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From The Homeowner's Guide by Zulma

Short-term rental licensing in Niagara: every municipality, one table

Last verified: July 21, 2026. Municipal bylaws change often, and several of these regimes are less than a year old. Confirm the current rules with your municipality before you apply or list.

This guide is for general information only. It is not legal advice. For advice on your specific property, speak to a lawyer or your municipal licensing office.

Twelve municipalities, twelve sets of rules. In Niagara, the same short-term rental can be fully legal in one town and prohibited in the next, with fees that range from a few hundred dollars to over a thousand, and penalties that reach five figures. No municipality publishes a comparison, so we compiled one from official bylaws and municipal pages. Here is where every Niagara municipality stands, in one table.

The rules at a glance

Where a cell says "Confirm with the municipality," the figure is not published clearly on official pages, and we will not guess. The link in each row goes to the official source.

MunicipalityLicence required?FeeKey restrictionPenalty for operating unlicensedOfficial page
Niagara-on-the-LakeYes, for all 5 licence classes$800 new, $600 renewal, annualNew licences paused for 4 of 5 classes since Dec 10, 2024Confirm with the municipality: notl.com/short-term-rentalsnotl.com/short-term-rentals
Niagara FallsYes (three streams: vacation rental unit, B&B, owner-occupied STR pilot)Confirm with the municipality: Schedule of Fees via the VRU pageVacation rental units allowed only in certain commercial zones; owner-occupied pilot capped at 100 licencesFines up to $50,000 first offence, up to $100,000 each subsequent; pilot-class administrative penalty $1,000 per dayniagarafalls.ca VRU page
St. CatharinesYes$534.05 application, licence valid 2 yearsMust be the operator's primary residence$1,000 administrative penalty, plus a demerit system that can suspend or revoke the licencestcatharines.ca STR licensing
Fort ErieYes$750 (1 to 2 bedrooms), $1,250 (3 bedrooms), annualDedicated STRs in commercial and mixed-use zones; owner-occupied STRs in residential zones (confirm exact zones with the Town)$1,500 administrative penalty first offence, $2,000 each subsequent, plus a 2 to 5 year ban on applyingforterie.ca operators page
WellandYesConfirm with the municipality: welland.ca STR pageSTRs are a secondary use in residential zones; max 3 guest bedrooms; only the property owner can applyConfirm with the municipality: welland.ca STR pagewelland.ca STR page
ThoroldNo dedicated STR bylaw found; a general Residential Rental Licensing program exists. Confirm whether it applies to your STRConfirm with the municipality: thorold.ca residential licensingUnclear whether the rental licensing program covers STRs; confirm before listingConfirm with the municipality: thorold.ca residential licensingthorold.ca residential licensing
LincolnYes (short-term accommodations and B&Bs)Confirm with the municipality: lincoln.ca/STAConfirm with the municipality: lincoln.ca/STAConfirm with the municipality: lincoln.ca/STAlincoln.ca/STA
GrimsbyNo licensing program; whole-home STRs are not permitted under current zoningNot applicableSTRs prohibited; B&Bs permitted for certain properties under zoning, no licence neededComplaint-based zoning enforcementletstalkgrimsby.ca STR page
PelhamYes (By-law 4257-2020)Confirm with the municipality: STA application formA responsible person must be able to attend the property within 1 hour; advertising without a licence is prohibitedConfirm with the municipality: STA application formPelham STA application
Port ColborneYes (in force Nov 1, 2025)$800 to $1,000 plus HST new, $480 to $600 plus HST renewal, by zone classOccupancy capped at 2 renters per licensed bedroom, max 10; no principal-residence rule identifiedConfirm with the municipality: portcolborne.ca STR pageportcolborne.ca STR page
WainfleetYes, whether advertised or not$1,024 per application or renewal (2026), plus fire review and inspection at $60 per hour, 2-hour minimum eachYou must have owned the property for at least 2 years before applying; B&Bs must be owner-occupiedAdministrative penalties of $5,000 to $10,000 first violation, $15,000 second, $20,000 third and beyondwainfleet.ca/str
West LincolnNo STR licence appears in the township's licences and permits indexNot applicableZoning treatment of STRs not confirmed; confirm with the townshipConfirm with the municipality: westlincoln.ca licences indexwestlincoln.ca licences index

Worth knowing right now

Niagara-on-the-Lake has paused new licences for 4 of its 5 classes.

