What are the main tax changes in the bc budget 2026?

The province raises personal income taxes, expands sales tax coverage to more services, and increases school property taxes. These steps aim to stabilize revenues as program and capital costs rise. Expect higher consumer prices for taxed services and larger annual bills for high-value property owners and businesses with big footprints.

How big is the B.C. deficit and what drives it?

The B.C. deficit is a record $13.3 billion. It reflects softer growth, rising program costs, and capital pressures. New tax measures broaden the base but do not close the gap quickly. Future improvement depends on execution and better resource receipts, including projected gains in natural gas royalties by FY27.

Who is most affected by the B.C. tax increase?

High-income filers, consumers buying newly taxed services, and owners of luxury or investment properties will feel the biggest impact. Service providers may face margin pressure if they cannot pass through PST. Entry-level buyers are less directly affected by the school tax, but broader cost pressures can still curb demand.

Why does the budget highlight natural gas and LNG?

B.C. projects a 38% jump in natural gas royalties by FY27, helped by LNG-linked flows and firmer pricing. This offers a partial fiscal offset to the large deficit. Investors should watch export ramp timing, price spreads, and logistics to assess whether the revenue lift materializes as planned.

Law and Government

B.C. Budget 2026, February 18: Tax Hikes, Record Deficit, LNG Lift

ByDanny Kontos February 18, 2026February 18, 2026

The bc budget 2026 sets higher income and sales taxes and raises school property taxes to help cover a record $13.3 billion deficit. It also projects a 38% rise in natural gas royalties by FY27 and offers stumpage deferrals for forestry. For investors, the bc budget 2026 points to softer consumer activity and pressure at the high end of real estate, with relative support for LNG-linked projects. We break down the tax moves, fiscal path, and sector impacts across British Columbia.