The election was
called 2 years early by NDP Premier David Eby. This resulted in a landslide
Conservative win and majority government, led by Premier-elect Lorne Doerkson.
As of October 26, 2026, the seat results show:
64 Conservatives
27 NDP
2 Green
A few of the ridings are still too close to call, so the end results
may differ.
The BC
Conservative party platform includes the following personal and business tax measures,
PST and other measures, but is a small portion of their platform:
Basic Personal Amount
Increase from $13,216 to $32,000
for 2027. This provides a tax savings of $1,051.90 [($32,000 - $13,216) x
5.6%].
Multigenerational Home Renovation Tax Credit
Match the federal
Home Renovation Tax Credit, which would mean a tax reduction of up
to $2,800 (5.6% x $50,000), which can be split between qualifying
individuals.
Refundable BC Children's Activity Credit
up to $500 per child, but no detail was provided as to the tax rate to
be applied to this.
Provincial Sales Tax
Permanently cancel the NDP's PST expansion to professional services
Exempt productive capital from PST for 3 years, including taxable
machinery, equipment, and business software purchased or leased. This
does not include vehicles, but commercial work vehicles may be added.
No PST on construction of designated major projects until they are in
service.
First Job Tax Credit
Provide a tax credit to businesses on the first $5,000 in payroll
costs.
Expand Mining Exploration Tax Credit
Raise Employer Health Tax exemption indexed to inflation
Lower small business tax rate as growth allows
Restore the seniors' property tax deferral terms
Tax Reform
Appoint a panel to report within 6 months "with a comprehensive
plan to simplify BC's tax system, make it more efficient, and attract
more investment." This needs to be done by the federal
government!
It will be a difficult process to get the BC economy and debt back on track,
with the legacy and huge debt left by the NDP.
This was another very disappointing budget. Despite
proposals to increase income taxes and other taxes, the deficits, debt and interest costs are
not being reduced.
Forecasts of Provincial Debt, Deficits, and Annual Interest
All amounts are in $Billions. Fiscal years end on March 31st.
Fiscal Year
Ending
Debt
Deficit
Annual
Interest
2026
$154.1
$9.6
$5.3
2027
183.4
13.3
6.5
2028
209.9
12.2
7.8
2029
234.6
11.4
8.9
The BC
Balanced Budget and Ministerial Accountability Act, which was passed in 2001
under the BC Liberal government, prohibits deficit budgets. The NDP were
elected in 2017. As they have done every year since 2020, they are revising this
Act to permit deficits. This year the period for
allowable deficits is extended to the 2028-2029 fiscal year.
2026 to 2029 debt, deficit, and annual interest are from the Budget
and Fiscal Plan 2026/27 - 2028/29. The debt and deficit are shown on page 1
(page 11 of the pdf), and the annual interest cost is shown in Table A19 on page
158 (page 168 of the pdf).
SR&ED tax credit amended to increase expenditure limit and phase-out
thresholds, for tax years beginning on or after December 16, 2024. The
sunset date for the SR&ED tax credit is also removed.
Property
Tax Deferment Program interest rates increased to prime + 2% compounded
monthly from prime - 2% simple interest.
Provincial Sales Tax
will be expanded to many services effective October 1, 2026.
Will be expanded to many services effective October 1,
2026: Professional services: see Notice 2026-001: Notice to providers of professional services.
This was justified by aligning it with other provinces. Only Manitoba and
Saskatchewan have PST. Other provinces have GST or HST, which is refundable
to businesses in the form of input tax credits.
PST exemptions eliminated effective October 1, 2026:
Clothing patterns, yarn, natural fibres, synthetic thread, and fabric that are commonly used in making or repairing clothing
Services related to clothing and footwear, except basic laundry
services will remain exempt
Basic cable TV services, residential landline telephone services,
and toll-free telephone services.
Additional school tax
(property tax) rates will be increased for 2027 and subsequent tax years,
for residential properties valued over $3 million.
See BC
Provincial budget tax changes on the BC website for more information, and
for a complete list of tax changes, not all of which are listed above.
Forecasts of Provincial Debt, Deficits, and Annual Interest
All amounts are in $Billions. Fiscal years end on March 31st.
