News release - Febraury 20, 2026: City of Toronto lowers Small Business Property Taxes through 2026 Budget
Notice: City Council has approved an increase to the tax rate reduction for the Small Business Property Tax Subclass within the Commercial Property Tax Class. The reduction will increase from 15 percent to 20 percent, effective for the 2026 taxation year.
City webpages have been updated to reflect the new 20 percent reduction. Please visit SmallBusinessTaxSubclass to learn more.
In November of 2021, Toronto City Council adopted the report Implementing a Small Business Property Tax Subclass, which provides a reduction in the tax rate for eligible small business properties. The Province of Ontario will provide a matching reduction in the provincial education portion of property taxes for eligible properties.
Business property owners whose property has been included in the small business property tax subclass do not need to take any further action – the small business subclass classification and reduction in tax rates will be reflected in your final property tax bill.
Tenants of eligible small business properties should speak to their landlord about receiving this reduction.
Applicants wanting to appeal , must of received a decision from their Request for Reconsideration – RfR and file their appeal within 90 days from the date of the decision.
Find out if your location is included in the Small Business subclass - List of Eligible Properties.
Learn more about eligibility and the appeal process for the Small Business Tax Class.