Property Taxes

Tax Rate Reduction

Toronto Helps Businesses


As part of its overall strategy to enhance Toronto's business climate, the City continues to reduce its tax rates for commercial, industrial and multi-residential properties to an approved target of 2.5 times that of the residential tax rate. The City expects to reach this targeted tax ratio for all other non-residential properties by 2023.

More information on the City's Enhancing Toronto's Business Climate Strategy


Business Education Tax Rates


In 2007, the Ontario government introduced a lower education tax rate for newly constructed commercial and industrial buildings in municipalities (like Toronto) where the Provincial education tax rate remains above the provincial average. 

Please visit the Ontario Government web page to determine if your project qualifies for this tax reduction.

Council continues to accelerate tax rate reductions for properties that are included in the "Residual Commercial" tax class.

"Commercial General" Tax Class

This tax class includes shopping centres, large office buildings, parking lots, vacant land and large sports facilities based on the property's classification as determined by the Municipal Property Assessment Corporation (MPAC).

 

"Residual Commercial" Tax Class

This tax class includes all other commercial property types that are not specifically included in the "Commercial General" tax class as noted above.

For properties in the Residual Commercial tax class, a lower tax rate applies to the first million dollars of a property's assessment (Band 1). The portion of the assessment above one million dollars is taxed at the "Commercial General" tax class rate (Band 2). If your property is in the "Residual Commercial" tax class, you will see the "Band 1" and/or "Band 2" on your tax bill under the Tax Class column.

 



 


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