TAXES & ASSESMENT

Last Updated: July 2021

1 City of - Taxes & Assessment Mississauga • • Canada Taxes & Assessment This profile contains information on Mississauga’s financial management, property assessment and tax rates, business tax rates (HST), and a selected list of federal and provincial tax incentives.

Financial Management • Mississauga City Council prides itself on its enterprise approach • The City collects property taxes on behalf of the City of to running the City. Sound financial management has allowed the Mississauga, the Region of Peel, and for the Province of City to plan for the future while maintaining a very low debt Ontario for the two Boards of Education - Peel District burden. School Board and Dufferin-Peel Catholic District School Board. • Mississauga Council is dedicated to keeping tax increases as low as possible. • The City has a Development Charges Policy which operates on Property Assessment the philosophy that new development should pay for itself. Funds collected are placed in reserve to pay for capital The Municipal Property Assessment Corporation (MPAC) is improvements needed in the future. For decades developers responsible for assessing all property in Ontario. have included all servicing costs in the base price of land, eliminating the need for local improvement levies. • To establish a property’s assessed value, MPAC uses the Current Value Assessment (CVA) method. This method requires • Mississauga’s basic utilities are relatively new and have been MPAC to analyze property sales in the area and using this data designed to handle future development so that upgrading costs as a basis, the value of similar properties can be assessed. will be minimal. • For further information, visit: Municipal PropertyAssessment • As of 2020, Mississauga earned its 17th consecutive ‘AAA’ credit Corporation (MPAC), Halton-Peel Assessment Office, rating from Standard & Poor’s Rating Service. The rating is www.mpac. ca testimonial to the City’s exceptional liquidity levels, very low debt burden and its strong, diversified economy.

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Property Taxes

Consistently Lower Tax Rates Tax rates in Mississauga are consistently lower than most 2021 Tax Rates Ontario municipalities for many reasons. The most important reasons are: Property Type Tax Rate • No local improvement costs are chargeable to the owner/ Residential 0.803063% occupant of the real estate. Multi-residential 0.975722% Commercial 1.866130% • All costs of new servicing, road development and parkland have been absorbed by the developer as a condition of subdivision Office Building 1.866130% approval. Industrial 1.929865% Industrial - Large 1.929865% For more information and tax rates see M i ssi ssa uga Property Calculating PropertyTax Tax Information • The City of Mississauga determines your property tax based on the property value assessment provided by the Municipal Property Assessment Corporation, MPAC. Mississauga Property Taxes per Square Foot The City of Mississauga determines your property tax based • Property Type Tax per Sq.Ft. on the property value assessment provided by the Municipal Industrial - Standard (Less than 125,000 s q. ft.) $2.19 Property Assessment Corporation, MPAC. The City collects property taxes for the City of Mississauga, Region of Peel, Industrial - Large (Greater than 125,000 s q. ft.) $1.87 and the Province of Ontario (for education). Commercial - Office $3.77 *Includes municipal, regional and education tax components. • Annually, the City and Region set a budget for services and Source: BMA Municipal Study 2020 infrastructure. A tax rate is calculated to raise the funds identified in the budget on a city-wide basis. Property taxes fund approximately 50 to 60% of the City’s and Region’s budget. The Province sets the education tax rate for all properties. The residential education tax rate is the same province-wide.

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Industrial & Commercial Buildings - Tax Rates &Comparisons

• Cost estimates of property tax costs are given below. • These estimates provide a spread of the property tax values across municipalities within Ontario’s Golden Horseshoe Area.

2020 Industrial Tax Comparisons 2020 Commercial Tax Comparisons Municipality Tax Rates Total $ Municipality Tax Rates Total $ London 3.239391% $141,318 London 3.239391% $70,659 Guelph 3.061890% $135,532 Waterloo 2.713779% $61,093 Oshawa 3.210548% $131,107 Guelph 2.700881% $57,741 Whitby 2.842574% $127,072 Oshawa 2.550024% $52,529 Waterloo 3.054639% $122,186 Whitby 2.28634% $47,214 Burlington 2.094602% $94,737 Toronto 2.080186% $43,436 Oakville 2.068588% $90,506 Brampton 1.982804% $39,656 Brampton 2.242482% $89,699 Mississauga 1.866130% $38,098 Toronto 2.065346% $89,635 Burlington 1.616712% $33,109 Milton 1.988765% $87,054 Oakville 1.598590% $31,636 Mississauga 1.929865% $83,531 Vaughan 1.568665% $31,581 Vaughan 1.729497% $72,870 Richmond Hill 1.554774% $31,258 Richmond Hill 1.712362% $72,071 Markham 1.535972% $30,594 Markham 1.768585% $70,433 Milton 1.542981% $30,433

Source: Finance/Tax Department of respective municipalities. Source: Finance/Tax Department of respective municipalities. Note: Based on a $4 million assessed building. Note: Based on a $2 million assessed building.

