TABIA Welcomes Increase to Small Business Property Tax Discount
Toronto, ON – February 2, 2026 – The Toronto Association of Business Improvement Areas (TABIA) is welcoming the City of Toronto’s increase to the Small Business Property Tax Subclass discount from 15% to 20% on the municipal portion of commercial property taxes, proposed for the 2026 Budget. If approved by City Council, the change would provide an additional 5% tax reduction for more than 28,000 eligible small business properties across Toronto. Many of these businesses are located within Business Improvement Areas (BIAs).
“This proposed increase is meaningful, targeted relief for the small, local businesses that form the backbone of Toronto’s neighbourhood economy,” said John Kiru, CEO of TABIA. “At a time when small businesses continue to face rising costs and economic uncertainty, this deeper discount shows that the City understands the pressures on main-street businesses and is looking for ways to help.”
The proposal does not expand eligibility for the Small Business Property Tax Subclass. Instead, it strengthens the benefit for businesses that already qualify, delivering deeper relief for the businesses that need it the most. The tax reduction is applied automatically and appears directly on the commercial property tax bill.
This proposal builds on years of advocacy with both the Province of Ontario and the City of Toronto. Ontario’s decision to allow municipalities to create tailored small business tax subclasses made this program possible, and Toronto City Council’s continued support, with this proposed increase, demonstrates strong buy-in.
While TABIA applauds the proposed increase, more work remains to make Toronto a city where small businesses thrive.
“This change won’t solve every challenge facing small businesses,” Kiru added, “but it’s an important step. We will continue working with City Finance and Council to review and expand the current definition of the Small Business Tax Subclass so that more deserving small businesses can be included.”
The proposed budget will now proceed to City Council for debate and approval in the coming weeks.
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