Small Business Property Tax Subclass

• 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

• 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.