applies to stays of 29 days or less)
- Exempt from Markham's STR zoning restriction (which targets rentals under 28 days)
- Subject to standard provincial landlord-tenant rules under the Residential Tenancies Act for stays 30+ days, though most corporate mid-term operators use furnished rental agreements that limit tenant rights through specific contract structures
- Strong fit for Thornhill's corporate and medical tenant base
Why Mid-Term Works in Thornhill
Thornhill's tenant pipeline for mid-term rentals is one of the best in the GTA:
- IBM Canada HQ (Markham): relocating tech staff and international hires on 3-6 month engagements
- Honda Canada HQ (Markham): automotive engineers, Japanese expats on 6-12 month assignments
- AMD, Motorola, Broadcom (Markham tech corridor): contract engineers and short-term project teams
- MacKenzie Health (Vaughan): travel nurses, locum physicians, visiting specialists
- KPMG Vaughan Metropolitan Centre: consulting teams on multi-month client projects
- Vaughan and Markham school boards: teachers on temporary placements
- Visiting academics: University of Toronto (Scarborough) and York University faculty for sabbaticals
Typical Thornhill mid-term rates: 3-bedroom detached fetches $4,500 to $6,500/month fully furnished. 2-bedroom condo near Yonge runs $3,200 to $4,500/month. One tenant per month instead of 10-15 short-term bookings means drastically less turnover, cleaning, and messaging labour.
Why Thornhill Works for Hosting
Setting aside the regulatory split, Thornhill has structural advantages for both short-term and mid-term rental hosts:
Corporate Anchor Tenants
Thornhill sits inside the Vaughan-Markham tech and corporate corridor. Within a 15-minute radius: IBM, Honda, Motorola, AMD, Allstate, KPMG, Siemens, TD Bank corporate offices, and dozens of mid-sized professional services firms. This drives sustained weekday demand for both short-term business travel and multi-month relocations.
Healthcare Hub
MacKenzie Health (Vaughan) and Markham Stouffville Hospital both bring travel nurses, locum doctors, and visiting specialists on 2-week to 6-month contracts. This is a proven mid-term niche with predictable demand.
Family-Oriented Tourism
Thornhill is one of the GTA's most diverse communities, with significant Jewish, Persian, Chinese, Korean, and Italian populations. Extended family visits for weddings, bar mitzvahs, Nowruz, Lunar New Year, and Jewish high holidays drive recurring seasonal demand. A well-located Thornhill home with 3+ bedrooms and strong walkable-amenities near Yonge sees consistent weekend bookings year-round.
Transit and Highway Access
Thornhill has Yonge Street access (future Yonge North Subway Extension), Highway 7 (BRT), Highway 407, and Highway 404/DVP via Markham. Pearson is 25 minutes, downtown Toronto 30-40 minutes depending on traffic. This triangle of access makes it viable for both business travelers and tourist stays.
Upper-Tier Housing Stock
Thornhill has more large detached homes and executive rentals than most of the Vaughan or Markham market. Bigger properties fetch higher nightly rates and attract family groups willing to pay premium for space. This also matters for mid-term: executive relocations want 3+ bedrooms and functional home offices, exactly Thornhill's profile.
Compliance Checklist
If You Are on the Vaughan Side
- Confirm your address is in Vaughan (not just "Thornhill")
- Confirm the property is your principal residence
- Check condo declaration if applicable
- Get Vulnerable Sector Check from York Regional Police
- Register for Vaughan MAT
- Apply for STR license at vaughan.ca
- Pay fee (non-refundable)
- Await approval and property inspection if required
- Post license in a conspicuous place near main entrance
- Track nights rented, nightly rates, and MAT collected for 3 years
- Renew annually before anniversary date
If You Are on the Markham Side
- Confirm your address is in Markham (not just "Thornhill")
- Do not list as a short-term rental under 28 days
- If you want to pursue the exception pathway, contact Markham Planning Services for site-specific zoning amendment or minor variance
- Consider mid-term rentals (30+ days) as the compliant alternative
- Review condo rules if applicable (condos often prohibit both STR and mid-term)
Official Resources
Vaughan Side (West of Yonge)
- City of Vaughan STR Information
- Apply for a Vaughan STR License
- Vaughan By-Law 158-2019 (Full Text PDF)
Markham Side (East of Yonge)
Frequently Asked Questions
Are Thornhill Airbnb rules different from Vaughan or Markham?
