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Small Business Property Tax Subclass
Last Update: March 4, 2026
Toronto, Ontario, Canada
Toronto offers small business property tax reduction program
Tax Credits
Overview
The Small Business Property Tax Subclass program provides a maximum reduction of 35% for eligible small business properties' municipal taxes and a 15% reduction on the provincial education portion of property taxes. The purpose of the program is to offer tax relief to small business property owners in Toronto by reducing their property tax rates under specific eligibility criteria.
At a glance
Funding available
Financing goals
- No objectives are currently available
Eligible Funding
- No Condition
Timeline
- Open Date : January 2, 2024
Eligible candidates
Eligible Industries
- Retail trade
Location
- Toronto
- Ontario
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Non-profit candidates
Sector of operation
- Business Associations
Target groups
- Business owners / entrepreneurs
Revenue structures
- All structures
Scope
- Municipal
- Provincial
Activities funded
- Operation of eligible small business commercial properties within designated areas in Toronto.
Eligibility
- The property must be classified within the Commercial or New Commercial Property Tax Class (CT or XT classification), with certain property types excluded.
- The property's current value assessment must fall within the specified range for its location (generally between $10,000 and $1 million citywide, or between $10,000 and $7 million in designated downtown, waterfront, growth centres, or avenue areas).
- For properties in downtown, waterfront, growth centres, or avenues: the lot size must be 7,500 square feet or less, or the gross floor area must be 2,500 square feet or less (for commercial condominiums).
- For strip plaza properties: classified within the specified property codes, have two or more attached retail establishments with shared/common parking, a value assessment between $10,000 and $7 million, and both site area and gross floor area less than or equal to 25,000 square feet.
Who is eligible?
- Owners of commercial or new commercial properties within eligible areas of Toronto
- Owners of identified strip plaza properties classified as commercial
- Retail property owners with multiple attached establishments and shared parking (within defined property types)
Who is not eligible
- Properties classified as office buildings.
- Properties classified as shopping centres.
- Properties classified as parking lots or vacant land.
- Land already classified within the Creative Co-location Facility subclass or Vacant Land subclass.
- Properties that do not contain an affixed building or structure, or land for which a demolition permit has been issued.
Eligible geographic areas
- City of Toronto, Ontario
- Properties located within Downtown and Central Waterfront, Growth Centres, and Avenues, as defined by the City of Toronto
How to apply
1
Consultation of the Eligibility List
Access the City's Open Data portal to consult the list of properties eligible for the small business subclass.
2
Request for Review
- Prepare the necessary information: assessment roll number, street number and address, names of owners.
- Provide contact details and authorization if an agent is acting on your behalf.
- Explain the reason for the contestation and provide all supporting documents.
- Send the request by fax to 416-696-3424 or in person to payment and information counters.
3
Appeal Process
- If you disagree with the decision, complete the appeal form and fax it to the Appeals Authority at 416-885-0462, and simultaneously to the Program Administrator at 416-696-3427 and 416-696-3424.
- Consult the rules and procedures of the Appeals Authority for more details on the appeal process.
Additional information
- Property owners do not need to apply as eligibility for the subclass is determined automatically and reflected in the final property tax bill.
- The City may audit properties at any time to ensure continued eligibility; properties undergoing changes may become ineligible during the year.
- A public list of eligible properties is maintained and updated through the City’s Open Data portal.
- Tenants seeking benefit from the tax reduction should discuss with their landlord, as tenants cannot file disputes or appeals directly.
Contacts
416-885-0462
