Small Business Property Tax Subclass
Last Update: June 23, 2025
Toronto, ON
Toronto offers small business property tax reduction program
Small Business Property Tax Subclass at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : February 16, 2024
- Closing date : May 16, 2024
Financing Type
Tax Credits
Eligible Industries
- Retail trade
Grant Providers
- City of Toronto
Status
Open
Overview of the Small Business Property Tax Subclass program
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.
Financing terms and conditions
- Eligible properties receive a 15% reduction on the commercial property tax rate for the 2024 tax year.
- The Province of Ontario provides a matching 15% reduction in the provincial education portion of property taxes for eligible properties.
Eligible projects & activities
- Operation of eligible small business commercial properties within designated areas in Toronto.
Eligibility criteria of the Small Business Property Tax Subclass program
- 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 to the Small Business Property Tax Subclass program
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.
Contact City of Toronto
416-885-0462
Apply to this program
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