News Release: TABIA Welcomes Provincial Tax Relief for Small Businesses in the 2026 Budget
March 27, 2026
Toronto, ON – The Toronto Association of Business Improvement Areas (TABIA) welcomes the Ontario government’s announcement of a significant reduction to the small business corporate income tax rate, calling it a timely and meaningful step to support main street businesses across Toronto.
As outlined in the 2026 Ontario Budget, the proposed tax cut, amounting to more than a 30 per cent reduction, will provide up to $5,000 in annual savings for small businesses. TABIA says this relief comes at a critical moment.
“On the ground, what we’re seeing is that many small businesses are still operating on very thin margins,” said John Kiru, CEO of TABIA. “Costs for rent, food, labour, and insurance have all gone up, while at the same time, customers are being more cautious about how they spend.”
Kiru pointed to independent restaurants as a clear example of the pressures facing local businesses.
“A neighbourhood restaurant is paying significantly more for ingredients than they were just a couple of years ago, while also navigating higher wages and utilities,” he said. “At the same time, people are spending less when they dine out. A tax reduction like this isn’t just helpful, it can be the difference between staying open and closing the doors.”
TABIA emphasized that the province’s action, combined with recent measures by the City of Toronto to enhance the small business property tax subclass relief, reflects a growing recognition across governments on the need to reduce the cost burden on small businesses.
“This sends an important signal that governments are recognizing the reality small businesses are facing right now,” Kiru added. “Cost relief is essential if we want our main streets to remain vibrant and continue contributing to local economies.”
In addition to the tax reduction, TABIA also supports complementary measures in the provincial budget aimed at improving business competitiveness, including accelerated write-offs for capital investments and expanded support for entrepreneurship, digital adoption, and market growth.
“Small businesses are the foundation of our neighbourhoods,” said Kiru. “Giving them the tools and financial breathing room to survive and grow is critical, not just for business owners, but for the health of our communities and the broader economy.”
About TABIA
The Toronto Association of Business Improvement Areas (TABIA) is a non-profit umbrella organization working with the 85 Business Improvement Areas within the City of Toronto, which in turn represent more than 90,000 business and property owners.
Media Contacts:
John Kiru, CEO of TABIA
(416) 889-4111