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BusinessTaxes Federal & Provincial R&D TaxIncentives • KPMG’s Focus on Tax 2016 ranks Canada as the most tax Harmonized Sales Tax (HST) competitive country in the G7. G7 countries include Canada, France, Germany, Italy, Japan, the United Kingdom and the • As of July 1, 2010 Ontario has blended a 13% value-added United States. In addition to the G7 nations, Canada is also tax which combines the Provincial Sales Tax (PST) with ranked ahead of Australia, the Netherlands andMexico. the General Sales Tax (GST) to create the HST. • Combined federal and Ontario provincial corporate tax • The provincial portion of the HST will be 8% and the rates are currently 26.5%. Eligible deductions reduce the federal portion will be 5% for a combined HST of 13%. combined corporate tax rates for small businesses to 13.5% as of January 1, 2018. • Ontario provides relief on specific items that are subject to the • As of 2011, the Federal and Provincial Governments HST through a point-of-sale exemption. You are not required to eliminated the capital tax rate. pay the Ontario portion (8%) of the HST on items such as books, children’s clothing and footwear, children’s car seats • Ontario’s R&D tax credits are the most generous of the G7 and car booster seats, diapers, feminine hygiene products, countries. Combined with federal R&D programs, Ontario’s qualifying food and beverages and newspapers. R&D TaxProgram can reduce your after-tax cost for every $100 in R&D spending to between $61 and $37. Ontario has • For further information, visit the Ministry of Finance website. a 14.1% R&D competitive cost advantage relative to the United States. Tax Incentives • The Federal Government offers a 15% investment tax credit (ITC) for tax years that end after 2013 on scientific research and experimental development expenditures. For Canadian- • The Ontario Municipal Act expressly forbidsmunicipalities controlled private corporations (CCPCs) entitled to claim a 35% from offering business any bonus or financial incentive ITC on up to $3 million of qualifying expenditures, the ITC can such as tax subsidies, special land deals, loans or grants. offset 100% of the federal tax payable in the year or can be • The Ontario and Federal Governments offer a wide carried back 3 years or forward 20 years (dependent on the range of programs to assist business. These programs, rule that applies for the tax year in which the ITC is earned). which can be in the form of loans, grants or tax credits, include training, export financing, and research and • Tax incentive programs are subject to change. Details can be development. found at www.investinontario.com

• For further information, visit www.investinontario.com.

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Local Business Improvement Areas(BIAs)

• A Business Improvement Area (BIA) is a geographic area in a municipality. A BIA board of management is an organization set up to provide certain business promotion and improvement functions within that area. Source: Ministry of Municipal Affairs and Housing, 2010 Business Improvement Area Handbook

• There are 5 BIAs located in the City of Mississauga: Clarkson BIA; BIA; Malton BIA; BIA; and Streetsville BIA.

• All businesses within a designated BIA pay a levy based on the assessed value of their commercial property. This levy is collected by the City of Mississauga and turned over in full to the BIA, where the BIA board of management uses it to promote, beautify and benefit the area. Downtown Community Improvement Plan (CIP) This CIP allows for the City to consider the granting of incentives to attract office development to the Downtown Core. The incentives included in the CIP are:

• Tax Increment Equivalent Grant (TIEG)

• Development Processing Fees Rebate

• Municipally Funded Parking Program

• Municipal Property Acquisition and Disposition

Download the Downtown CIP here.

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Support Funding and Incentives

Commercialization & Business Development

Tax Incentives and Credits

• Accelerated Investment Incentive Up to 100% capital cost allowance

• Ontario Computer Animation & Special Effects Tax Credit Refundable tax credit of 18% of eligible Ontario labour expenditures

• Ontario Film & Television Tax Credit Refundable tax credit, generally 35% of eligible Ontario labour expenditures

• Ontario Interactive Digital Media Tax Credit Refundable tax credit of 40% for eligible labour, marketing and distribution expenditures

• Ontario Production Services Tax Credit Refundable tax credit of 21.5% of all qualifying production expenditures incurred in Ontario

• Ontario Small Business Deduction Reduces the corporate income tax rate from 3.5% to 3.2% on the first $500,000 of active business income

• Ontario Tax Credit for Manufacturing and Processing Tax credit to reduce the corporate income tax rate to 10%

• Ontario Tax Exemption for Commercialization A tax refund of the corporate income tax and corporate minimum tax your business paid in its first 10 taxation years

To view the full list of support, funding and incentives, click here.

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