Toronto, February 10, 2026 – On behalf of our over 4,200 small business members in Toronto, we commend the city for increasing its small business subclass tax savings from 15% to 20%, especially during these challenging and uncertain economic times. The 20% will be automatically matched by the province in Business Education Tax (BET) reductions.
This is a solid step on the path to reaching the full 35% savings allowed by the Ontario government under its optional small business property tax subclass. This provincial tool has been adopted by only two municipalities: Toronto and Ottawa. Participating municipalities are responsible for determining the specific eligibility criteria and may set the subclass tax reduction up to 35% of the property class’s municipal rate. Due to CFIB’s advocacy efforts, these savings are now automatically matched by the province in BET reductions. Previously, any participating municipalities were required to notify the Ministry of Finance about their decision to adopt the subclass and conduct stakeholder consultations before savings matching would be considered.
Year after year, our members have let us know that taxes remain their top cost constraint. With tax savings like this, our members have told us they would increase employee compensation (51%), expand their operations (44%), and hire new employees (34%).
We look forward to working with the city on refining the eligibility criteria so more small businesses can benefit from the 20% savings, including adding properties in office buildings and shopping centres.
-Angela Drennan, Vice-President, Legislative Affairs (Ontario)
-Julie Kwiecinski, Director of Provincial Affairs (Ontario)
For media inquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with over 100,000 members across every industry and region, including over 39,000 in Ontario. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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