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B.C. Hikes Tax Rate as Budget Delivers Record $13-Billion Deficit
British Columbia's 2026 budget includes a 0.54% income tax increase affecting 60% of taxpayers and plans to cut 15,000 public sector jobs over three years to address a $13.3 billion deficit.
- On Feb. 17, 2026, Victoria's B.C. government announced a budget that raises the bottom personal income tax rate to 5.6, effective after July 1, 2026, and plans to reduce 15,000 public-sector jobs over three years.
- Faced with widening structural pressures, the deficit is projected to spike to $13,300,000,000 for 2026/2027, up from a forecasted $9,600,000,000 this year, as the government describes a mismatch between sluggish revenue growth and rising spending.
- The budget notes the average taxpayer will pay an additional $76 in 2026 while the B.C. tax reduction credit increases to $690, benefiting incomes under $25,570.
- Capital spending will be wound back to $18.7 billion next fiscal year from $20.4 billion, with delays to long‑term care facilities, University of Victoria student housing, and Phase 2 Burnaby hospital, while the government plans project resequencing to manage costs.
- Further tax changes include PST expansions later in 2026 and adjustments to the School Tax and the Speculation and Vacancy Tax beginning in 2027, with revenue projected to rise to $19.49 billion in 2026/2027.
30 Articles
30 Articles
Tax hike, record deficit and public sector cuts among B.C. budget highlights
VICTORIA — Here are some highlights from British Columbia’s 2026 budget, which Finance Minister Brenda Bailey says involves “serious work for serious times.” It includes a tax increase on the lowest income tax bracket, cuts to public-sector staffing and delays to capital projects, even as the deficit continues to spike. INCOME TAX HIKE The tax […]
B.C. budget includes tax increases, 15K public job cuts, projected $13B deficit
The B.C. government’s 2026 budget announced a series of tax increases, capital project delays, and a reduction of 15,000 public sector jobs over three years, but major deficits are still forecasted for the indefinite future.
BC Hikes Tax Rate as Budget Delivers Record $13 Billion Deficit
British Columbia Finance Minister Brenda Bailey has unveiled what she calls a “serious” budget for 2026 that raises the base income tax rate while failing to rein in the deficit as previously pledged. The tax rate on the lowest bracket is being increased by 0.54 percent, with government staff saying 60 percent of tax filers will face higher bills, and the average taxpayer will be hit with a $76 hike. The budget says increasing the bottom tax rat…
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