Qualifying for Farm Tax Incentive Programs
As the owner of a farm property, you may be eligible for a reduction in the amount of property taxes you pay through one of these incentive programs.
Farm property class tax rate program
If you own a farm and you believe it could qualify for the Farm Property Class Tax Rate Program (also known as the "Farm Tax Program"), you must submit an application to Agricorp. For more information about the program and the eligibility requirements, please visit agricorp.com.
If you qualify, we will place your farmland and associated outbuildings in the farm property tax class.
Your municipality applies the farm property tax class rate to your property tax bill and you will be taxed up to 25 per cent of your municipality's residential property tax rate.
Small-scale on-farm business subclasses
Effective January 2022, the Government of Ontario introduced a second optional subclass for both the industrial and commercial subclasses to provide further support to small-scale on-farm businesses. The new legislation allows municipalities to increase the threshold of eligible assessment to which the reduced tax rate applies from $50,000 to $100,000.
To be eligible for the small-scale on-farm business subclass:
- Your property must be assessed as farmland and placed in the Farm Property Tax Class Rate Program by Agricorp.
- The council of a single or upper-tier municipality must pass a bylaw for both subclasses or they can pass a bylaw for the industrial subclass alone. The commercial subclass is only available if council opts for the industrial subclass.
- At least 51% of your facility must be used to sell, process or manufacture something produced on your farmland.
- It does not apply to properties where the total assessed value of the land used for the on-farm business is $1,000,000 or more.
To learn more, please read our FAQ.
Farm forestry exemption
In an effort to protect wooded areas, farmers with farm property or farm property holdings with wooded areas, may qualify for the Farm Forestry Exemption (FFE).
If you qualify, the tax exemption applies to one acre of forested land for every ten acres of farmland. It cannot exceed 20 acres in any one municipality.
To be eligible for the farm forestry tax exemption:
- Your property must be valued as farmland and have some forested or woodland areas.
- You cannot be enrolled under the Managed Forest Tax Incentive Program or the Conservation Land Tax Incentive Program.
- We will automatically apply the exemption if your property qualifies.