Quick answer. As of the April 1, 2025 changes and reflecting the April 2026 Alberta Tourism Levy update, Calgary short-term rental hosts must: hold a Short-Term Rental Business Licence under City of Calgary Business Licence Bylaw 32M98 in one of two categories (Primary Residence or Non-Primary Residence); carry at least $2 million commercial general liability insurance specifically endorsed for short-term rental use; have a fire safety plan on file; comply with any applicable condo bylaws (which the City no longer verifies but which remain enforceable by the condo corporation); and collect the 6 percent Alberta Tourism Levy on stays under 28 consecutive days. Calgary's definition of short-term rental was expanded in April 2025 to include stays up to 180 consecutive days, so many medium-term furnished rentals now fall within the licensing framework. Unlike Toronto and most of the GTA, Calgary continues to allow non-primary residence short-term rentals, meaning investors can still legally operate STRs on properties they do not personally live in. Operating without the licence risks fines of up to $10,000 per infraction plus platform removal.
What Counts as a Short-Term Rental in Calgary in 2026
Since the April 2025 bylaw amendments, Calgary defines a short-term rental as any residential accommodation of up to 180 consecutive days offered on platforms like Airbnb, VRBO, Booking.com, or arranged privately. That 180-day definition is deliberately broad. It captures:
- Traditional weekend and week-long Airbnb-style rentals (typical 2 to 14 nights).
- Longer vacation stays (2 to 8 weeks).
- Corporate housing and relocation rentals (30 to 90 days).
- Medium-term furnished rentals for oil and gas rotational workers, healthcare travellers, and long-distance visitors (60 to 180 days).
A rental of 181 days or longer is a long-term residential tenancy and falls under the Alberta Residential Tenancies Act, not the STR bylaw. The 180-day boundary was chosen specifically because Calgary regulators wanted to close the gap where furnished 60 to 90-day rentals were operating outside both frameworks.
The Two Licence Categories
Primary Residence STR Licence
A Primary Residence STR is a property where the host actually lives as their principal residence and rents out the whole home or part of it (a room, basement suite) on a short-term basis. This licence category has slightly lower fees, fewer inspection requirements, and typically approves faster because the fire and life-safety risk profile is closer to a normal owner-occupied dwelling. Documentation required: proof of principal residence (property tax bill in host's name, driver's license address, insurance policy address).
Non-Primary Residence STR Licence
A Non-Primary Residence STR is an investment property (or second home) operated as a short-term rental where the host does not live. Calgary allows this category, which is materially different from Toronto, Mississauga, most of the GTA, and Vancouver, where short-term rentals are largely restricted to a host's principal residence only. For Calgary investors, this makes STR investing operationally viable in a way it is not in most other major Canadian cities. Licence fees and inspection requirements are somewhat higher than for Primary Residence, but the licence is issued to any owner who meets the safety, insurance, and documentation requirements.
Insurance Requirements
All Calgary STR licences require proof of at least $2 million commercial general liability insurance specifically endorsed for short-term rental use. This is not the same as your standard homeowner's or landlord's insurance. Most standard homeowner policies explicitly exclude short-term rental activity, and running an STR under a homeowner policy voids the policy for any claim (STR-related or not) during the period the rental was operating. Standard long-term landlord policies also typically exclude STR activity because of the higher turnover and use-intensity risk.
Alberta insurers that offer STR-endorsed policies include Duuo (a national STR-specialty insurer), Square One, and larger brokers who can package a commercial general liability rider onto a landlord policy specifically for STR use. Typical premium range in Calgary as of 2026 is $700 to $1,800 per year per property for a $2 million liability policy, depending on unit type, location, and claims history. Do not skip this. Insurance claims from short-term guests (slip and fall in the shower, kitchen fire, damage to third-party property) are far more common than long-term tenant claims, and the coverage gap is one of the fastest ways to lose a rental property to a lawsuit.
The Fire Safety Plan
The City requires a written fire safety plan on file for the property. For a typical single-family or condo STR, the plan documents the location and quantity of smoke alarms, carbon monoxide alarms, fire extinguishers, and clearly marked exits; the primary and secondary evacuation routes from each sleeping area; the location and operation of the electrical panel and gas shut-off; and emergency contact information posted visibly in the unit. Most hosts write this as a one to two-page document included in the guest welcome book. The City provides a template on the STR business licence application page.
