Provincial tax ratio limits are provincial rules restricting how much tax rates can differ between property classes. Provinces set limits on the ratios between commercial/industrial tax rates and residential rates to prevent municipalities from over-taxing businesses. For example, a province might limit commercial taxes to no more than 1.98 times the residential rate. These limits aim to keep business taxation competitive and prevent municipalities from shifting tax burden entirely onto commercial property to spare residential voters. Some provinces require municipalities reducing ratios to meet targets over time, gradually bringing business taxes closer to residential levels.