Toronto, November 6, 2025 – On behalf of our over 39,000 small- and medium-sized business members in all sectors across the province, we will continue to urge the Ontario government to improve tax competitiveness by investing in lower small business taxes. This action would address our Ontario members’ top concern and spur economic growth at a time when it is needed most.
Tariffs have created a climate of economic uncertainty, affecting businesses of all sizes. Ontario small businesses have been feeling direct and indirect tariff impacts, including 39% affected by steel and aluminum tariffs alone.
Today’s Fall Economic Statement mentions some positive, previously announced actions under the government’s $30B tariff relief package for businesses, which includes the return of Workplace Safety and Insurance Board (WSIB) surplus funds to eligible Ontario employers.
Small businesses need more direct measures like WSIB surplus rebates to help them weather the tariff storm and unpredictable economy. They don’t have the time or resources to search and apply for programs for which they end up being ineligible.
We urge the Ontario government to use the March 2026 budget to invest in improving the province’s tax competitiveness. Changes to the Small Business Tax Rate and eligibility threshold, Business Education Tax rates, and Employer Health Tax exemption threshold would allow small businesses to invest in economic growth.
If the government were to reduce the province’s overall tax burden, CFIB’s Ontario members would use the savings to increase employee compensation (51%), expand their operations (44%), and/or hire new employees (34%).
We hope the Tax Action Plan mentioned in today’s announcement will focus on lowering the SBTR from 3.2%-2% and raising its eligibility threshold from $500,000-$700,000. These two measures together would provide up to $25,000 in annual savings for a small business. Ontario’s SBTR is still the highest in the country (tied with Quebec) and it hasn’t been decreased since 2020. The SBTR threshold has been stuck at the same amount since 2007.
The Ontario government could make these two SBTR investments in small business using some of the remaining $4B in the Protect Ontario Account under the second or third streams noted today.
We look forward to reviewing the Ontario Economic Outlook document in detail and participating in the government’s 2026 pre-budget consultations.
-Angela Drennan, Vice-President, Legislative Affairs (Ontario)
-Julie Kwiecinski, Director of Provincial Affairs (Ontario)
-Joseph Falzata, Policy Analyst (Ontario)
For media inquiries or interviews, please contact:
Ryan Mallough, CFIB
647-588-2359
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 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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