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.
2018 Tax Policies Approved by Council
To help protect businesses from property tax increases arising from the recent reassessment, City Council adopted item EX30.5 and approved tax policies for 2018 that expand and enhance capping protection for eligible properties.
Changes to Tax Capping and Claw-back Policy for 2018
- properties in the commercial, industrial and multi-residential tax classes will see property tax increases limited to 10 per cent of the preceding year’s annualized taxes, plus a portion of Council’s approved budgetary rate increase.
- properties previously at full Current Value Assessment (CVA) taxation levels may now be eligible for capping protection
- to fund the caps on tax increases, properties subject to assessment related tax decreases will continue to have a portion of the tax decrease withheld (clawed-back) as in prior years.
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.
If your tax bill includes a Business Improvement Area (BIA) levy amount, it is because your property is located within the boundary of a designated BIA. Annually, each BIA approves a budget that is used to beautify the neighbourhood and promote it as a place to shop, visit or do business. All commercial and industrial properties located within the boundaries of a BIA are automatically members and must pay the BIA levy amount.
The various BIA incentive programs include:
- Commercial Façade Improvement Program
- Outside Mural & Street Art Program
- Streetscape Improvement Program
- Streetscape Master Plan Program