Charlottetown, October 20, 2026 – As Prince Edward Island municipalities begin preparing their 2027 budgets, the Canadian Federation of Independent Business (CFIB) is launching a petition calling on mayors and councils to end the practice of taxing commercial properties at higher rates than residential properties of the same value.
The petition follows the release of CFIB’s Atlantic Canada Commercial Property Tax Report in September, which examined 80 municipalities across the four Atlantic provinces. In all but four of those municipalities, businesses are taxed at a higher rate than residential properties of the same value.
“Same property value, but a bigger tax bill simply because you’re a business. That’s the reality facing too many small businesses on Prince Edward Island,” said Frédéric Gionet, CFIB’s Atlantic Director. “Our petition gives Island business owners a direct way to tell their municipal councils that it’s time for a fairer system.”
The burden is particularly significant for the smallest businesses. Among businesses with fewer than five employees, 31% say property taxes account for more than 10% of their operating costs, while 40% say property taxes have had a significant negative impact on profitability. Among businesses negatively affected by property taxes, 21% have delayed or cancelled an investment and 18% have reduced staffing or employee hours.
Small business owners also feel their concerns are not being heard. Nearly three in four (73%) Atlantic small business owners disagree that their municipality understands how property taxes affect their business.
“Property tax doesn’t care whether a business had a good year or a bad one. The bill still arrives,” said Gionet. “We’re not asking municipalities to collect less property tax. We’re asking them to stop placing a disproportionate share of the burden on local businesses and commit to a clear, five-year path toward equal tax rates.”
CFIB is calling on PEI municipalities to:
• Adopt a five-year plan to reduce and ultimately eliminate higher property tax rates on commercial properties.
• Publicly report how the property tax burden is distributed between residential and commercial property owners.
CFIB is also calling on the Prince Edward Island government to ensure provincial property tax policy treats residential and commercial properties fairly and does not impose a higher tax burden simply because a property is used for business.
“Island businesses create jobs, invest in their communities and support local organizations every day,” added Gionet. “They shouldn’t face a higher property tax rate simply because there’s a business sign on the door.”
Small business owners can add their voice by signing CFIB’s petition here.
For media enquiries or interviews, please contact:
Frédéric Gionet
Director, Legislative Affairs, Atlantic
frederic.gionet@cfib.ca
c: 506-961-2793
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized
businesses, with 103,000 members across every industry and region. In Atlantic Canada alone, CFIB represents
more than 10,000 members and collectively employ more than 124,000 people in the region. CFIB advocates for
policy change at all levels of government, provides expert advice and tools, and negotiates exclusive savings to
help business owners succeed. Learn more at cfib.ca.
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