Wasaga Beach Short-Term Rental Rules 2026: Licences, Zoning and the 4% Tax
If you're looking at a Wasaga Beach property this winter with a plan to rent it out next summer, the rules changed in 2026. Wasaga Beach short-term rental rules now run under a new stand-alone licensing by-law, a demerit point system, and a 4% Municipal Accommodation Tax. The next licence renewal date is April 1, 2027, so the time to check a property is before you write the offer, not after you close.
I'm Darren Cabral, REALTOR® with Cabral Real Estate at CV Real Estate, Brokerage. Short-term rental income is one of the first numbers buyers plug into a Wasaga deal, so here's what the Town's rules actually say and what I'd check first.
The short version
New by-law: Council passed By-law 2026-08 on February 12, 2026, in force March 1, 2026 (Town of Wasaga Beach). By-law 2026-17 added the licensing requirements and demerit schedules on February 26, 2026 (By-law 2026-17).
What counts: renting a dwelling, or part of one, for 30 consecutive days or less. That includes bed and breakfasts, motels, rental cabins and rental cottages, but not hotels.
Zoning still decides where: the new by-law doesn't expand where short-term rentals are allowed (Engage Wasaga).
Licences don't transfer: a licence is void on a change of ownership, so a buyer starts a new application.
New costs: $5 million in liability insurance, a Neighbourhood Partnership Plan, and a 4% Municipal Accommodation Tax collected from guests since April 1, 2026.
Wasaga Beach short-term rental rules: where rentals are allowed
This is the part that kills the most deals. The Town says the licensing by-law "does not change where short-term accommodations are permitted" and that land use is still governed by the Zoning By-law. According to the Town's Short-Term Accommodations Review page, short-term accommodations are permitted in the DC1, DC2, DG1, DG2, B1 and B2 zones. Bed and breakfasts are permitted in the R1, R2, RE, RU, DC2, DG2 and B2 zones, and a licensed bed and breakfast has to be the operator's principal residence.
As Simcoe.com reported in February, renting out a home in a residential neighbourhood short-term without the right zoning is still illegal. Staff floated a possible pilot for residential areas later in 2026, but I couldn't find a council decision on it as of early November 2026. Don't buy on the hope that it happens.
The Town's new Official Plan staff report (November 2025) also points to short-term accommodation permissions in strategic growth areas under a new zoning by-law. Until that is in force, today's zoning is what counts.
What a Wasaga Beach short-term rental licence requires
Here's what the by-law, its schedules and the Town's licensing page ask operators to do:
Liability insurance of at least $5 million that covers short-term rental use.
A Neighbourhood Partnership Plan: a site plan, a garbage management plan, a parking plan and a noise and nuisance strategy.
Inspections before a new licence is issued: building compliance, zoning compliance, arrears, fire safety and property standards. Renewals need the arrears, fire and property standards inspections.
A responsible person who answers the Town within 30 minutes and can be on site within one hour if asked.
Paperwork every stay: a signed Renters Code of Conduct and a guest register, both kept for two years.
The licence number in every ad and listing. Marketing an unlicensed rental is itself a breach.
A deadline: 60 calendar days from a complete application to pass inspections, or it lapses.
Fees on the Town's page are $224 for a new licence for 1 to 4 units and $196 to renew, rising to $560 and $532 for 5 to 10 units. Every licence expires on April 1, and a late renewal adds 30% of the renewal fee.
Demerit points and fines
Schedule B sets demerit points for each breach, and points stay on the licence for a year. At 7 points the licence can be suspended, and at 14 it can be revoked. Operating without a licence is 4 points for a first offence and 7 for a second. Simcoe.com reported the administrative penalty for an illegal short-term rental is $1,000 for a first offence, $2,000 for a second and $3,000 for a third, applied for every day it operates. The Town also uses software to match online listings against its licence list.
