Increase Ontario's Small Business
Tax Rate Threshold!

Red circular graphic showing the words CFIB Victory.

The Ontario government listened to CFIB and permanently cut the Small Business Tax Rate from 3.2% to 2.2%!

Now, CFIB is fighting to increase the SBTR threshold that's been stuck at $500,000 since 2007.

Your business could save up to $18,600 annually if the Ontario government...

Raises the threshold from
$500,000 to $700,000

Icon of a small business and percentage sign

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

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

As a small business owner, I'm grateful that the Ontario government reduced the Small Business Tax Rate (SBTR) from 3.2% to 2.2% in the 2026 Budget, starting July 1.

Economic uncertainty, low consumer demand, U.S. tariffs, and now higher fuel prices are driving up the cost of doing business like never before. A higher SBTR threshold would mean more money for my business 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 $752,722 – a 50.5% increase over 18 years!

I am calling on you to:

  • Immediately increase the SBTR threshold to at least $700,000.
  • Index the SBTR threshold to inflation annually.
CFIB logo

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. 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.