The City of Toronto is committed to helping business thrive through business tax reduction initiatives and incentive programs that have positively impacted the city’s competitiveness.
Michael Thompson, Councillor, City of Toronto
Annual business operating costs are significantly lower in Toronto than in many leading international centres. The governments of Canada, Ontario and Toronto provide a range of incentives to allow businesses to grow and prosper in a politically stable environment. Each order of government has demonstrated a commitment to competitive tax rates, resulting in a combined corporate income tax rate of 26.5 per cent, approximately 13 percentage points lower than the U.S. average. Toronto has the lowest development charge rates in the region.
Additionally, business property taxes are becoming increasingly competitive. With the elimination of over 1,500 tariffs on manufacturing inputs, machinery and equipment, Canada was the first country in the G20 to become a tariff-free zone for manufacturers and offers the lowest overall tax rate in the G7. The City of Toronto’s unparalleled financial stability and dynamic investment strategies mitigate the risk of inflation instability, exchange rate fluctuations, and limitations to short or long-term capital access, force majeure, and higher operating costs.
From food services to financial services, ICT to green, fashion, film, tourism and life sciences, Toronto’s multi-sector strength drives growth, innovation and synergies.
Find out more about Toronto’s key industry sectors.
Ranked 17 among the world’s 25 most competitive cities
–ATKearney, 2019 Global Cities Report