News

The Toronto Association of Business Improvement Areas (TABIA) welcomes the Province of Ontario’s commitment to reducing the small business corporate income tax rate from 3.2% to 2.2%, as outlined in the 2026 Budget. This measure represents meaningful and much-needed relief for small and medium-sized enterprises (SMEs) across Toronto.

Main street businesses continue to face sustained pressure from rising operating costs driven by inflation, alongside more cautious consumer spending. In this context, reducing the tax burden is a practical and timely step that will help businesses stabilize, reinvest, and remain viable in an increasingly challenging economic environment.

The proposed tax reduction, which will deliver up to $5,000 in annual savings, will have a tangible impact for many small businesses. When combined with recent actions at the municipal level, including the City of Toronto’s increase to the Small Business Property Tax Subclass relief, it signals a growing recognition across all levels of government that SMEs require cost relief to survive and grow.

Small businesses are the foundation of Toronto’s neighbourhoods. They are essential drivers of local employment, economic resilience, and community vitality.

As the founders of Digital Main Street, TABIA also supports broader provincial measures aimed at improving business competitiveness, including accelerated capital cost write-offs and investments in entrepreneurship, digital adoption, and market expansion. Together, these initiatives help create the conditions for small businesses to invest, innovate, and scale, particularly as our economy looks to expand to new markets and leverage new opportunities offered through AI. 

We are pleased the provincial government is working to ensure Toronto’s small businesses have the support they need to navigate current economic pressures and contribute to a strong and competitive economy.