Vehicles-for-Hire & Transport · 6 min read · Last updated
A tow truck in Toronto is a licensed vehicle: owning and operating one — a motor vehicle the public can pay to tow other vehicles — requires a Tow Truck Owner licence. Two things every owner should know up front: individual owners may drive their own truck without a separate driver licence, and municipal licensing now runs alongside Ontario's provincial towing oversight.
The City of Toronto lists this under its “Vehicle” category: “A licence is required to own and operate a "tow truck". These refer to a motor vehicle that the public can pay to tow other vehicles. Individual owners may drive their tow truck without obtaining a separate tow truck driver licence.”
Who needs this licence?
The licence is required to own and operate a tow truck, which the City defines as a motor vehicle that the public can pay to tow other vehicles. If your truck tows for paying customers — breakdowns, collisions, private-property removals — its owner needs this licence; a truck used only to move your own equipment is outside the category.
The category includes a practical break for owner-operators: an individual owner may drive their own tow truck without obtaining a separate tow truck driver licence. The driver licence exists for the other case — people driving trucks they do not own — so a one-truck owner-driver needs one licence, not two. The moment you hire a driver, that person needs the Tow Truck Driver licence.
What documents do you need?
- Government-issued identification for the applicant (two pieces, at least one with a photo)
- Corporate documents or business name registration if the trucks are owned through a company
- Ownership and registration documentation for each tow truck
- Proof of insurance and the vehicle safety documentation the City requests for tow trucks
- Items from the City's supporting-documents checklist for the category
Zoning and premises requirements
Tow trucks work wherever vehicles break down, so on the road it is conduct rules rather than zoning that govern — where trucks may stop and stage, how they approach collision scenes, and the rules around soliciting work. The premises question is real, though: an owner storing trucks, equipment or towed vehicles at a yard needs that property zoned for the use, and vehicle-storage and yard uses get specific zoning treatment. Check the base as carefully as the truck.
Inspections and approvals
Each truck must meet the City's vehicle standards — condition, equipment, safety documentation and insurance are verified at application and stay verifiable for the life of the licence, with Municipal Licensing & Standards enforcing in the field.
There is also a second layer: Ontario has introduced provincial oversight of the towing industry, and it operates alongside municipal licensing. A Toronto tow truck owner should expect obligations at both levels — the City's licence does not exempt you from provincial requirements, and provincial compliance does not replace the City licence.
How much does it cost?
Budget for an application fee and an annual renewal fee per licensed truck, set in the City's licensing fee schedule, confirmed during the application and paid to the City directly. Any provincial obligations carry their own costs on their own track.
How to apply
Apply through Municipal Licensing & Standards — online via the City's Business Licence & Permit portal, launched January 2026, or in person. File the vehicle documentation, insurance evidence and corporate papers together, and if you employ drivers, get their Tow Truck Driver licence applications moving at the same time so trucks and drivers are legal on the same day.
Permits2Go's workspace keeps the per-truck files and the driver roster organized — the paperwork multiplies quickly in towing, and organized files are what keep a fleet on the road.
Renewals and staying compliant
Renew annually for every truck, keep insurance continuous, and report changes — replacement trucks, corporate changes, drivers joining or leaving. Keep the provincial side current in parallel: in a two-layer regime, the truck is only as legal as its weakest layer.
Quick quiz: test what you learned
Three questions, all answered in this guide. Click an answer to check it.
1. Can an individual tow truck owner in Toronto drive their own truck without a separate driver licence?
The owner-driver exemption is built into the category: the separate driver licence is for people driving tow trucks they do not own.
2. What counts as a tow truck under Toronto's licensing?
The definition turns on paid towing for the public — a truck that never tows for paying customers is outside the category.
3. How does provincial towing oversight relate to Toronto's tow truck licence?
Ontario introduced provincial oversight of the towing industry, and it runs in parallel with the City's licensing rather than replacing it.
Skip the paperwork
Tell Permits2Go about your business and it assembles the licence application for you — document checklists, e-signatures and a guided workspace for Toronto, with more cities on the way.
This guide is general information, not legal or professional advice. Licensing requirements, by-laws and fees change and vary by municipality — always confirm the current rules with the City before you apply.