Non-Residential Property Tax Strategies
Commercial, industrial and multi-residential property tax strategies are available to assist you.
Capping/Clawback Adjustments To Non-Residential Properties
Tax capping refers to limitations on annual property tax increases for certain commercial, industrial and multi-residential properties.
2017 Tax Policies Approved by Council
On April 26, 2017, City Council adopted item EX24.11 and approved the following policy changes to the Capping and Clawback program effective May 2017:
- increase the capping limit from 5% of prior year Current Value Assessment (CVA) taxes to 10% of prior year taxes
- a higher capping limit accelerates a properties’ progress toward their full-CVA taxation level.
- introduction of a capping threshold of $500
- when a property’s prior-year annualized taxes come within $500 of their full-CVA taxes, they will immediately move to their full-CVA taxation level and be removed from the program.
- once a property reaches full-CVA taxation levels, they are removed from the Capping and Clawback Program
Learn more on the Conclusion of the Vacant Unit Rebate Program.
As part of its overall strategy to enhance Toronto’s business climate, the City continues to reduce its tax rates for commercial, industrial and multi-residential properties to an approved target of 2.5 times that of the residential tax rate. The City expects to reach this targeted tax ratio for all other non-residential properties by 2023.
The Ontario government requires municipalities to levy a lower education tax rate for newly constructed commercial and industrial buildings in municipalities (like Toronto) where the provincial education tax rate remains above the provincial average.
To learn more, visit the Ontario Government web page to determine if your project qualifies for this tax reduction. Council continues to accelerate tax rate reductions for properties that are included in the “Residual Commercial” tax class.