Taxes and Budgets for Small Business

Victory!

Newfoundland and Labrador lowers small business tax rate

Budget 2026 delivered a huge win for CFIB members: the government announced that it will reduce the small business tax rate from 2.5% to 2.0% immediately, and further reduce it by 0.5 points in 2027 and 2028, ultimately reaching 1.0%.

The announcement delivers immediate savings – up to $2500 in 2025 alone – and could deliver up to $7500 in savings annually by 2028.

The move makes good on a campaign commitment from the government that came as a direct result of CFIB advocacy in the leadup to the election and during the pre-budget process.

CFIB Director of Provincial Affairs for Newfoundland and Labrador, Jonathan Galgay, held meetings with Premier Wakeham, Finance Minister Craig Pardy, and a host of cabinet ministers and MHAs over the past few months to underscore the importance of small business owners’ top ask: reduce taxes.

Victory!

Ontario cuts small business tax rate to 2.2%!

Budget 2026 delivered a major and hard-fought victory for Ontario small business owners: the government will cut the small business tax rate from 3.2% to 2.2% effective July 1, 2026!

The measure will save approximately 375,000 small businesses up to $5,000 each year.

CFIB held over 50 meetings at Queen’s park, including with Finance Minister Peter Bethlenfalvy, to demonstrate the urgency of reducing the small business tax rate to MPPs. CFIB also collected over 11,000 petitions from small business owners across the province calling for the tax cut.

Finance Minister Bethlenfalvy even gave a shoutout to CFIB as the driving voice behind the reduction as part of his budget speech in the Ontario legislature, prompting the speech’s first standing ovation.

Curious about how much you might save? Check out our Ontario Tax Savings Calculator!

Victory!

Quebec cuts small business tax rate!

The Quebec government has announced it will immediately reduce the small business tax rate from 3.2% to 2.2%, bringing it in line with Ontario’s newly announced rate.

The move addresses one of CFIB members’ top asks for the Quebec government and is expected to deliver an estimated $630-million in tax relief over the next five years for approximately 75,000 small- and medium-sized businesses in the province.

“This is an important and necessary announcement and will have positive effects on the economy,” said Francois Vincent, CFIB’s vice-president for Quebec. “The measure sends a clear signal of support to Quebec’s entrepreneurs.”

While the announcement will help many business owners reinvest in their operations, Quebec remains the only province that limits the reduced small business rate for small businesses in the construction and service sectors that do not pay over 5,500 hours of paid work each year. CFIB will continue to fight to eliminate this rule so that all small businesses qualify for the small business tax rate.

More CFIB Tax Wins

Owner of manufacturing business reviewing information on tablet representing carbon tax rebate

Victory! Carbon Tax Rebate for Small Businesses Will be Tax-Free! (National)

Good news for small businesses: The federal government has announced that both past and future carbon tax rebates for small businesses will be tax-free, a move that removes taxes on over $3 billion in total rebates. Learn more about what this means for your business.

Read Announcement

Small Business Tax Reduction in Budget 2024-25 Provides Cost Relief for Newfoundland and Labrador Small Firms

The Canadian Federation of Independent Business (CFIB) is pleased the Newfoundland and Labrador government has listened to small businesses and provided some much-needed cost relief in Budget 2024-25 by reducing the small business tax rate from 3% to 2.5% starting January 1^st, 2024.

Read Media Release

Worker in safety gear setting up a ladder

CFIB Victory! PEI Small Businesses Get a Big Boost with $18 Million WCB Surplus

The Workers Compensation Board (WCB) of PEI is returning $18 million in surplus funds to eligible employers in December 2025. On top of that, the average 2026 assessment rate will reduce to $1.28, including a temporary $0.09 rebate to help keep costs down.

Learn More About the Details

Budget 2025-26 is Good News for Small Businesses, Delivers on Small Business Tax Cut (Nova Scotia)

The Canadian Federation of independent business (CFIB) is pleased that the Government of Nova Scotia has followed through on promised changes to the Small Business Tax Rate in Budget 2025-26 which will reduce the rate from 2.5% to 1.5% and increase the eligibility threshold from $500,000 of income to $700,000.

Read Media Release

Small business employee packing items into boxes

CFIB: $2 Billion WSIB Surplus Rebate a Big Win for Small Business (Ontario)

On behalf of our 38,000 business members in all sectors across the province, we thank Premier Ford and Minister Piccini for listening and acting on our recommendations to deliver another Workplace Safety and Insurance Board (WSIB) surplus rebate to Ontario’s small business owners and reduce the average premium rate.

Learn More About the Rebate

Small downtown main street with local shops in prairies

WCB Rebate a Welcome Boost - But Manitoba Small Businesses Need Long-Term Tax Relief

The Workers Compensation Board (WCB) announcement that it will issue $122 million in surplus rebates to employers is welcome news for small businesses navigating economic uncertainty.

Read Full Release

Small business owner and employee in her store

BC Budget Provides Long-Awaited Payroll Cost Relief for Small Businesses but Leaves Many Challenges Unaddressed

The BC government’s decision to finally increase the Employer Health Tax (EHT) payroll exemption threshold to $1M comes as welcome news for the province's economy, although concerns around the rising cost of doing business and ballooning debt remain.

Learn More About the Challenges

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