Airbnb and short-term rental rules in the District of Chester, Nova Scotia
Written by Casa Scotia, a Nova Scotia short-term rental manager. Not affiliated with any municipality or the Province. How we keep our interest out of it →
At a glance
Generally yes, after the municipal step: Short-Term Rental Licence (By-Law 158). Then you register with the Province.
Can I?
The home you live in (as District of Chester’s by-law defines it)Allowed
Short-Term Rental Licence (By-Law 158): $0 (the licence itself); liability insurance is the operator's own cost
Ask the Municipality of the District of Chester's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law.: required; cost not published
The home you live in: $50 a year
Commercial short-term rental (a home you don’t live in): $500 per unit a year
Personal vacation home (a home you don’t live in, kept mainly for your own use): $50, or $150 with five or more bedrooms
Airbnb’s tax page doesn’t list District of Chester (checked 28 Sep 2026). Unless your payout shows Airbnb collecting it, you add and remit it.
Vrbo’s tax page doesn’t list District of Chester (checked 28 Sep 2026). Unless your payout shows Vrbo collecting it, you add and remit it.
Booking.com’s tax page doesn’t list District of Chester (checked 28 Sep 2026). Unless your payout shows Booking.com collecting it, you add and remit it.
On direct bookings, you add and remit it (reported by ?)(as of 28 Sep 2026)
The Municipality of the District of Chester, Nova Scotia, regulates short-term rentals through a licence rather than through zoning: both of its land use by-laws say a short-term rental needs no development permit, in any zone. Council has also adopted a 3% marketing levy with a later start date. Marketing levy →
Its rules cover communities such as Chester, Chester Basin, New Ross, Blandford and Martin's Point. The Town of Mahone Bay and the District of Lunenburg next door are separate municipalities with their own by-laws. Nearby and often confused →
Where this guide applies
Community
What to check
Hubbards
Straddles Halifax Regional Municipality
Which municipality a property is in depends on where its parcel (PID) sits, not on the community name or the mailing address. The property tax bill shows it; either office can confirm it.
The Village of Chester is part of the Municipality, not a separate town; it has its own land use by-law, with the same short-term rental clause as the Municipal one. Hubbards is split with the Halifax Regional Municipality, whose rules apply on its side of the line. Nearby and often confused →
Is a short-term rental allowed here?
Across the unit
The home you live in (as District of Chester’s by-law defines it)AllowedAllowed in every zone across the municipality, the Village of Chester included. The land use by-laws do not govern short-term rentals and require no development permit.
A home you don’t live inAllowedAllowed in every zone across the municipality, the Village of Chester included. Neither land use by-law has a primary residence test for short-term rentals.
“Municipal Land Use By-law s.4.1.11 Short-term Rentals (p.51): "Use of property as a Short-term rental is not governed by this By-Law and no development permit is required. Short-term rentals are subject to other relevant Municipal policy, by-law(s) or order(s) approved by Council." Definition, s.2.0 (p.34): "Short-term rental means the use of a residential dwelling unit, where guest accommodation facilities are contained within one building on a lot, intended to provide accommodation to the travelling public for periods of 28 days or fewer, and where the facility is only rented to one party at a time. Short-term rentals may include kitchen and washroom facilities but shall not include features open to the general public such as meeting rooms, restaurants, or entertainment facilities." Village of Chester Land Use By-law s.4.1.4 Short Term Rentals (p.49): "Use of property as a Short Term Rental is not governed by this By-law and no development permit is required. Short Term Rentals are subject to other relevant Municipal policy, by-law(s) or order(s) approved by Council."”
In plain words, neither by-law treats a short-term rental as a land use, so there is no zone test and no development permit for one. The exemption covers what both by-laws define as a short-term rental: one dwelling unit in one building, rented to one party at a time, with nothing open to the public.
Three cases are less settled: several rental cottages on one lot, a bunkie or other accessory building, which the Municipal by-law bars from human habitation, and a rental cottage in the Lakeside zone. Ask Municipality of the District of Chester, Planning Services, 902-275-2599, contact page how such a property is classed.
Municipal step
Municipal step · Licence
Short-Term Rental Licence (By-Law 158)
Issued by
Municipality of the District of Chester (the licensing office under By-Law 158)
Conditions
Ask the Municipality of the District of Chester's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law.
Ask the Municipality of the District of Chester's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law.
Ask the Municipality of the District of Chester's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law.
Ask the Municipality of the District of Chester's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law.
Fee
$0 (the licence itself); liability insurance is the operator's own cost
Applies to
Both the home you live in and a home you don’t
Processing time
not published
Term
not stated in the text read
The Short-Term Rental Licensing By-law requires a licence before anyone advertises, promotes or operates a short-term rental, a traditional tourist accommodation or an unusual lodging such as a yurt or bunkie. The Chief Administrative Officer or a designate issues and renews it. Ask Municipality of the District of Chester, Planning Services, 902-275-2599, contact page whether the licence is the land-use document the Province's registration needs.
Steps and costs
Check the zone of the lot and confirm the use with Municipality of the District of Chester, Planning Services, 902-275-2599, contact page.
