B.C. Provincial budget tax changes
Last updated on February 23, 2024On February 22, 2024, the B.C. government announced changes to the provincial tax laws. See the Budget and Fiscal Plan to read a full summary of all the tax changes for Budget 2024.
Budget 2024 introduces changes for:
- Income taxes (including the new BC home flipping tax)
- Employer health tax
- Sales taxes
- Property taxes
- Insurance taxes
- Speculation and vacancy tax
- Technical amendments to various acts
Learn more below.
Income taxes
BC home flipping tax
Government will introduce a new tax on income from the sale of residential real estate in British Columbia. The proposed new tax applies to income realized from the sale of properties in British Columbia that have been owned for less than 2 years.
The tax, which is subject to legislative approval, is separate and distinct from the federal property flipping rules and is not harmonized or administered with the federal or B.C. income tax.
Exemptions for this tax will be available.
See BC home flipping tax to learn more about this new tax and to determine how it may affect you.
B.C. family benefit bonus introduced
Effective July 1, 2024 until June 2025, eligible families will receive a B.C. family benefit bonus with their monthly B.C. family benefit payment. Both the annual benefit amounts and the income thresholds used to determine eligibility will temporarily increase by 25%.
See B.C family benefit for more information about this update.
Climate action tax credit increased
Effective July 1, 2024, B.C. climate action tax credit amounts will be increased. This increase will apply to both the tax credit amounts and the thresholds used to determine eligibility.
See B.C. climate action tax credit for more information about this update.
Training tax credit increased
The training tax credit for employers will be extended for three years to the end of 2027, and the training tax credit for apprentices will be extended for one year to the end of 2025.
Ship building and ship repair industry tax credit extended
The shipbuilding and ship repair industry tax credit is extended for two years to the end of 2026.
Animation productions excluded from the regional and distant location tax credits
Effective June 1, 2024, animation productions are excluded from the regional and distant location tax credits under the film and television tax credit and the production services tax credit.
See Film and television tax credit and Production services tax credit for more information about this update.
Oil and gas exploration expenses excluded from the mining exploration tax credit
Effective February 23, 2024, all oil and gas exploration expenses will no longer qualify for the mining exploration tax credit.
Employer health tax
Employer health tax exemption threshold increased
Effective January 1, 2024, the employer health tax exemption threshold is increased from $500,000 to $1 million. The tax rate is also increased for some employers depending on their B.C. remuneration amount.
See Employer health tax overview for more information about this update.
Sales taxes
Carbon tax
Biomethane credit refund amended
Effective April 1, 2024, the Carbon Tax Regulation is amended to allow qualifying retail dealers who claim the biomethane credit refund to include biomethane blended in previous reporting periods but not used for fulfilling biomethane contracts. Unused biomethane can be carried forward two years from the end of the reporting period in which the biomethane is blended.
Provincial sales tax (PST)
PST refund on goods purchased for resale
Effective July 1, 2024, the Provincial Sales Tax Act is amended to reduce the availability of PST refunds if a person acts as though they are the end purchaser of goods but are actually acquiring the goods for resale outside B.C.
Property taxes
A new approach to property taxation on Nisg̱a’a Lands and Treaty Lands introduced
Effective for the 2025 taxation year, the Province will no longer impose a requirement for property taxation to apply on Nisg̱a’a Lands or the Treaty Lands of a Modern Treaty Nation. Amendments to the Nisga’a Final Agreement Act and the Treaty First Nation Taxation Act will enable Modern Treaty Nations to self-determine property taxation on their respective treaty lands, including whether and how to exercise their own assessment and property taxation laws and policies. Modern Treaty Nations will continue to contribute to applicable provincial services, such as regional hospital districts.
Effective on royal assent, amendments to the Assessment Act will also better align provincial assessment rules with the unique aspects of Nisga’a Lands and Treaty Lands as well as Modern Treaty Nation governance.
Rural property tax
Provincial residential and non-residential rural area property tax rates for 2024 will be set in the spring, consistent with a long-standing rate-setting policy.
School tax
Provincial residential and non-residential school tax rates from 2024 will be set in the spring, consistent with a long-standing rate-setting policy.
Police Tax
Effective for the 2024 tax year, the police tax rate is set to recover 33 per cent of legislated costs, after policy-based deductions, consistent with the policy in place since 2023.
First time home buyers' exemption threshold increased
The first time home buyers’ exemption reduces or eliminates the property transfer tax on a principal residence for eligible first time home buyers.
Effective April 1, 2024, the fair market value threshold will increase for both the full and partial property transfer tax exemptions.
See First time home buyers' program for more information about this update.
Newly built home exemption threshold increased
The newly built home exemption reduces or eliminates property transfer tax for qualifying purchasers of a principal residence.
Effective April 1, 2024, the fair market value threshold will increase for both the full and partial property transfer tax exemptions.
See Newly built home exemption for more information about this update.
Exemption for new purpose-built rental buildings enhanced
Effective January 1, 2025 until December 31, 2030, purchases of qualifying new purpose-built rental buildings will be exempt from the general property transfer tax.
See Purpose-built rental exemption for more information about this update.
Insurance taxes
Exemption for farmers enrolled in provincial agricultural insurance programs introduced
Effective on royal assent, farmers will be exempt from the insurance premium tax for insurance under the Farm Income Insurance Act or the Insurance for Crops Act.