The 4% Municipal Accommodation Tax
Council passed By-law 2025-63 setting a 4% Municipal Accommodation Tax, effective April 1, 2026 (Town notice). Operators collect it from guests on stays of 30 days or less and remit it to the Town. The Town's MAT FAQ says it's charged on the room price before HST and not on separately itemized items like parking. Build it into your pricing.
The federal tax angle
For tax years after 2023, the Canada Revenue Agency denies deductions for expenses tied to a non-compliant short-term rental: one that isn't permitted at that location or isn't properly licensed. Ask your accountant how this applies to you.
Buying a Wasaga Beach short-term rental: my checklist
Confirm the zoning of the exact lot with the Town's planning department. A neighbour's licence doesn't tell you anything about yours.
Ask for the seller's licence number and history. It won't transfer, but it shows the property has passed inspections before.
Ask about demerit points. A confirmed revocation blocks a new licence at that property for two years.
Plan your timeline. No bookings until your own licence is issued. A spring closing leaves little room before summer.
Ask about future bookings. Your lawyer should deal with deposits taken for stays after closing.
Underwrite it as a long-term rental first. If the numbers only work with nightly rents, you're betting on rules you don't control.
Get an insurance quote early. The $5 million coverage has to be in place first.
If you'd rather buy for year-round living or a long-term rental, my investor guide shows how I run the numbers, and my Top Picks Under $700K report is a good starting list for Simcoe County buyers.
Selling a licensed property
Have your licence, inspection reports, insurance and booking records organized before you list. Buyers will ask, and a clean file builds confidence even though the licence doesn't transfer. My AI home valuation gives you a starting number, and my five seller tips cover the basics of getting ready.
What else is changing in Wasaga Beach
The Town's October 23, 2026 Beach Drive update says the road is being raised about 1.5 metres to reduce flooding, with about $10.9 million in provincial funding, and the Town expects more hotel, mixed-use and housing investment around Beach Area 1. Still, buy on today's rules and today's sales. For neighbourhoods, schools and commuting, see my Wasaga Beach Real Estate Guide.
FAQ
Do I need a licence to run a short-term rental in Wasaga Beach?
Yes. Renting a dwelling or part of one for 30 consecutive days or less needs a Town licence under By-law 2026-08, and every ad has to show the licence number.
Can I Airbnb any house in Wasaga Beach?
No. Zoning decides where short-term rentals are allowed, and the Town lists them in the DC1, DC2, DG1, DG2, B1 and B2 zones. Confirm the zoning of the exact property with the Town before you buy.
Does a short-term rental licence transfer when I buy the property?
No. A licence is void on a change of ownership, so a buyer applies for a new one and passes inspections before taking bookings.
How much is a short-term rental licence in Wasaga Beach?
For 1 to 4 units, $224 for a new application and $196 to renew. Licences expire every April 1.
Do Wasaga Beach short-term rentals charge the Municipal Accommodation Tax?
Yes. Since April 1, 2026, stays of 30 days or less carry a 4% Municipal Accommodation Tax on the room rate, calculated before HST.
Next steps
Wasaga Beach Real Estate Guide: areas, the waterfront, schools and buying tips
Investor Guide: how I look at rental and multi-unit deals in Simcoe County
Top Picks Under $700K: my current buyer report for Simcoe County
AI Home Valuation: a quick estimate of what your property could sell for
Looking at a Wasaga Beach property with rental plans? Call or text me at 647-371-5335 before you write the offer, or email darren@cabralrealestate.ca. CV Real Estate, Brokerage office: 705-704-1188.
General information only, not legal, tax or investment advice. Sources: Town of Wasaga Beach (By-laws 2026-08 and 2026-17, its short-term accommodations and MAT pages, Engage Wasaga), Simcoe.com (February 19, 2026) and the Canada Revenue Agency, as of November 2026. Rules and fees change, so confirm zoning and licensing for any property with the Town, your lawyer and your accountant.
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