Since December 10, 2024, the Town is not issuing new licences for Cottage Rentals, Country Inns, Vacation Apartments, or Villas. Existing holders may renew, and the B&B class is not named in the pause. As of July 21, 2026, the Town's STR page still shows the pause in effect. If you were planning to enter the NOTL market, check the current status first. [2]

Niagara Falls is running an owner-occupied pilot, and it ends soon.

The City's Owner Occupied Short-Term Rental pilot is a 14-month program capped at 100 licences, ending at the end of September 2026. It allows owner-occupied rentals in several residential zones, with the owner present during stays, a maximum of 3 bedrooms and 6 guests, and a minimum 150 m separation from another pilot rental. What happens after September 2026 has not been announced on the pages we reviewed. [7]

Fort Erie removed its licence cap.

As of January 1, 2025, the Town no longer limits the number of STR licences. The current regime is By-law 102-2024, which took effect the same day. [13]

Grimsby decided not to license, because STRs are not permitted at all.

On October 21, 2024, Council ratified report BYL-24-06 confirming the Town is not moving forward with an STR bylaw or licensing program. Under current zoning, whole-home STRs are not permitted in Grimsby. [22] [23]

Port Colborne's regime is brand new.

By-law 7388/79/25 was approved September 23, 2025 and took effect November 1, 2025. Licences must be displayed, and the licence number must appear in every listing and advertisement. Existing operators had staged deadlines through early 2026. [27] [28]

Wainfleet requires 2 years of ownership before you can apply.

Under By-law 026-2023, passed July 18, 2023, you must have owned the property for at least 2 years as of your application date. Wainfleet also carries the region's steepest published penalties for unlicensed operation, starting at $5,000 to $10,000 for a first violation. [30] [31]

Municipal Accommodation Tax: who charges it

The Municipal Accommodation Tax (MAT) is charged municipality by municipality; there is no single region-wide rate. Where a municipality has one, STR operators generally collect it from guests and remit it. Rates below are as published on official pages as of July 21, 2026.

MunicipalityMATNotes
Niagara-on-the-Lake4% since Jan 1, 2025STR operators (fewer than 5 rooms) have collected since Jan 1, 2024; remitted quarterly [3]
Niagara FallsReported as a flat 4% of room rate effective Apr 1, 2026Preceded by a flat nightly fee of $5 to $7 by star rating from May 1, 2025. Confirm the current rate with the City before budgeting [8]
St. Catharines4% since Jan 1, 20252% from 2023 through 2024; applies to stays of 30 days or less, including STRs, shown as a separate line item [11]
Lincoln4% since Jul 1, 2024Applies to stays of 29 nights or less, including short-term accommodations and B&Bs [20]
Port Colborne4% effective Feb 1, 2025Whether every licensed STR must currently collect it is not confirmed; a proposed expansion went to public feedback. Confirm with the City [29]
Fort Erie, Welland, Thorold, Pelham, Grimsby, Wainfleet, West LincolnNo MAT identified as of July 2026We did not find a MAT for these municipalities, but we have not exhaustively confirmed the absence. Confirm locally before pricing

Before you list: six steps in order

  1. 1

    Check zoning before anything else.

    Zoning decides whether your property can host an STR at all, before fees or forms enter the picture. In Grimsby, whole-home STRs are not permitted. In Niagara Falls, vacation rental units are allowed only in certain commercial zones. In Welland, an STR is a secondary use in residential zones. If the zoning does not work, no licence will fix it.

  2. 2

    Confirm which licence class you fall into.

    Most Niagara regimes define classes, and the rules differ by class. Niagara-on-the-Lake has five. Niagara Falls has three streams, each with its own zones and conditions. Wainfleet separates standard STRs from owner-occupied B&Bs. Applying under the wrong class costs time, and application fees are not always refundable: St. Catharines states its fee is not refunded if the application fails.

  3. 3

    Check eligibility rules before you spend money.

    Some rules cannot be worked around. Wainfleet requires 2 years of property ownership before you can apply. St. Catharines requires the rental to be the operator's primary residence. Niagara-on-the-Lake is not issuing new licences in 4 of its 5 classes. Confirm you are eligible before commissioning inspections or paying fees.

