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Taxes & Development Charges

Town Council has chosen to keep rates competitive.

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Taxes

Property Tax

Whitby collects property taxes on behalf of the Town and the Region of Durham and education taxes on behalf of the Province. Whitby has lower Commercial Tax Rates compared to neighbours such as Oshawa, Toronto, Cambridge, Kitchener, Waterloo, and Hamilton.

Whitby's Property Tax Rates (2016)

Property Class Tax Rate
Commercial 2.739308%
Industrial 3.999524%
Residential 1.294082%
Multi-Residential 2.252502%

Whitby's industrial tax rates are competitive with other Durham Region communities. Although Durham's Industrial Tax rates are higher than average, when tax dollars per square foot are compared, Durham's actual tax dollars are similar to other municipalities as Durham's average assessments are materially lower.   For information on how the Industrial and Commercial property tax is computed, please click here.

Corporate Income Taxes

Level of Government  Basic Rate
(2016)
Small Business Rate* (2016)
Federal  15%  10.5%
Provincial 11.5%  4.5%
Combined 26.5%  15%
*: After small business deduction

Source: Ontario Ministry of Finance and Canada Revenue Agency

Ontario's corporate income tax rate (provincial and federal combined) is lower than any US state, Japan or France. Capital taxes were eliminated on July 1, 2010.

Payroll Taxes

Ontario's Employer Payroll Tax rates (pension, health and unemployment in total) are the lowest of all G7 countries. Visit the Ministry of Finance's Taxes and Charges page for more information.

Harmonized Sales Tax (HST)

The 13% Harmonized Sales Tax (HST) was introduced in Ontario on July 1, 2010. The HST replaces the federal goods and services tax (GST) and the provincial sales tax (PST). The HST is advantageous to businesses, as it provides tax credits for sales tax paid on many inputs and capital investments, reduces tax compliance costs and taxes that would otherwise have been included in supplier prices.

Land Transfer Tax

Ontario has a land transfer tax between 0.5% and 2% depending on the cost and use of the property. Tax on commercial and industrial property does not exceed 1.5%.

Development Charges

Development charges are levied by the Town of Whitby and the Region of Durham to cover the costs of essential services including: fire, roads, storm water management, water supply, sanitary sewage, transit, and government services. Education Development charges are not levied on non-residential development in the Town of Whitby. Development Charges are calculated based on the gross floor area (GFA) of a development, unless otherwise indicated.

More information on development charges is available at the Town of Whitby's website, as well as in the Town's Development Charges Pamphlet.

Non-Residential Development Charges (DCs):

Town of Whitby Non-Residential Development Charges (as of April 1, 2017)

  • Retail Commercial Developments: $92.63 per square metre (Approximately $8.61 per square foot)
    • Includes Sale, rental, or service uses, and connected warehousing or storage
    • Includes restaurants, hotel/motel uses, self-storage, banks and other uses as specified in Section 1 (42) of DC By-Law No. 7255-17
  • Other Non-Residential Developments: $48.66 per square metre (Approximately $4.52 per square foot)
    • Includes Office, medical office, industrial, and institutional uses, as per Section 1 (35) of DC By-Law No. 7255-17

Region of Durham Non-Residential Development Charges (as of July 1, 2016)

  • Commercial Use Developments: $13.55 per square foot
  • Industrial Use Developments: $10.98 per square foot
  • Institutional Use Developments: $8.72 per square foot

Development Charge Exemptions and Incentives

Certain developments may have exemptions or discounts from the stated Development Charges. The following table is a summary of reduced rates for the Town of Whitby portion of development charges, based on different development scenarios and time frames. See further down for details.

Summary of Time-Limited Reduced Rates for Town of Whitby Development Charges:

 Development April 1, 2017 to March 31, 2019 April 1, 2019 to March 31, 2021 April 1, 2021 to end of By-Law term
Existing commercial expansion in Downtown Whitby or Brooklin Community Improvement Areas (CIPAs), lesser of 50% of existing gross floor area (GFA) or 5,000 square feet 0%
(exempt)
0%
(exempt)
0%
(exempt)
New office development exceeding 2,323 square metres (25,000 square feet)
Note: Regional DCs are charged at a reduced rate of 75% until August 31, 2017. See below for details.
50%
75% 100% 
New office in C3-DT and C1-VB zones, exceeding 90 square metres (968 square feet) 50% 75% 100%
New industrial development exceeding 2,323 square metres (25,000 square feet) 50% 75% 100%
High density residential development in Downtown Whitby or Brooklin CIPAs 50% 100% 100%
Partial Exemptions to Region of Durham Development Charges
  • The regional commercial development charge for office buildings greater than 25,000 sq. ft. is discounted by 25% for the water supply, sanitary sewerage, and roads components. This discount will be eliminated on July 1, 2017, as per Durham Regional By-Law #16-2013. 
More information on the Region of Durham's development charges is available at the Region of Durham website

Partial Exemptions to Town of Whitby Development Charges (Section 14 of DC By-Law No. 7255-17; emphasis added) 
  1. Where an existing retail commercial or office building located within the Downtown Community Improvement Plan Areas as defined in Schedule "D" -- Map 1 and Map 2 to this by-law is enlarged by no greater than fifty percent (50%) of the presently existing gross floor area or 5,000 square feet, whichever is less, such enlargement is exempt from the payment of development charges. 
  2. Where the gross floor area of a new office development exceeds 2,323 square metres (25,000 square feet), the total development charges shall be either a) fifty percent (50%) of the amount that would otherwise be payable from April 1, 2017 to March 31, 2019; b) seventy five percent (75%) of the amount that would otherwise be payable from April 1, 2019 to March 31, 2021; or c) one hundred percent (100%) of the amount that would otherwise be payable from April 1, 2021 to the end of the by-law term. 
  3. Where the gross floor area of a new office (not including a medical office) development located in the C3-DT and C1-VB commercial zones, as defined in the Town's Zoning By-law, as amended, exceeds 90 square metres (968 square feet), the total development charges shall be either a) fifty percent (50%) of the amount that would otherwise be payable from April 1, 2017 to March 31, 2019; b) seventy five percent (75%) of the amount that would otherwise be payable from April 1, 2019 to March 31, 2021; or c) one hundred percent (100%) of the amount that would otherwise be payable from April 1, 2021 to the end of the by-law term. 
  4. Where the gross floor area of a new industrial use development exceeds 2,323 square metres (25,000 square feet), the total development charges shall be either a) fifty percent (50%) of the amount that would otherwise be payable from April 1, 2017 to March 31, 2019; b) seventy five percent (75%) of the amount that would otherwise be payable from April 1, 2019 to March 31, 2021; or c) one hundred percent (100%) of the amount that would otherwise be payable from April 1, 2021 to the end of the by-law term.
  5. Where high density residential development is located within the Downtown Community Improvement Plan Areas as defined in Schedule "D" -- Map 1 and Map 2 to this by-law, the total development charges shall be either a) fifty percent (50%) of the amount that would otherwise be payable from April 1, 2017 to March 31, 2019; or b) one hundred percent (100%) of the amount that would otherwise be payable from April 1, 2019 to the end of the by-law. 
For more information, see the Town's Development Charges website.