Small business owners in Atlantic Canada and Saskatchewan are pressing municipal councils to stop charging higher property tax rates on commercial properties than on residential properties of equal value, as cities and towns begin shaping their 2027 budgets. The Canadian Federation of Independent Business (CFIB) has launched petitions in Newfoundland and Labrador, New Brunswick and Prince Edward Island, while also writing directly to Saskatoon’s mayor and city council over a separate tax review.
The campaigns build on CFIB’s Atlantic Canada Commercial Property Tax Report, released in September, which examined 80 municipalities across the four Atlantic provinces. The report found that in all but four of those municipalities, businesses are taxed at a higher rate than homes of the same assessed value.
Smallest Firms Feel the Biggest Squeeze
According to CFIB’s data, the burden falls hardest on the smallest companies. Among businesses with fewer than five employees, 31% say property tax eats up more than 10% of their operating costs, and 40% say it has had a significant negative impact on profitability. Of those businesses negatively affected, 21% say they have delayed or cancelled an investment, and 18% have cut staff or reduced employee hours.
CFIB also points to a communication gap between local businesses and the governments that tax them: 73% of Atlantic small business owners surveyed disagree that their municipality understands how property taxes affect their operations.
“Same property value, but a much bigger tax bill. That’s the reality for small businesses across Newfoundland and Labrador,” said Jonathan Galgay, CFIB’s Director of Legislative Affairs for the province. In New Brunswick, CFIB’s Atlantic Vice-president Louis-Philippe Gauthier made a similar point: “Same property value, but a much bigger tax bill. That’s the reality for small businesses across New Brunswick.” On Prince Edward Island, Atlantic Director Frédéric Gionet framed it as business owners facing “a bigger tax bill simply because you’re a business.”
In each province, CFIB is calling on municipalities to adopt a five-year plan to reduce and ultimately eliminate higher commercial tax rates, and to publicly report how the property-tax burden is split between residential and commercial property classes. The organization is also urging provincial governments in Newfoundland and Labrador, New Brunswick and PEI to ensure their own property-tax legislation treats all property classes equally. Galgay said councils “don’t have to collect less to fix this. They just need to share the load fairly, and commit to a clear, five-year path to equal rates.”
Saskatoon’s Tax Ratio Under Review
In Saskatchewan, CFIB is taking a defensive position rather than pushing for change. Saskatoon is currently consulting the public on its property tax policy, and CFIB — representing more than 800 small business members in the city — is urging council to maintain the existing commercial-to-residential tax ratio rather than shift more of the burden onto businesses.
According to CFIB, Saskatoon businesses already pay 71% more in property tax than residential owners on properties of equal assessed value, reflecting a commercial-to-residential ratio of 1.71:1. While non-residential properties make up about one-fifth of the city’s total assessment base, they generate nearly one-third of municipal property tax revenue.
“Small businesses already carry a disproportionate share of Saskatoon’s property tax burden,” said Brianna Solberg, CFIB’s Director for the Prairies and Northern Canada. She argued that council “should be looking for ways to strengthen the city’s business environment, not make it more expensive to operate, invest and create jobs.”
Commercial vs. Residential Property Tax Burden
Broader Economic Pressures Cited
CFIB frames the Saskatoon request against what it calls an “entrepreneurial drought” nationally, with more businesses closing than opening, and cites survey data showing 55% of small business owners say they would not recommend starting a business right now. The organization argues property taxes are especially difficult for firms because they are “profit-insensitive” — owed in full regardless of whether a business had a strong or weak year — leaving less room for hiring, equipment investment or expansion.
In its letter to Saskatoon council, CFIB asked the city to assess the economic impacts of any proposed changes to tax policy, benchmark its structure against other municipalities, and exhaust spending efficiencies before raising the tax burden on any group. Solberg said council “should protect the conditions that make Saskatoon a competitive place to do business,” while acknowledging that residential property owners also face affordability pressures and that public consultation is a legitimate part of the process.
Across both regions, the common thread in CFIB’s messaging is that commercial property owners are being asked to cover a disproportionate share of municipal revenue relative to their share of assessed property value — a structure the organization says needs either a phased correction, in Atlantic Canada, or preservation of the status quo, in Saskatoon, depending on which direction local policy is heading.
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