  4. 4

    Book required inspections early.

    Inspections are a common gate, and they take time. Niagara-on-the-Lake requires an ESA electrical certificate every 4 years plus fire and bylaw inspections, and states processing can take up to 10 weeks from a complete application. Port Colborne requires electrical, HVAC, septic, well-water, and (where applicable) chimney certifications. Wainfleet requires water, septic, and fire inspections on set timelines. Start these before your target listing date, not after.

  5. 5

    Budget the full cost: fee, inspections, insurance, and MAT.

    Published application fees in Niagara range from $534.05 (St. Catharines) to $1,250 (Fort Erie, 3 bedrooms), with Wainfleet at $1,024 plus per-hour fire review and inspection charges. Several municipalities also require proof of liability insurance: St. Catharines and Port Colborne each require at least $2 million in coverage. Where a MAT applies, build the 4% into your pricing.

  6. 6

    Diary your renewal date and keep your paperwork current.

    Most Niagara licences are annual, and several expire on December 31 regardless of when they were issued (Niagara-on-the-Lake, Fort Erie, Welland). St. Catharines issues 2-year licences. Missing a renewal can put you in the same position as never having been licensed, and several municipalities operate demerit systems where infractions accumulate toward suspension or revocation.

The rules, municipality by municipality

Niagara-on-the-Lake

Every short-term rental in NOTL needs a licence under By-law 2025-032, across five classes: Bed and Breakfast, Cottage Rental, Country Inn, Vacation Apartment, and Villa. Licences are non-transferable and expire December 31 each year; a new application is $800 and a renewal is $600. [1] An ESA electrical certificate is required every 4 years, fire and bylaw inspections apply to all new and renewal applicants, and processing can take up to 10 weeks. [1] Note the pause: since December 10, 2024 the Town is not issuing new licences in 4 of the 5 classes (B&B excepted). [2]The application form is on the Town's site. [4]

Niagara Falls

Niagara Falls licenses three streams under By-law 2021-57 as amended. Vacation rental units (owner not living on site) are permitted only in Tourist Commercial, General Commercial, and Central Business zones, are explicitly prohibited in residential zones, and are capped at 3 bedrooms. [5] B&Bs require the owner to live on site and be present during stays, with a maximum of 3 guest bedrooms and a building permit plus passed inspections before licensing. [6] The owner-occupied pilot (100 licences, ending September 2026) opens several residential zones to hosting with the owner present. [7]Penalties are the region's headline numbers: fines up to $50,000 for a first offence and up to $100,000 for each subsequent offence, and a $1,000 per day administrative penalty in the pilot class. [5] [6] [7]Fee amounts sit in the City's Schedule of Fees; confirm current amounts with the City. [5]

St. Catharines

St. Catharines has required STR licences since 2022. The rental must be the operator's primary residence, operating as a home-based business; the entire dwelling may be rented, with stays capped at 28 consecutive days. [9] [10] The application fee is $534.05, licences run 2 years, and the fee is not refunded if the application fails. [10] Operators need at least $2 million in general liability insurance and one parking space per bedroom. [9] [10] Operating without a licence draws a $1,000 administrative penalty, advertising without a valid licence number draws another $1,000, and a demerit system escalates from 3-month suspensions to permanent revocation. [10]Applications go through the City's online portal. [12]

Fort Erie

Fort Erie has licensed STRs since 2020; the current regime is By-law 102-2024, in effect January 1, 2025. [13] Fees are $750 for 1 to 2 bedrooms and $1,250 for 3 bedrooms, with licences expiring December 31 each year. [13] There is no longer a cap on the number of licences. [13] Dedicated STRs sit in commercial and mixed-use zones while owner-occupied STRs are allowed in residential zones where the owner lives full time; confirm the exact zone list with the Town before relying on it. [13] Fire and building inspections run annually for licence holders. Unlicensed operation carries a $1,500 administrative penalty plus a 2-year ban on applying, rising to $2,000 and up to a 5-year ban for repeat infractions. [13]

Welland

Welland's licensing regime has been live since 2022 under By-law 2021-179. [15] STRs are permitted as a secondary use in residential, agricultural, and institutional zones where residential uses are allowed, and as a principal use in certain commercial zones. [15] Only the property owner can apply, guest bedrooms are capped at 3, and licences expire December 31 each year. [15] Applications require an insurance certificate, site plan, floor plan, parking management plan, fire safety protocols, and an electrical safety inspection. [15]Fee amounts and penalty amounts are not published in a machine-readable form; confirm both with the City's bylaw office. [15]

