On February 17, 2026, the B.C. government released its 2026 budget, projecting deficits of $9.6 billion for 2025–26 and $13.3 billion for 2026–27. The plan raises revenue through income tax increases, broader PST, and property tax changes. Most people will notice impacts in four areas: income tax, sales tax on services, property taxes, and family/volunteer benefits.
Higher income tax on your first dollars
Starting 2026, B.C.’s lowest tax rate rises to 5.6% from 5.06% on the first $50,363 of income. Basic credits (personal amount, age amount) use the same higher rate.
This affects nearly everyone—workers and retirees alike—with a small but noticeable provincial tax bump on 2026 returns. Top combined federal/B.C. rates stay the same: 53.5% on ordinary income, 26.75% on capital gains.
From 2027–2030, indexation of brackets and credits freezes. Rising incomes will push more into higher brackets, quietly raising taxes over time.
Takeaway: Maximize RRSP/TFSA contributions, income splitting, and timing of withdrawals/bonuses.
PST hits more services and items
From October 1, 2026, PST applies to:
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Accounting/bookkeeping
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Architectural/engineering/geoscience services (30% of price)
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Strata/rental property management
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Non-residential real estate commissions
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Security/private investigation
Exemptions end for clothing patterns/yarn/fabrics, clothing repairs, basic cable, and landline/toll-free phone services.
Households face higher strata fees, renovation costs, and utility bills. Businesses see added service expenses.
Takeaway: Update 2026–27 budgets; business owners, review pricing/contracts.
Property taxes up for some owners
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Higher school tax on homes over $3M
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Rural property taxes rise (tied to GDP growth) from 2026
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$200 northern/rural homeowner benefit ends Jan 1, 2027
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Speculation & Vacancy Tax to 4% from 3% (2027+) for foreign/untaxed owners
High-value, rural, or vacant property owners face higher carrying costs. Non-residents may rethink holding underused homes.
Takeaway: Review property plans.
New support for families & volunteers
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B.C. Family Benefit disability supplement: up to $6,000/child (from July 2027), tied to federal DTC, phases out above $50K family income
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Tax reduction credit: max $690 (from $575) if income under $25,570
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Volunteer firefighter/search & rescue credit: $6,000 (doubled) from 2026
Takeaway: Check Disability Tax Credit eligibility; ensure credits are claimed.
Next steps
These changes add up: small income tax hikes, broader PST, targeted property increases, plus select benefits.
If you’re wondering how these changes will affect your taxes or your long-term plans, let’s review your situation together and identify any adjustments that could keep you on track.
Sources: Province of British Columbia. Budget 2026: Stronger Together. Ministry of Finance, 17 Feb. 2026, www.bcbudget.gov.bc.ca/2026/.
The opinions expressed are those of the author and not necessarily those of CI Assante Wealth Management Ltd. This material is provided for general information and the opinions expressed and information provided herein are subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on the information presented, please seek professional financial advice based on your personal circumstances.