Condo Bylaws (Still Enforceable)
The April 2025 changes removed the requirement that the City verify condo bylaw compliance before issuing an STR licence. This was a procedural simplification for the City, not a removal of the requirement itself. Condo corporation bylaws that prohibit short-term rentals (which is the majority of Calgary condo buildings) remain fully enforceable by the condo corporation. A condo corp can pursue fines, force the STR to shut down, and in extreme cases begin lien proceedings against a unit that repeatedly violates bylaws. Before operating an STR in a condo, obtain and read the current bylaws (not just the ones in the resale package from your original purchase, which may be outdated) and confirm that STRs are permitted or that you have obtained written consent from the board.
The Alberta Tourism Levy (6 Percent, Since April 2026)
As of April 1, 2026, the Alberta Tourism Levy of 6 percent applies to all short-term rental stays of under 28 consecutive days. The levy is collected by the platform (Airbnb, VRBO, Booking.com) or by the host directly if bookings are arranged outside a platform. Hosts operating exclusively through major platforms typically have the levy collected automatically as a line item on the guest booking; hosts who book direct must register with Alberta Tourism and remit the levy themselves. Platforms send hosts an annual tax summary that reflects the levy collected and remitted on their behalf.
Rentals of 28 consecutive days or longer are exempt from the tourism levy. This creates a small incentive to structure medium-term rentals as 28 to 180-day stays rather than 21 to 27-day stays, since the 6 percent difference on a $150 nightly rate is a meaningful pricing lever.
Licence Application Process
- Register on the City of Calgary business licence portal.
- Select the appropriate STR category (Primary Residence or Non-Primary Residence).
- Upload proof of ownership (or a lease with owner consent), proof of principal residence for Primary Residence applications, and the fire safety plan.
- Upload the $2 million liability insurance certificate with the STR endorsement clearly stated.
- Pay the licence fee (typical range in 2026: $172 for Primary Residence, $510 for Non-Primary Residence, subject to City fee schedule updates).
- For Non-Primary Residence applications, the City may schedule a compliance inspection (electrical, fire safety, egress) before issuing the licence.
- Once issued, display the licence number in all STR platform listings (Airbnb, VRBO, Booking.com require licence numbers on Calgary listings).
Typical processing timeline for a Primary Residence licence is two to four weeks. For a Non-Primary Residence licence with inspection, plan on four to eight weeks. Licences are renewed annually with lower renewal fees than the initial application.
Federal Income Tax Considerations
Short-term rental income is fully taxable at the host's marginal rate as business income (typically) or property income depending on the level of service provided. Expenses that are deductible include cleaning, supplies, platform fees, insurance, a portion of mortgage interest (proportional to STR use if the property is mixed-use), depreciation via Capital Cost Allowance (with caveats about triggering a deemed disposition on a principal residence), and reasonable operating costs. As of the 2024 federal budget, expenses related to non-compliant STRs are non-deductible: if you are operating without the required City licence, you cannot claim the associated expenses even if you report the income. This is a material change from the pre-2024 rule and applies to the 2024 tax year forward. It makes licensing not just a City compliance requirement but a federal tax matter.
Return Comparison: STR versus Long-Term Rental
For Calgary landlords weighing STR versus long-term rental on the same property, the 2026 arithmetic tends to favour long-term rental in most cases:
- Gross STR revenue: typically $6,000 to $10,000 per month on a Calgary two-bedroom condo in a good STR neighbourhood at 65 to 75 percent occupancy.
- STR operating cost: platform fees (14 to 18 percent), cleaning ($60 to $120 per turnover, 8 to 15 turnovers per month), supplies ($150 to $300 per month), utilities including internet ($200 to $350), insurance ($120 to $180 per month), business licence amortised ($15 to $45 per month), guest amenities and periodic replacement of linens and kitchenware ($100 to $200 per month), tourism levy pass-through where applicable, and property management if outsourced (typically 20 to 30 percent of gross revenue for full STR management).
- Net STR margin: typically 30 to 45 percent of gross revenue for a self-managed STR; 15 to 25 percent for a fully managed STR.
- Same unit as a long-term rental: $2,100 to $2,600 per month gross, 6 to 10 percent property management if managed, 8 to 12 percent all-in operating cost (insurance, minor maintenance, vacancy reserve), net margin typically 78 to 88 percent of gross rent.
Run this on your specific property before switching to STR. The scenarios where STR wins are properties in specific high-demand neighbourhoods (near Stampede grounds, downtown business districts, adjacent to major hospitals) or highly amenitised units (mountain-view suites, luxury finishes, unique architecture) where the STR premium over long-term rent is 2.5x to 3.5x. For a generic suburban condo, the operating cost stack usually eats the premium.
What Not to Do
- Do not operate an unlicensed STR. Platform enforcement has tightened, condo boards are more vigilant, and 2024 federal tax rules make unlicensed operation a tax problem as well as a City problem.