Thornhill is a community split between the City of Vaughan (west of Yonge Street) and the City of Markham (east of Yonge Street). There is no separate Thornhill bylaw. Whichever side of Yonge your property sits on determines your rules. Vaughan side: licensed STRs allowed in principal residence under By-Law 158-2019. Markham side: STRs not permitted as of right under Comprehensive Zoning By-law 2024-19.
How do I know if my Thornhill property is in Vaughan or Markham?
Look up your municipal address on the York Region GIS map or call your property tax office. As a rough guide: properties west of Yonge Street (including neighbourhoods like Brownridge, Crestwood, and Beverley Glen) are in Vaughan. Properties east of Yonge Street (including Thornlea, German Mills, Royal Orchard, and Uplands) are in Markham. The dividing line follows Yonge all the way from Steeles in the south to Highway 407 in the north.
Can I Airbnb my condo in Thornhill?
It depends. If your condo is on the Vaughan side and your condo corporation permits STRs, you can apply for a Vaughan license as long as the unit is your principal residence. If your condo is on the Markham side, STRs are not permitted as of right under the current zoning, so you cannot legally operate a short-term rental. Many newer Thornhill condo towers near Yonge and Steeles or Highway 7 have explicit STR bans in their declarations regardless of city rules.
Can I Airbnb an investment property in Thornhill?
Not under short-term rental rules. The Vaughan side requires principal residence (no investment properties). The Markham side does not permit STRs at all. For investment properties on either side, the legal alternative is mid-term rentals of 30+ consecutive days. Mid-term falls outside both Vaughan's STR bylaw (29-day threshold) and Markham's STR restrictions (STRs are under 28 days in Markham's framework). Thornhill has strong mid-term demand from relocating corporate staff, Pearson airport-area travelers, and visiting family.
Is there a night limit for Thornhill Airbnbs?
Vaughan side: no annual night limit. You can rent your principal residence 365 days a year. Markham side: the question is moot because STRs are not permitted as of right anyway. The Vaughan no-cap policy is a genuine advantage over Toronto (180 nights) and Mississauga (180 days).
Does Thornhill have a Municipal Accommodation Tax?
Yes on the Vaughan side. Vaughan applies a 4% MAT on STR bookings. Markham does not have a MAT because it does not license STRs. Airbnb typically collects and remits Vaughan's MAT automatically on platform bookings. For direct bookings you must register and remit yourself.
What happens if I Airbnb on the Markham side of Thornhill?
You are operating a land use not permitted under Markham's Comprehensive Zoning By-law 2024-19. Markham's enforcement arm can issue cease-and-desist orders and daily fines. The only legal path in Markham is to apply for a site-specific zoning bylaw amendment or minor variance, both of which are lengthy planning processes with uncertain outcomes. In practice, most Markham-side Thornhill hosts shift to mid-term rentals or face enforcement.
Why is Thornhill split between two cities?
Yonge Street has been the regional dividing line between York's eastern and western municipalities since the 19th century. Both Vaughan and Markham annexed portions of the historic Village of Thornhill in the 1971 regional restructuring. The community name and identity survived, but the municipal boundaries did not merge. It is the most famous two-city community in the GTA.
Are there mid-term rental opportunities in Thornhill?
Yes, and they are especially strong in Thornhill because of the corporate anchor tenants in both Vaughan Metropolitan Centre and Markham's tech corridor (IBM, Honda HQ, Motorola, AMD). Mid-term demand sources: corporate relocations, travel nurses at MacKenzie Health and Scarborough Health Network, visiting family for longer stays, construction crews on York Region projects, and students at York University's Markham campus when it opens. Typical mid-term rates run 60-80% of equivalent STR nightly rates with far less turnover.
Can a corporation own a Thornhill STR license?
On the Vaughan side, no. Vaughan By-Law 158-2019 restricts STR licenses to individual persons only. Corporations, holding companies, LLCs, and partnerships cannot hold a Vaughan STR license. On the Markham side, the question does not apply because STRs are not permitted at all. This trips up many Thornhill investors who hold properties in holding companies for tax purposes.
This article is for informational purposes only and does not constitute legal advice. Bylaw and regulation details change frequently. Always verify current rules directly with the City of Vaughan or City of Markham before making hosting decisions.
Not Sure Which Side of Yonge Your Thornhill Property Is On?
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