{"id":2252,"date":"2026-01-21T15:10:16","date_gmt":"2026-01-21T15:10:16","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ca\/post\/montreal-budget-2026-non-residential-tax-hike-puts-pressure-on-business-margins\/"},"modified":"2026-07-26T17:03:44","modified_gmt":"2026-07-26T15:03:44","slug":"montreal-budget-2026-non-residential-tax-hike-puts-pressure-on-business-margins","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/montreal-budget-2026-non-residential-tax-hike-puts-pressure-on-business-margins\/","title":{"rendered":"Montreal Budget 2026: Non-Residential Tax Hike Puts Pressure on Business Margins"},"content":{"rendered":"<p>As the 2026 Montreal budget introduces a new wave of fiscal pressure on the business community, Leyton is reinforcing its commitment to helping local innovators protect their margins. <\/p>\n<p>While municipal costs are rising, the synchronization of federal tax credits and provincial incentives remains the most effective tool for maintaining a competitive edge.<\/p>\n<p>The budget for 2026, tabled this week by Mayor Soraya Martinez Ferrada, totals <strong>$7.67 billion, a<\/strong> <strong>5.4% increase over last year<\/strong>. Central to this plan is a significant shift in the tax burden: an average<strong> 3.8% increase for residential property taxes<\/strong> and a<strong> 3.4% increase for the non-residential sector<\/strong>. <\/p>\n<p>Addressing the city&#8217;s financial constraints, the Mayor noted the necessity of this &#8220;rigorous&#8221; approach:<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>&#8220;Let\u2019s be honest, the city\u2019s credit card limit was pretty much exceeded,&#8221; stated <strong>Martinez Ferrada<\/strong> during the presentation.<\/p>\n<\/blockquote>\n<p>While the city targets $79 million in savings and a reduction of 1,000 employees, businesses, particularly in boroughs like <strong>Verdun (+5.4%)<\/strong>, <strong>Rivi\u00e8re-des-Prairies\u2013Pointe-aux-Trembles (+5.6%)<\/strong>, and <strong>L\u2019\u00cele-Bizard\u2013Sainte-Genevi\u00e8ve (+6.3%)<\/strong> are seeing their fixed costs climb well beyond the 2026 inflation forecast of 2.1%.<\/p>\n<h2 class=\"wp-block-heading\">Converting Fiscal Challenges into Innovation Funding<\/h2>\n<p>At Leyton, we view this municipal restructuring not just as a cost increase, but as a catalyst for firms to optimize their broader tax strategy. <\/p>\n<p>To offset the <strong>$390 million jump<\/strong> in city spending, Montreal businesses should prioritize three critical pillars of innovation funding:<\/p>\n<ul>\n<li><strong>The New $6M SR&amp;ED Threshold:<\/strong> The federal government\u2019s doubling of the expenditure limit for the <strong><a href=\"https:\/\/leyton.com\/ca\/en\/tax-credits\/sred-scientific-research-experimental-development\/\">Scientific Research and Experimental Development (SR&amp;ED) program<\/a><\/strong> allows CCPCs to claim a 35% refundable credit on up to <strong>$6 million<\/strong> in expenses. For many Montreal SMEs, a maximized claim can yield a <strong>$2.1 million cash refund<\/strong>, effectively neutralizing the impact of property tax hikes.<\/li>\n<li><strong>Restored Capital Expenditure Credits:<\/strong> For the first time since 2014, machinery and equipment used for R&amp;D (acquired after Dec 16, 2024) are once again eligible for tax credits. This allows manufacturers to convert their 2026 infrastructure investments into immediate cash flow.<\/li>\n<li><strong>Clean Economy &amp; Green Revitalization:<\/strong> With <strong>$72 million<\/strong> allocated by the city for soil decontamination in the East end and a <strong>$25 million revitalization fund<\/strong>, companies in construction and environment have a unique window to pair municipal grants with the <strong>30% Clean Technology ITC<\/strong>.<\/li>\n<\/ul>\n<p>The 2026 Montreal budget highlights a city in transition, investing in debt service, public security and a 20% increase in water network repairs.<\/p>\n<p>By leveraging Leyton&#8217;s expertise in tax credits and specialized incentives, Montreal businesses can ensure that their innovation roadmap remains unfunded by municipal debt and fueled by their own discoveries.<\/p>\n<p>Contact one of our experts today to get a free consultation for your business!&nbsp;<\/p>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h3>Sources<\/h3>\n<ul>\n<li><strong><a href=\"https:\/\/ici.radio-canada.ca\/nouvelle\/2220006\/montreal-budget-taxes-martinez-ferrada-2026?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=rcinfo\">Radio Canada &#8211; Montr\u00e9al : un budget et des taxes qui augmentent plus vite que l\u2019inflation<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/www.cbc.ca\/news\/canada\/montreal\/montreal-municipal-budget-2026-9.7040290#:~:text=But%20the%20overall%20budget%20rose,limit%2C%22%20Martinez%20Ferrada%20said.\">CBC &#8211; Property tax rates jump, more money for homelessness in Montreal budget<\/a><\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As the 2026 Montreal budget introduces a new wave of fiscal pressure on the business community, Leyton is reinforcing its commitment to helping local innovators protect their margins. While municipal costs are rising, the synchronization of federal tax credits and provincial incentives remains the most effective tool for maintaining a competitive edge. The budget for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2946,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[131],"tags":[113],"expertise":[774],"class_list":["post-2252","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-rsde-2-en","tag-sred-2","expertise-sred-tax-credits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Montreal Budget 2026: Non-Residential Tax Hike Puts Pressure on Business Margins<\/title>\n<meta name=\"description\" content=\"Explore how the 2026 Montreal budget impacts businesses and how to offset these costs using SR&amp;ED and green incentives.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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