Toronto and Greater Toronto Area businesses operate under Ontario's provincial tax rules, plus a small set of city-level taxes that mostly target property, not general business income. RN Canada provides bookkeeping, T2 corporate tax filing, HST compliance, payroll and EHT support, and fractional CFO advisory to Toronto founders and owner-managed businesses — delivered remotely from our Edmonton head office. We do not have a Toronto office, and we are upfront about it.
Toronto's 2026 tax setup: provincial rules, plus city layers
A Toronto business's core tax obligations are set at the federal and Ontario level, identical to any other Ontario city — see our Ontario page for the full provincial picture. Toronto adds a handful of municipal taxes on top, most property-focused rather than general business taxes.
Corporate income tax and HST are Ontario-wide, not Toronto-specific. A Toronto corporation pays the same 11.5% general Ontario rate (26.5% combined with the federal 15% general rate) as anywhere else in the province, and the same falling small-business rate — Ontario's portion drops from 3.2% to 2.2% on July 1, 2026, for an 11.2% combined small-business rate once in effect. Toronto businesses charge the same 13% HST as the rest of Ontario, recoverable on inputs through input tax credits, and file the same federal T2 — no separate Toronto or Ontario corporate return, unlike Alberta's AT1.
Employer Health Tax also applies province-wide. A Toronto employer's Ontario payroll gets the same $1,000,000 exemption, the same top rate of 1.95% above that, and the same loss of the exemption once annual Ontario payroll passes $5 million — there is no city-level EHT. See our Ontario Employer Health Tax guide.
Where Toronto genuinely differs is a set of municipal taxes, most relevant to businesses holding Toronto real estate rather than day-to-day operating income:
- Vacant Home Tax — 3% of a residential property's Current Value Assessment, on Toronto homes unoccupied more than six months a year. Relevant to a business or holding company owning Toronto residential property; every owner must file an annual occupancy declaration.
- Municipal Land Transfer Tax — charged on top of Ontario's provincial land transfer tax on Toronto real estate, with graduated rates rising for higher-value residential purchases from April 1, 2026.
- Municipal Non-Resident Speculation Tax — a 10% tax on residential purchases by non-resident buyers in Toronto, in effect since January 1, 2025, layered on top of Ontario's own non-resident speculation tax.
None of these three replace or reduce the Ontario corporate tax, HST, or EHT obligations above — they apply specifically to Toronto residential property transactions, mainly mattering to a business when real estate, rather than operating income, is part of the picture.
What RN Canada does for Toronto businesses
We cover the full finance stack, delivered entirely online:
- Bookkeeping and tax filing — month-end books, HST, payroll, and T2 corporate returns. See bookkeeping & tax filing.
- Part-time / fractional CFO — forecasting, financial modelling, financing readiness, and management reporting. See part-time CFO & management accountant.
- Reporting, valuation, internal audit, and performance management. See all services.
For Ontario-wide detail relevant to a Toronto business, read our Ontario corporate tax guide, the Ontario EHT guide, and the guide to incorporating a business in Ontario. Model your numbers with the corporate tax calculator and the employer payroll cost calculator; if you compare Ontario to Alberta or BC operations, see our Alberta vs. BC business tax comparison.
Who we serve in Toronto and the GTA
Our Toronto-area clients are typically incorporated owner-managed businesses and founders past the start-up stage — roughly $500K to $20M in revenue — across professional corporations, tech and SaaS, retail and e-commerce, trades and construction, and newcomer-founded companies. The firm is led by founder Ozgur Duymaz, Ph.D. in accounting and finance, CPA (Canada), ACCA (UK), and CMA (US), bringing depth in Canadian tax, IFRS, governance, and valuation to every engagement regardless of location.
How we work with Toronto (honest note on location)
To be clear: RN Canada does not have a Toronto office, address, or local staff. We serve Toronto and GTA businesses remotely from our Edmonton head office (10804 181 St NW #201, T5S 1K4; +1 (236) 514-5541). Engagements run through cloud accounting software and scheduled video meetings — Ontario corporate tax, HST, and payroll rules are federally documented and consistent regardless of city, so a remote Edmonton-based engagement handles Toronto compliance with the same rigour as a locally based one.
Ready to set up bookkeeping, corporate tax, HST, or fractional CFO support for your Toronto or GTA business? Contact RN Canada.
Frequently asked questions
Does RN Canada have an office in Toronto? No. RN Canada does not have a Toronto office, address, or local staff. We serve Toronto and Greater Toronto Area businesses remotely from our Edmonton head office, using cloud accounting software and video meetings. Ontario and federal tax rules apply the same whether your accountant is in Toronto or elsewhere in Canada.
What corporate tax rate does a Toronto business pay in 2026? A Toronto corporation pays Ontario's provincial rates, not a separate city rate: 11.5% general Ontario tax combined with the federal 15% general rate for 26.5% above the small business limit, falling to an 11.2% combined small-business rate once Ontario's rate cut takes effect on July 1, 2026. There is no Toronto-specific corporate income tax.
What is Toronto's Vacant Home Tax? A tax on Toronto residential properties left unoccupied for more than six months in a year, at 3% of the property's Current Value Assessment. It targets housing supply, not commercial operations, but can affect a business or holding company that owns Toronto residential real estate — every owner must file an annual declaration.
Does the Municipal Land Transfer Tax apply to a business buying property in Toronto? Yes, for Toronto residential purchases. Toronto charges its own Municipal Land Transfer Tax on top of Ontario's provincial land transfer tax, with graduated rates that rise for higher-value residential purchases from April 1, 2026. Budget for both layers before closing.
How does HST and the Employer Health Tax work for a Toronto business? The same as anywhere in Ontario. A Toronto business charges 13% HST and recovers HST paid on inputs via input tax credits. The Ontario EHT exempts the first $1,000,000 of annual Ontario payroll, with rates up to 1.95% above that and no exemption past $5 million — none of this is Toronto-specific.
Frequently asked questions
No. RN Canada does not have a Toronto office, address, or local staff. We serve Toronto and Greater Toronto Area businesses remotely from our Edmonton head office, using cloud accounting software and video meetings. Ontario and federal tax rules apply the same whether your accountant is in Toronto or elsewhere in Canada.
A Toronto corporation pays Ontario's provincial rates, not a separate city rate: 11.5% general Ontario tax combined with the federal 15% general rate for 26.5% above the small business limit, falling to an 11.2% combined small-business rate once Ontario's rate cut takes effect on July 1, 2026. There is no Toronto-specific corporate income tax.
A tax on Toronto residential properties left unoccupied for more than six months in a year, at 3% of the property's Current Value Assessment. It targets housing supply, not commercial operations, but can affect a business or holding company that owns Toronto residential real estate — every owner must file an annual declaration.
Yes, for Toronto residential purchases. Toronto charges its own Municipal Land Transfer Tax on top of Ontario's provincial land transfer tax, with graduated rates that rise for higher-value residential purchases from April 1, 2026. Budget for both layers before closing.
The same as anywhere in Ontario. A Toronto business charges 13% HST and recovers HST paid on inputs via input tax credits. The Ontario EHT exempts the first $1,000,000 of annual Ontario payroll, with rates up to 1.95% above that and no exemption past $5 million — none of this is Toronto-specific.