Toronto charges a yearly Third Party Sign Tax on billboards and other signs that advertise something not sold on the property. For 2026 the amount runs from $1,577.00 for the smallest class to $52,259.36 for the largest, per sign. Invoices are assessed by March 31 and payment is due on July 1.
What the tax covers
A third party sign carries an ad for a product, service or business that is not located where the sign stands. One example is a rooftop board selling a phone plan is one example, and a digital screen beside an expressway is another. The sign over a shop’s own door is a different thing, and this tax does not apply to it.
The City sets the amount by the size and location of the sign and by the type of copy it displays. Static paper or vinyl copy sits at the low end. Electronic faces that change the image sit higher.
Six classes, six rates for 2026
Every sign falls into one of six classes, from Class 1 (lowest) to Class 6 (highest), numbered with roman numerals on the City page. The class depends on the type of sign (ground, wall, roof, electronic or projected image), how the copy is displayed (static, mechanical or electronic) and the total area of the sign face. The rates for 2026 are per sign, not per square metre:
- Class 1: $1,577.00
- Class 2: $3,908.18
- Class 3: $6,787.90
- Class 4: $15,084.23
- Class 5: $38,118.60
- Class 6: $52,259.36
The City says these rates rise each year. We could not confirm the exact percentage of the latest increase on an official page, so treat any figure you see quoted elsewhere with care.
A worked example
Say a company owns a Class 4 sign and a Class 2 sign. The 2026 tax is $15,084.23 plus $3,908.18, which comes to $18,992.41 for the two. Divided by twelve, that is about $1,583 a month set aside for tax alone, before rent, power or printing.
The step between classes matters more than it looks. Moving a sign from Class 5 to Class 6 adds $14,140.76 a year. That gap alone is more than the whole Class 3 bill.
Where the money goes
This tax is a source of general City revenue. The 2026 staff-prepared operating budget lists it at $95 million, down from $105 million budgeted for 2025, a drop of 9.5%. Set against an operating budget of $18.9 billion, that is roughly half of one percent.
The older version of this article claimed the money is locked into a public art fund. We found no official page that says so, so that claim is gone.
Who pays, and who feels it
The sign owner pays, not the drivers who see the ad. Whether an owner passes the cost to advertisers is a business matter between them, and the City does not track it. Ordinary homeowners do not see this tax on any bill, though the revenue does help fund services that property tax also pays for. You can see how the yearly levy hits a typical home in the property tax calculator.
Disputing an assessment
An owner who thinks a sign is in the wrong class can file a Notice of Objection, a form the City lists on its sign tax page. We did not find a filing deadline on that page, so check the by-law (Chapter 771 of the Municipal Code) before relying on a date. For wider context on what living in the city costs, try the Toronto cost of living calculator. See also the Land Transfer Tax calculator, and the full set of real estate calculators.
Sources
- City of Toronto, Third Party Sign Tax
- City of Toronto, 2026 staff-prepared operating budget, Appendix 1.1
- Toronto Municipal Code, Chapter 771, Third Party Sign Tax
Common questions
When is the Toronto third party sign tax due?
How much is the sign tax in 2026?
Does a shop pay this tax on its own sign?
Can an owner dispute the class of a sign?
Last reviewed: . Figures come from the official sources listed above. How we check the numbers and our editorial policy.