Lower Ontario’s Small Business Tax Rate (SBTR) & increase the threshold NOW!

Ontario’s SBTR is tied for highest in the country at 3.2%, and hasn't seen a decrease since 2020.

The SBTR threshold has been stuck at $500,000 since 2007.

Your business could save up to $25,000 annually if the Ontario government...

Lowers the SBTR from 3.2% to 2%:
Up to $6,000 in annual savings

Raises the threshold from $500,000 to $700,000:
Up to $19,000 in annual savings

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84% of small business owners (who qualify for the SBTR) agree that Ontario should lower the SBTR and increase its threshold!

Hon. Peter Bethlenfalvy, Minister of Finance
Hon. Nina Tangri, Associate Minister of Small Business

As a small business owner, I was grateful when the Ontario government reduced the Small Business Tax Rate (SBTR) from 3.5% to 3.2% in January 2020. But that was over five years ago!

Economic uncertainty is driving up the cost of doing business like never before, with low consumer demand and U.S. tariffs adding fuel to the fire. A lower SBTR would mean more money in my pocket to hire and upskill employees, invest in technology and growth, and contribute to a stronger, more resilient Ontario economy.

The SBTR threshold has been stuck at $500,000 since the last increase in 2007. If it had been indexed to inflation at that time, it would currently sit at $723,879.084 – a 44.8% increase over 17 years!

If you want small businesses to come out on top in the fight against tariffs, then my business needs permanent tax changes NOW!

I am calling on you to:

  • Immediately lower the SBTR to 2%, with a plan to gradually bring it down to 0%.
  • Immediately increase the SBTR threshold to at least $700,000.
  • Index the SBTR threshold to inflation annually.
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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. 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.