Sewer Surcharge Rebate Program
Businesses in Toronto may be eligible for a rebate on water that is used on-site for their industrial, commercial or institutional processes. The rebate is based on the percentage of purchased drinking water not returned to the City via the sanitary sewer system and is applied to the sewer portion of the water rate.
Offered by Toronto Water Business Support
Amount
Rebate applied to the sewer portion of the water rate (57 per cent of the water rate) on the percentage of purchased drinking water not returned to the sanitary sewer; e.g. a business consuming 100,000 m3 and diverting 20 per cent of purchased water could receive a rebate of $55,437.06
Quick eligibility check
Who can apply
The program is open to industrial, commercial, and institutional (ICI) water customers that use purchased water for their on-site operations. The percentage by which the sewage discharge is reduced in relation to the amount of water purchased must meet the following criteria:
Property’s Total Annual Water Consumption: ≤1500 m3; Sanitary Contribution Amount: ≤ 80%
Property’s Total Annual Water Consumption: >1500 m3 but ≤15,000 m3; Sanitary Contribution Amount: ≤ 85%
Property’s Total Annual Water Consumption: >15,000 m3 but ≤ 1,500,000 m3; Sanitary Contribution Amount: ≤ 90%
Property’s Total Annual Water Consumption: >1,500,000 m3; Sanitary Contribution Amount: ≤ 95%
For full eligibility criteria, refer to Toronto Municipal Code Chapter 849, Water and Sewage Services and Utility Bill.
About the funding
The rebate is based on the percentage of purchased drinking water not returned to the City via the sanitary sewer system and is applied to the sewer portion of the water rate.
In 2026, a business consuming 100,000 m3 and diverting 20 per cent of purchased water could receive a rebate of $55,437.06 (100,000 m3 x $4.8629** x 57%*** x 20%).
Annual water bill for general customer:
$486,290 (100,000 m3 x $4.8629)
Show all funding details
Annual water bill with sewer surcharge rebate:
$430,852.94 ($486,290 – $55,437.06)
**Rebate calculation applies to water rate paid by consumer, either the general (Block 1) or industrial (Block 2) water rate. See the current water rates.
***57 per cent represents the portion of water rate charged for sewer use discharge (sewer surcharge). This rate of rebate is determined by City Council and can be subject to change.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Capacity Buyback Program | Rebate, In-Kind Support | Free water audit plus a one-time cash rebate of up to 30 cents per litre of water saved per average day ($0.30/L for both water and sewer reduction, or $0.15/L for only one of water or sewer reduction) | Open |
| Eco-Roof Incentive Program | Rebate | Green roofs: $100 per m2 of vegetated area installed, maximum of $100,000 per green roof project, plus a Structural Assessment Grant equal to the cost of the structural assessment or $1,000 (whichever is less) | Open |
| Heritage Tax Rebate Program | Rebate | No fixed amount | Open |