- Do not skip the $2 million STR-endorsed insurance and rely on your homeowner or landlord policy. A single major guest incident can end the property.
- Do not operate in a condo without explicit bylaw permission or written board consent. The City no longer checks, but the condo corp does.
- Do not forget the tourism levy on stays under 28 days. It is now a mandatory pass-through.
- Do not treat STR income as passive-property income for tax purposes if you are providing hotel-style services (linen changes between stays, greeting, food). CRA increasingly treats these as business income with different rules.
Frequently Asked Questions
Do I need a City business licence to Airbnb my primary residence a few weekends a year?
Yes, if the rental is advertised on a booking platform (Airbnb, VRBO, Booking.com) and the guest stays are under 180 consecutive days. The Primary Residence STR licence covers this scenario and is the lower-fee category. Casual short-term hosting is not exempt from the licensing framework.
Can I Airbnb a condo in Calgary?
The City permits it. The condo corporation may not. As of 2026, the majority of Calgary condo buildings prohibit short-term rentals in their bylaws. A minority permit them, sometimes with restrictions (minimum-stay requirements, host-must-be-present rules, occupancy caps). Before listing a condo unit on any STR platform, obtain the current condo bylaws in writing and confirm STR permission. Board consent that is not in the bylaws can be revoked, so bylaw-level permission is preferable.
How is Calgary different from other Canadian cities on STR rules?
Calgary allows non-primary-residence STRs, meaning investors can operate STRs on properties they do not live in. Toronto, Mississauga, and most of the GTA restrict STRs to a host's principal residence only. Vancouver has a principal-residence requirement plus a business licence. Montreal has varied rules by borough. Halifax and Edmonton allow investor-operated STRs with licensing. On a national comparison, Calgary sits at the more permissive end of the regulatory spectrum for STR investors.
What happens if I operate without a licence?
Fines under Business Licence Bylaw 32M98 can reach $10,000 per infraction. Platforms (Airbnb, VRBO) verify licence numbers on Calgary listings and can suspend or remove unlicensed listings. Under 2024 federal tax rules, expenses associated with non-compliant STRs are non-deductible, so an unlicensed operator can end up owing tax on gross revenue rather than net profit. This is a significant tax cost that often exceeds the licence fee by an order of magnitude.
Do I have to charge and remit GST/HST on STR revenue?
STR income is generally subject to GST/HST if annual taxable revenue across all your business activity exceeds the $30,000 small supplier threshold. If your STR revenue plus any other business revenue is under $30,000 you are exempt. If over, you must register for a GST number, charge 5 percent GST on Alberta STR bookings, and remit to CRA. Platforms typically do not collect GST on your behalf, so hosts must add it to their pricing or absorb the 5 percent into the nightly rate.
Should I switch my Calgary rental to STR?
Only if you have run the specific operating-cost math on your specific property in your specific neighbourhood, and the STR margin comfortably exceeds the long-term rental margin after accounting for insurance, tourism levy, higher maintenance cycle, platform fees, and either the time cost of self-management or the 20 to 30 percent fee for professional STR management. For most standard suburban Calgary condos and houses, long-term rental wins on risk-adjusted return. For specific downtown, view, or luxury units in high-demand STR neighbourhoods, STR can win. The wrong reason to switch is that STR sounds more exciting; the right reason is that your operating math shows a durable premium.
Does UrbanLease manage short-term rentals?
UrbanLease's core service is long-term residential property management. For STR-specific management (guest turnover, dynamic pricing, platform management), we typically refer to dedicated Calgary STR management specialists. See our short-term rental service overview at /airbnb-management-calgary for the full breakdown of what we do and do not manage in the STR category. Property management services are provided by PREP Realty, a RECA-licensed Alberta brokerage.
Bottom Line
Calgary's STR framework in 2026 is workable and, unusually for a major Canadian city, still permissive for investor-owned properties. The compliance requirements (business licence, $2 million liability insurance, fire safety plan, tourism levy collection, condo bylaw check) are real but not onerous for hosts who set up correctly the first time. The 2024 federal tax rule that makes expenses non-deductible for non-compliant STRs has changed the math so materially that unlicensed operation is almost always a losing strategy after tax. If STR is genuinely the right operating model for your specific Calgary property, get the licence in place before you list, carry the correct insurance, and treat the ongoing operations as a small hospitality business rather than passive rental. If long-term rental gives you similar or better risk-adjusted return with a fraction of the operational load, choose long-term. UrbanLease can help you run the comparison and manage the long-term rental side. Property management services provided by PREP Realty, a RECA-licensed Alberta brokerage.