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.
Business Taxes & Assessments
Business taxes help support the growth and development of St. John’s by funding essential services, infrastructure and community initiatives that benefit residents and businesses alike.
There is no separate business tax for operating a business in the city. Instead, commercial property owners pay a commercial property tax based on the assessed value of their property.
Click on the icons below to learn more about commercial taxation rates and other taxes that may apply to your business.
Frequently Asked Questions
Click on the questions below to find answers to these commonly asked questions.
Are home-based businesses taxed?
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.
To apply for the vacancy allowance, fill out an application form.
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 license 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.
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.
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