Toronto Business Incentives
Holding the line on business taxes
Commercial and industrial property taxes in the City of Toronto have declined dramatically in the last 10 years and are now essentially frozen.
For 2008, Council has approved a strategy to accelerate tax rate reductions for properties that are included in the "Residual Commercial" tax class.
The strategy:
- Limits municipal budgetary tax increases for commercial and industrial property owners to a maximum of one third of any residential budgetary tax increase.
- Shifts property tax away from the commercial/industrial property class onto the residential property class, which is anticipated to offset budgetary tax increases for commercial and industrial property owners.
Commercial, industrial and multi-residential taxes are set at a ratio target of 2.5-times residential, to be achieved by 2017. The City is on target to meet this timeline.
In addition, small business will see an accelerated tax reduction, and will reach the target ratio of 2.5 times residential by 2013.
In 2007 the Business Education Tax in Ontario was changed to reduce commercial and industrial business education taxes in Toronto to 1.6% of CVA by 2014. New commercial and industrial buildings were taxed at the lower 1.6% education tax rate immediately.
The tax reductions for new commercial and industrial buildings in the City of Toronto reduce 2011 property taxes by approximately 7%:
| Existing Building | New Building | |
|---|---|---|
| Commercial | 3.36614% | 3.15574% |
| Industrial | 3.38614% | 3.15034% |
To compare tax rates of local municipalities download: GTA Tax Rates 1998 2011.
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