British Columbia’s 2026 budget introduces major tax changes aimed at slowing the province’s growing debt. Finance Minister Brenda Bailey said the government is raising income taxes and adjusting sales and property taxes to protect public services, as the province’s debt is expected to rise from $154 billion to $183 billion next year.
Most residents will see a small income tax increase, with the lowest tax rate rising to 5.6 per cent. On average, people are expected to pay about $76 more in 2026. However, the province is also increasing tax credits for lower-income earners, and says the bottom 40 per cent of taxpayers will pay less overall. Property taxes will rise on homes valued above $3 million, and foreign or non-resident owners will face a higher speculation tax.
The province is also expanding the provincial sales tax to more services, including accounting, engineering, security services and some communication and clothing services. At the same time, a temporary tax credit will support manufacturing investments starting in 2026.
Reaction to the budget is mixed. The Canadian Taxpayers Federation criticized the increases as harmful to families, while the Canadian Centre for Policy Alternatives said higher taxes on wealthy residents could have gone further. The government projects a $13.3-billion deficit for the 2026–27 fiscal year.