Thorold

Thorold is the ambiguous case. We found no dedicated STR licensing bylaw. The city runs a general Residential Rental Licensing program under By-law 109-2017, with 2-year licences, but its page does not mention short-term rentals, and whether it applies to STRs is not stated. [17]Council discussed tightening STR rules in 2023, and we found no later decision. Do not read this as "no rules": confirm your obligations with the city's licensing division (RRL@thorold.ca) before listing. [17]

Lincoln

Lincoln approved licensing for short-term accommodations and B&Bs in September 2024 under By-law 2024-61, with registration open since November 1, 2024. [18] [19] A short-term accommodation covers all or part of a detached, semi-detached, or townhouse dwelling (or accessory structure) rented for up to 28 consecutive days. [19] Applications require a site plan, fire safety protocol, and septic and electrical safety declarations. [18] Fees, caps, residency rules, and penalties are not published on the pages we could verify; confirm them with the Town (accommodationlicensing@lincoln.ca). [18] The application form is online. [21]

Grimsby

Grimsby chose not to build a licensing program, and the reason matters: whole-home STRs are not permitted under the Town's current zoning at all. Council confirmed the decision on October 21, 2024. [22] [23] B&Bs are permitted for certain properties under the Zoning By-law and need no town licence or inspection. [22] Enforcement is complaint-based, handled by Municipal Law Enforcement Officers on issues like parking, noise, and safety. [22]

Pelham

Pelham licenses short-term accommodations under By-law 4257-2020. [24] Advertising an STA without a licence is prohibited, and a designated responsible person must be able to attend the property within 1 hour of being contacted. [24] [26] Fees, renewal cadence, caps, inspections, and penalty amounts are not published in accessible form; confirm them with the Town when you request the application package. [25]

Port Colborne

Port Colborne's regime is the region's newest: By-law 7388/79/25, approved September 23, 2025 and in force November 1, 2025. Licences must be obtained and displayed, and the licence number must appear in every listing and advertisement. [27] [28] Fees run $800 to $1,000 plus HST for a new licence and $480 to $600 plus HST for renewal, depending on zone class. [27] Occupancy is capped at 2 renters per licensed bedroom to a maximum of 10, day guests are limited and must leave overnight, and operators need at least $2 million in liability insurance plus a 24/7 local contact. [27] [28] Certifications cover electrical, HVAC, septic, well water, and chimney where applicable. [27] Penalty amounts for unlicensed operation are not published on the pages we reviewed; confirm with the City. [27]

Wainfleet

Wainfleet requires a licence for every STR, advertised or not, under By-law 026-2023. [30] [31] The 2026 fee is $1,024 per application or renewal, plus fire safety plan review and fire inspection at $60 per hour with a 2-hour minimum each. [30] Two eligibility rules stand out: you must have owned the property for at least 2 years as of your application date, and B&Bs must be owner-occupied. [30] Occupancy limits are set by septic capacity, and water, septic, and fire inspections run on fixed timelines. [30] Penalties are the steepest published in Niagara: administrative penalties of $5,000 to $10,000 for a first violation, $15,000 for a second, and $20,000 for a third and beyond, alongside a demerit system. [30] [31]

West Lincoln

We found no STR or B&B licence in West Lincoln's applications, licences, and permits index, and no STR licensing bylaw in our searches. [33]That is an absence of a licensing program, not a green light: how the township's zoning treats STRs is not confirmed. Contact the township office before listing. [33]

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  • From The Homeowner's Guide by Zulma. Free to read, free to share, no sign-up.
  • Last verified July 21, 2026 against the official sources listed below. Several of these regimes changed within the past year; always confirm current rules with your municipality before applying or listing.
  • This page is general information, not legal advice. Nothing here creates a lawyer-client relationship. For advice on your property, consult a lawyer or your municipal licensing office.
  • Spotted something out of date? Municipal rules move quickly, and we would rather fix it than leave it wrong. Contact details are in the site footer.

Sources

All rules above were checked against the following official municipal pages and documents on July 21, 2026.

