For Ontario farmland owners, navigating property taxes can be complex—but the Farm Property Class Tax Rate Program offers meaningful relief. This program provides a reduced tax rate for eligible farmland, helping farmers reinvest in their operations while supporting agricultural productivity across the province.
If you’ve recently purchased farmland, changed ownership, or simply want to ensure you’re making the most of available tax relief, this article will walk you through everything you need to know about the program — eligibility, exemptions, how to apply, and how your accountant can support you.
The Farm Property Class Tax Rate Program is one way the Government of Ontario supports the agricultural sector. It provides eligible farmland owners with a significant tax reduction—no more than 25% of their municipality’s residential property tax rate. This savings helps farmers lower operating costs and reinvest in their business. The reduced tax rate applies only to the farmland portion of a property — not to residences or buildings used for non-farming purposes.
The program is administered in partnership by:
There are no direct payments or rebates issued. If approved, the lower tax rate is automatically reflected on your annual property tax bill.
To qualify for the reduced farm property tax rate, all of the following conditions must be met:
If any of these requirements are not fully met, there may still be an opportunity to qualify under an exemption category, which is addressed further below.
Agricorp has made the application process faster and easier by offering an online system that walks you through each step. There’s no paperwork or mailing required, and applications are submitted instantly for quicker processing.
To complete your application, you will need:
If you or your tenant does not qualify for an FBR number due to specific circumstances, you may still be eligible through an exemption—the next section covers details on exemptions.
Visit agricorp.com/farmtax to begin your application.
You only need to apply once, unless there is a change in ownership or an exemption expires. Common changes that require a new application include:
To ensure your reduced tax rate continues uninterrupted, it is best to apply as soon as any change occurs.
Please note: pay your FBR invoice by March 1 each year to keep your registration active. Late payments could impact your eligibility.
If you do not meet all the standard eligibility criteria, you may qualify for an exemption. Some common exemption types include:
Each exemption has specific criteria and expiry dates, so it is important to review your situation and reapply as needed.
If you are unsure whether your farmland qualifies, or if you have recently made ownership or operational changes, it is time to review your eligibility. Speak with your accountant to ensure you are taking full advantage of the Farm Property Class Tax Rate Program.
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This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.
GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of over 30 provides audits and reviews of financial statements, compilations of financial information, and corporate tax returns. We provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.
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