Fiscal Year
Ending
Debt
Deficit
Annual
Interest
2025
$133.0
$9.1
$4.9
2026
156.6
10.9
5.2
2027
183.7
10.2
6.2
2028
208.8
9.9
7.4
By March 31, 2028, the total provincial
debt will have more than tripled since the NDP were elected in 2017.
At March 31, 2017 the debt was $65.8 billion.
The BC
Balanced Budget and Ministerial Accountability Act, which was passed in 2001
under the BC Liberal government, prohibits deficit budgets. The NDP were
elected in 2017. As they have done every year since 2020, they are revising this
Act to permit deficits. This year the period for
allowable deficits is extended to the 2027-2028 fiscal year.
2025 to 2028 debt, deficit, and annual interest are from the Budget
and Fiscal Plan 2025/26 - 2027/28. The debt and deficit are shown on page 1
(page 11 of the pdf), and the annual interest cost is shown in Table A19 on page
158 (page 168 of the pdf).
Bill
7 - Economic Stabilization (Tariff Response) Act, first reading March 13,
2025. This was basically an attempted power grab, so that the government could
act without the approval of the Legislative Assembly. Due to significant
pushback, even within the NDP, this Act will be revised.
Bill
8 - Carbon Tax Amendment Act, 2025 - March 31, 2025, first reading and Royal
Assent, reduces the rate of carbon tax to zero for the year starting April 1,
2025 and each subsequent year. It also cancels the Climate
Action Tax Credit, such that the final payment will be in April 2025, which
is based on 2023 tax returns.
Fiscal measures proposed:
There were no personal income tax changes
Carbon tax is increasing April 1,
2025 by $30 per tonne, from $95 to $125 per tonne. The BC government
"remains committed to removing the consumer carbon tax should the
federal government remove the requirement for carbon pricing across
Canada." The consumer carbon tax was subsequently reduced to zero%
effective April 1, 2025.
BC
Family Benefit is amended effective January 1, 2025 to continue payments
for 6 months following a child's death. This harmonizes with the federal
amendment to the Canada Child Benefit.
PST exemption for used zero-emission vehicles is eliminated effective May
1, 2025.
Training
Tax Credit for individuals extended for 3 years to the end of 2028, and
is amended effective April 1, 2025 to allow the enhanced credit for First
Nations individuals or persons with a disability to continue to receive the
enhanced credit after the federal Apprenticeship Incentive Grant expires on
March 31, 2025.
Effective January 1, 2026, the Speculation
and Vacancy Tax rates will increase from 2% to 3% for foreign owners and
from 0.5% to 1% for Canadians.
Predator Ridge resort in Vernon is excluded from the specified area
for the Speculation and Vacancy Tax, effective retroactively to January
1, 2024.
Maximum Parking
Rights Tax: rate to increase from 24% to 29% effective on Royal Assent.
Increases in tax credit rates for the basic Film Incentive BC and basic
production services tax credits, a new major production tax credit is
introduced, and regional and distant location tax credits are amended. All
are effective January 1, 2025.
Interactive Digital Media Tax Credit increased effective September 1,
2025, and the program is made permanent.
Clean Buildings Tax Credit deadline extended by one year to March 31,
2026.
Small Business Venture Capital Tax Credit annual limit increased effective
for 2025 and later years, from $120,000 to $300,000.
The new mine allowance is extended for five years, to the end of 2030.
2025 debt and deficit amounts are as per Table 1.1 in the Fall 2024 Economic
and Fiscal Update (link above). With July 1, 2025 projected population of
5,753,153 (as per Population
Estimates & Projections for British Columbia), the debt will be $22,597
for every person in BC, or $90,388 for a 4-person family. This is projected to
increase to $117,188 by 2027.
PST exemption for automated
external defibrillators (AEDs) - this begs the question of why there was PST
on them in the first place!
Legislation introduced: Bill
10, Budget Measures implementation Act, 2023 - this includes a provision
that they do not have to balance the budget until the 2026-2027 fiscal year,
even though the economy is doing well now.
on Ministry of Finance Website, no personal or corporate income
tax changes, but did announce a 6% increase to Medical
Services Plan premiums to take effect January 1, 2012.