Business Tax

There is no specific business tax for businesses operating in the City of St. John's.

• Commercial property owners pay commercial tax.
• Tourist establishments are expected to collect and remit accommodation tax.
• Commercial property owners are charged a Business Improvement Area levy, and they may pass on the levy to tenants through monthly rent payments or billed separately throughout the year as part of the tax cycle.

See our current and historical property tax rates for residential and commercial properties.

Why doesn't the City charge business tax?

On January 1, 2013, the City of St. John's streamlined its commercial tax system creating one tax for commercial purposes: the commercial realty tax. 

Are home-based businesses taxed?

If your business occupies less than 25% of the area of your home, then you will not pay any commercial realty tax. You will pay 100% residential realty tax. If your business uses more than 25% of the area of your home, it will be considered mixed use property and charged an appropriate percentage of residential realty and commercial realty taxes. A water tax is also applied.

What if I have a vacancy in my commercial property?

The Commercial Property Tax By-law outlines when a property owner may make a claim for property tax allowance. Vacancy relief can be claimed under this allowance. Vacancy relief is based on the leasable area of your property. For example, if an entire property is vacant and being actively marketed, you could claim a vacancy allowance for 50% of the total commercial realty tax.

Claim an Allowance

Can my business be exempt from any taxes?

Section 8 of the City of St. John’s Municipal Taxation Act outlines the properties that are or may be exempt from property taxes. For example, registered charities that own their own building are exempt from commercial realty tax and only pay water tax on their property. Commercial property owners that lease to a registered charity can claim a tax allowance for the space occupied by the charity. Additional exemptions are available through the commercial tax allowance and include daycares and seasonal businesses.

It should be noted that mobile vendors, e.g., “fish-and-chip” vans and tables operated at a flea market, are not assessed and therefore do not pay taxes. However, they do pay permit fees.

Where can I get information about assessments and taxation?

Operating a Business in the City of St. John's: A Guide to Municipal Regulations provides a general overview of the regulations, permits, processes, and taxes as they apply to businesses in St. John's.

What about other taxes?

In addition to municipal taxes, there are various business-related taxes, credits and incentives at the federal and provincial level. The Government of Newfoundland and Labrador administers a number of taxes and offers several tax credits, incentives and benefit programs to business:

• Taxation
• Tax Credits, Incentives and Benefits 
• Financing and Incentives: The Department of Industry, Energy and Technology

For federal government taxation policy and tax related business information regarding such topics as corporate income tax for small business, GST/HST, payroll deductions, sole proprietorships and partnerships, and tax credits please visit the Canada Revenue Agency.