  1. Niagara-on-the-Lake, Short-Term Rentals: https://www.notl.com/short-term-rentals
  2. Niagara-on-the-Lake, Council pause announcement: https://www.notl.com/recreation-community/community-news/public-announcement-council-approves-changes-short-term-rental
  3. Niagara-on-the-Lake, Municipal Accommodation Tax: https://www.notl.com/council-government/municipal-accommodation-tax
  4. Niagara-on-the-Lake, STR application: https://www.notl.com/form/short-term-rental
  5. Niagara Falls, Vacation Rental Units: https://niagarafalls.ca/building-planning-and-business/business-licences-and-renewals/vacation-rental-units/
  6. Niagara Falls, Bed and Breakfasts: https://niagarafalls.ca/building-planning-and-business/business-licences-and-renewals/bed-and-breakfasts/
  7. Niagara Falls, Owner Occupied Short-Term Rentals: https://niagarafalls.ca/building-planning-and-business/business-licences-and-renewals/owner-occupied-short-term-rentals/
  8. Niagara Falls, Municipal Accommodation Tax: https://niagarafalls.ca/property-home-and-environment/property-tax-and-assessment/municipal-accommodation-tax/
  9. St. Catharines, Short-Term Rentals overview: https://www.stcatharines.ca/home-property-and-environment/short-term-rentals/
  10. St. Catharines, Short-Term Rental Licensing: https://www.stcatharines.ca/business-and-economic-development/short-term-rental-licensing/
  11. St. Catharines, Municipal Accommodation Tax: https://www.stcatharines.ca/property-taxes/municipal-accommodation-tax/
  12. St. Catharines, application portal: https://build.stcatharines.ca/home
  13. Fort Erie, Short-Term Rentals for Operators: https://www.forterie.ca/en/build-and-invest/short-term-rentals-for-operators.aspx
  14. Fort Erie, Short-Term Rentals hub: https://www.forterie.ca/en/build-and-invest/short-term-rentals.aspx
  15. Welland, Short-Term Rentals: https://www.welland.ca/BylawEnforcement/ShortTermRentals.asp
  16. Welland, application portal: https://cviewportal.welland.ca/cityviewportal
  17. Thorold, Residential Rental Licensing: https://www.thorold.ca/en/business-services/residential-licensing.aspx
  18. Lincoln, Short-Term Accommodations: https://www.lincoln.ca/STA
  19. Lincoln, licensing approval media release: https://www.lincoln.ca/council-and-administration/news-updates/media-release-town-lincoln-approves-new-short-term
  20. Lincoln, STA and Municipal Accommodation Tax: https://www.lincoln.ca/STAMAT
  21. Lincoln, STA licence application: https://www.lincoln.ca/form/short-term-accommodation-license
  22. Grimsby, Short-Term Accommodations (Let's Talk Grimsby): https://www.letstalkgrimsby.ca/short-term-accommodations-rentals
  23. Grimsby, staff report BYL-24-06: https://pub-grimsby.escribemeetings.com/filestream.ashx?DocumentId=33587
  24. Pelham, By-law 4257-2020: https://www.pelham.ca/media/0o3ojtfq/4257-2020-signed.pdf
  25. Pelham, STA application form: https://www.pelham.ca/media/m0liabtk/application-form-sta.pdf
  26. Pelham, responsible person consent form: https://www.pelham.ca/media/hvabmjbr/responsible-person-consent-form.pdf
  27. Port Colborne, Short-Term Rentals: https://www.portcolborne.ca/en/city-hall/short-term-rentals.aspx
  28. Port Colborne, bylaw approval news release: https://www.portcolborne.ca/en/news/new-by-law-to-regulate-short-term-rental-accommodations-in-port-colborne-approved-by-city-council.aspx
  29. Port Colborne, Municipal Accommodation Tax: https://www.portcolborne.ca/en/city-hall/municipal-accommodation-tax.aspx
  30. Wainfleet, Short-Term Rentals: https://www.wainfleet.ca/str
  31. Wainfleet, STR statement: https://www.wainfleet.ca/STRStatement
  32. Wainfleet, licence application: https://www.wainfleet.civikit.com/form/str-licence-application
  33. West Lincoln, Applications, Licences and Permits: https://www.westlincoln.ca/en/township-office/applications-licences-and-permits.aspx