Short-term rentals in Canada: the federal tax rule and British Columbia's registry
Since January 1, 2024, a rental of less than 90 consecutive days that breaks its province's or city's rules can't deduct its expenses for the days it was out of compliance. In British Columbia, every online listing has had to show a provincial registration number since May 1, 2025. Upbridge's AI operations assistant, Cleo, works over WhatsApp with vacation rental operators and cleaning companies and organizes the cleanings and the inventory for each place.
The rules we've checked
This page covers the federal tax rule and British Columbia. Ontario, Quebec and the other provinces have their own rules, and this page doesn't cover them. Every row was checked on October 24, 2026.
| Topic | What it says | Status | Source |
|---|---|---|---|
| Federal income tax | Section 67.7 of the Income Tax Act calls a residential property rented or offered for less than 90 consecutive days a short-term rental. If it sits where short-term rentals are banned, or it lacks a registration, licence or permit the province or city requires, the expenses for the non-compliant days can't be deducted. | In force | Mondaq |
| BC registration number | Anyone with a short-term rental listed on a platform in BC has to register with the province and show the provincial number on every online listing, from May 1, 2025. Listings without one started coming down on June 1, 2025. | In force | BC Gov News |
| BC principal residence rule | In many BC communities a short-term rental is limited to the host's principal residence. The rule doesn't apply everywhere, and the province keeps a map of where it does. | In force | Gov. of BC |
Cottage Life explained it with an example on March 23, 2025: an owner who got a required licence on June 1, 2024 could claim expenses only from that day to the end of the year. Mondaq added on January 15, 2026 that the denial is prorated over the days the property was rented short-term.
This is not legal or tax advice, and Upbridge does not file anything for you: no registrations and no tax returns.
What it means between two guests
Because the tax rule counts days, the date a permit or a BC number starts is worth writing down next to the calendar, and so is any day a listing goes up without one. For a cleaning company the effect is quieter: a house that loses its listing in June stops showing up on the schedule, and someone has to notice before the team drives there.
Where Upbridge fits
We don't register anything or file taxes. We take the turnovers: every checkout on your calendar becomes a cleaning with a room-by-room photo checklist, and we build the guest guide for each place, where the registration number and the house rules can sit next to the door code.
These places have their own page:
Questions about short-term rentals in Canada
What counts as a short-term rental for Canadian income tax?
A residential property rented or offered for rent for less than 90 consecutive days, under section 67.7 of the Income Tax Act. The rule on denied expenses applies from January 1, 2024.
Does a BC listing need a registration number?
Yes. Since May 1, 2025, every short-term rental listed online in British Columbia has to show its provincial registration number, and listings without one were taken down from June 1, 2025.
Can I rent out a cottage in BC that I don't live in?
It depends on where it is. In many BC communities short-term rentals are limited to the host's principal residence, but the rule doesn't apply everywhere, and the province publishes a map of the areas it covers.
Sources
Checked on October 24, 2026
- Mondaq, “Comply Or Lose Your Tax Deductions: New Income Tax Act Rules Target Short-Term Rental Landlords”, January 15, 2026.
- Cottage Life, “Everything Canadian cottagers need to know about filing their 2024 tax return”, March 23, 2025.
- BC Gov News, “Short-term rental registry will deliver more homes, ensure hosts follow rules”, January 20, 2025.
- Government of British Columbia, “Short-term rentals”, undated.