Short-Term Rental Licence (By-Law 158), from Municipality of the District of Chester (the licensing office under By-Law 158). Details
Register for the marketing levy and remit it on the bookings you collect it on. Details
Renew the Short-Term Rental Licence (By-Law 158) (not stated in the text read).
Then register each unit with the Province and show the number on every listing. The provincial checklist →
What it costs an owner
Cost
The home you live in
Commercial short-term rental (a home you don’t live in)
Short-Term Rental Licence (By-Law 158)
$0 (the licence itself); liability insurance is the operator's own cost
$0 (the licence itself); liability insurance is the operator's own cost
Ask the Municipality of the District of Chester's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law.
required; cost not published
required; cost not published
Provincial registration
$50 a year
$500 per unit a year
First year, municipal and provincial
No total: a condition’s cost isn’t published
On a phone, swipe the table sideways to see both columns.
A personal vacation home (a home you don’t live in, kept mainly for your own use; 150 rental days per registration year; an applicant may register only one personal vacation home) registers as a traditional tourist accommodation instead: $50, or $150 with five or more bedrooms a year (Regulations s.2(1), s.14).
The levy and HST are charged to guests, not owners; they are in Marketing levy.
Marketing levy
Starts 1 Jan 2027
Council adopted a 3% marketing levy (null). It takes effect on 1 Jan 2027; no levy applies to stays before then. Ask Municipality of the District of Chester, municipal office, 902-275-4109, contact page whether it covers stays after that date booked before it.
Who collects it
Airbnb’s tax page doesn’t list District of Chester (checked 28 Sep 2026). Unless your payout shows Airbnb collecting it, you add and remit it.
Vrbo’s tax page doesn’t list District of Chester (checked 28 Sep 2026). Unless your payout shows Vrbo collecting it, you add and remit it.
Booking.com’s tax page doesn’t list District of Chester (checked 28 Sep 2026). Unless your payout shows Booking.com collecting it, you add and remit it.
On direct bookings, you add it to the guest’s bill and remit it (reported by ?)(as of 28 Sep 2026)
Charged to guests, not an owner cost
The levy and HST (14%) are added to the guest’s bill. HST is charged on the levy as well as on the room: a municipal levy is part of the price HST applies to, and no Nova Scotia marketing levy is on the federal list of levies left out of that price. The levy is separate from HST, which is a federal and provincial sales tax.
In plain words, the levy is charged to the guest on the price of the stay, and nothing is owed before 1 Jan 2027 (as of 28 Sep 2026). From then, the by-law makes a booking platform the Municipality's collection agent, and a host who sells directly the agent who collects and remits it.
Each channel's line gives what we found on that platform's own tax page, and when we checked it.
Provincial registration
Register each unit with the Province before advertising it. The first application includes District of Chester’s land-use document; a renewal doesn’t need it again unless the Province asks.
Fee here: $50 a year for the home you live in; $500 per unit a year for a commercial short-term rental (a home you don’t live in); a personal vacation home pays the traditional rate, $50 or $150.
Show the registration number on every listing, and renew by April 1 each year.
Municipality of the District of Chester is in tier 2 of the Province's Schedule A. A commercial short-term rental (a home you don't live in) pays the tier 2 fee per unit each year. A personal vacation home, kept mainly for its owner's use, pays the lower traditional rate, and a primary residence the primary-residence fee.
Source · checked 28 Sep 2026 · Confirmed in source
What we haven't confirmed yet
Ask the Municipality's planning office which office issues the occupancy permit that the short-term rental licence requires where applicable, and under which by-law. (checked 6 Oct 2026 · source)
Ask the Municipality's planning office how a lot with several rental cottages is classed: the Strategy treats five or more units as a commercial use, while the by-law sets no threshold. (checked 6 Oct 2026 · source)
Ask the Municipality's planning office whether a bunkie or other accessory building may be rented under the licence, since the Municipal by-law bars habitation in accessory structures. (checked 6 Oct 2026 · source)
Does Chester Basin follow the same rules as the Village of Chester?
Yes for the licence and the levy: both places are in the Municipality of the District of Chester, so the same by-laws apply. The Village has its own land use by-law, but it carries the same short-term rental clause as the Municipal one, so neither requires a development permit for a short-term rental. Is a short-term rental allowed here? →
Do I need a development permit for a short-term rental in Chester?
No. Both land use by-laws say a short-term rental is not governed by the by-law and needs no development permit, in every zone and whether or not the owner lives there. The Municipality's short-term rental licence still applies. Is a short-term rental allowed here? →Municipal step →
Do I need a licence to rent out a home in Chester?
Yes. The Short-Term Rental Licensing By-law requires a licence before anyone advertises, promotes or operates a short-term rental in the Municipality. Ask the Municipality's Planning Services whether that licence is the land-use document the Province's registration needs. Municipal step →
When does Chester's marketing levy start, and who collects it?
The 3% levy starts on 1 Jan 2027 (as of 28 Sep 2026), and nothing is owed before then. From that date the by-law makes a booking platform the Municipality's collection agent, and the by-law makes a host who sells directly, without a platform, the agent who collects and remits it. Marketing levy →