Ottawa, March 3, 2026 – The Canadian Federation of Independent Business (CFIB) is calling on the City of Ottawa to increase its small business property tax subclass reduction from 15% to 25%. This move would help the city attract entrepreneurs and stay competitive after the City of Toronto raised its discount from 15% to 20%.
Even when both cities were at the 15% subclass rate, a business owner with a property valued at $450,000 was still paying 28% more in property taxes in Ottawa than in Toronto. Toronto’s recent increase now pushes that gap to 35%.
By moving to a 25% subclass rate, Ottawa could give business owners hundreds of dollars in much-needed tax relief. For example, business owners with a $450,000 property would benefit from more than $1,300 in savings.
“Attracting and retaining entrepreneurs to Ottawa and supporting those who are considering becoming business owners should be a priority for candidates in this October’s municipal election,” said Juliette Nicolaÿ, Bilingual Policy Analyst at CFIB. “Ottawa should position itself as a leader and go further by raising the small business subclass tax savings to 25%.”
The Government of Ontario offers an optional Small Business Property Tax Subclass of up to 35%. Due to CFIB’s advocacy efforts, the savings in property taxes are now automatically matched by the province in Business Education Tax reductions. Previously, this was not the case, as 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.
According to CFIB data, with more tax relief, 51% of business owners in Ontario would increase employee compensation, 44% would expand their business, and 34% would hire new employees. All of these things contribute to increasing their productivity and capacity to support the local economy.
To make the City of Ottawa an attractive and competitive place to do business, CFIB recommends municipal government and candidates to the 2026 municipal election to increase the small business subclass from 15% to 25%.
“Many small businesses in Ottawa are under significant strain because of trade disruptions, soft consumer demand, and rising costs. A commitment to raise the small business subclass would send a clear message that elected officials recognize the pressure small businesses are under and stand with local employers,” said Nicolaÿ.
For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
Methodology
Your Voice Survey July 2025: results are based on 848 responses from a stratified random sample of CFIB members in Ontario, to a controlled-access web survey. Data reflects responses received from July 10-24, 2025. Findings are statistically accurate to +/- 6.7 per cent, 19 times in 20.
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, including 1,400 in the Ottawa area. 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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