Speculation and vacancy tax
Definition of registered occupier amended
Effective January 1, 2024, a person who possesses a residential property under a lease registered in the Land Title and Survey Authority of British Columbia will be considered the registered occupier of the property under the speculation and vacancy tax. Registered leaseholders who have control over how the property is used will be responsible for the speculation and vacancy tax.
Registered leaseholders who are not already required to declare in 2024 will declare for the first time in 2025, based on the use of the property in 2024.
Technical amendments for various acts
Effective April 1, 2013, the Provincial Sales Tax Act is amended to clarify the definition of software for PST purposes. See the following bulletins for more information about this update:
Effective on royal assent, the Provincial Sales Tax Act is amended to enable a refund of PST that a purchaser has self-assessed on goods purchased from a seller who did not collect PST and then subsequently returns the goods for a refund.
Effective February 23, 2024, the Provincial Sales Tax Exemption and Refund Regulation is amended to clarify that projects that use sunlight, wind, air, tides, currents, waves, water or a similar renewable resource to manufacture clean energy qualify for the production machinery and equipment exemption.
Effective on deposit, the Provincial Sales Tax Exemption and Refund Regulation is amended to clarify the rules for when services are provided with taxable leased goods.
Effective on royal assent, the Carbon Tax Act, Motor Fuel Tax Act, and Provincial Sales Tax Act are amended to provide discretionary authority for the director to require online only filings and submission of information or documents.
Effective July 1, 2024, the Carbon Tax Act, Motor Fuel Tax Act, and Provincial Sales Tax Act are amended to update offence provisions and administrative penalties to match those in other B.C. tax statutes.
Effective on royal assent, the Motor Fuel Tax Act and the Financial Administration Act are amended to enable B.C.’s regulations for interest payable under the International Fuel Tax Agreement (IFTA) to adopt IFTA interest rule changes automatically.
Effective December 15, 2022, the Income Tax Act is amended to ensure that the general anti-avoidance rule applies to abusive transactions that may result in future tax benefits, for transactions that occur on or after April 7, 2022.
Effective October 18, 2022, the Income Tax Act is amended to update how federal amendments to administrative provisions are adopted by the climate action tax credit and to exclude the adoption of certain federal payments.
Effective January 1, 2023, the Income Tax Act is amended to clarify that an individual cannot claim the renter’s tax credit on the in-bankruptcy returns for taxation years that they are bankrupt.
Effective January 1, 2024, the Income Tax Act is amended to clarify that if an individual is bankrupt, they can no longer claim the refundable sales tax credit on the in-bankruptcy returns.
Effective January 1, 2024, the Income Tax Act is amended to require payments over $10,000 to be made electronically. This applies to payments made after 2023.
Effective January 1, 2024, the Income Tax Act is amended to provide that a taxpayer who signed up for the Canada Revenue Agency's MyAccount is considered to have received their notice of assessment on the day it is available for viewing electronically.
Effective December 3, 2023, the Income Tax Act is amended to extend the determination period for the B.C. emergency benefit for workers program if a Notice of Redetermination was issued after October 23, 2023 and before December 2, 2023.
Effective September 1, 2024, the Interactive Digital Media Tax Credit Regulation is amended to add gambling with currency to the list of ineligible products and to clarify a reference to the Minister of Finance.
Effective on royal assent, the Income Tax Act is amended to extend the clean buildings tax credit’s certification deadline to September 30, 2027.
Effective October 1, 2024 the Property Transfer Tax Act is amended:
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to clarify the calculation of interest on an amount of tax owing to the government
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to calculate interest on overpaid tax in accordance with the Interest on Overdue Accounts Payable Regulation
Effective on royal assent, the Property Transfer Tax Act is amended to allow the administrator to impose penalties for failure to provide required information. See File and pay property transfer tax for more information about this update.
Effective on royal assent, the Speculation and Vacancy Act is amended to replace the reference to “the date this Act received First Reading in the Legislative Assembly” with “October 16, 2018".
Effective November 27, 2018, the Speculation and Vacancy Act is amended to provide that if the administrator decides to examine a declaration submitted after December 31 in the third year after the end of the applicable calendar year, they have six years from the date the declaration is received to assess the owner for that calendar year.
Effective on royal assent, the following tax acts are amended to harmonize and modernize the appeal to minister provisions in those acts:
- Carbon Tax Act
- Employer Health Tax Act
- Home Owner Grant Act
- Insurance Premium Tax Act
- Logging Tax Act
- Mineral Tax Act
- Motor Fuel Tax Act
- Property Transfer Tax Act
- Provincial Sales Tax Act
- Speculation and Vacancy Tax Act
- Tobacco Tax Act
Effective on a date to be specified by regulation, the following tax acts are amended to add regulation making authority governing the rules for tax appeals to the Supreme Court of British Columbia:
- Carbon Tax Act
- Employer Health Tax Act
- Insurance Premium Tax Act
- Logging Tax Act
- Mineral Tax Act
- Motor Fuel Tax Act
- Property Transfer Tax Act
- Provincial Sales Tax Act
- Speculation and Vacancy Tax Act
- Tobacco Tax Act