B.C. Provincial budget tax changes
Last updated on March 4, 2025On March 4, 2025, 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 2025.
Budget 2025 introduces changes for:
- Income taxes
- Natural resource taxes
- Property taxes
- Sales taxes
- Speculation and vacancy tax
- Technical amendments to various acts
Learn more below.
Income taxes
Film and television tax credit and production services tax credit
The basic film and television tax credit is increased from 35% to 40%, and the basic production services tax credit is increased from 28% to 36%. These new rates apply to productions with principal photography beginning on or after January 1, 2025.
Major production tax credit
Effective January 1, 2025, a new major production tax credit is available to production services tax credit claimants with B.C. production costs greater than $200 million. The major production tax credit is available for productions with principal photography starting on or after January 1, 2025, and is equal to 2% of a corporation’s accredited qualified B.C. labour expenditures in respect of the major production. The credit will be available upon completion of the major production.
Regional and distant location tax credits for animation productions
Effective January 1, 2025, the regional and distant location tax credits are amended to allow animation productions with a brick‑and‑mortar presence in a regional or distant location to claim the supplemental credits. The change applies to animation productions under either the film and television tax credit or the production services tax credit with principal photography starting on or after January 1, 2025.
Interactive digital media tax credit
Effective September 1, 2025, the interactive digital media tax credit is increased to 25% for eligible salaries and wages incurred in B.C. on or after September 1, 2025. The program’s sunset date is also removed and the program is made permanent.
Small business venture capital tax credit
Effective for 2025 and subsequent taxation years, the annual credit limit that an individual can claim for investments made on or after March 4, 2025, is increased from $120,000 to $300,000.
Small business venture capital program budget
Effective for the 2025 to 2027 calendar years, Budget 2025 proposes to increase the program’s annual maximum budget for venture capital tax credits from $38.5 million to $53.5 million.
- Small business venture capital personal tax credit
- Small business venture capital corporate tax credit
Training tax credit for apprentices
The training tax credit for apprentices is extended for three years, to December 31, 2028. Effective April 1, 2025, the program is also amended, so that those who are eligible for the enhanced credit for First Nations individuals or persons with a disability continue to receive the enhanced credit after the federal Apprenticeship Incentive Grant expires on March 31, 2025. Currently, the amount of the enhanced training tax credit is tied to the amount received under the federal grant.
Clean buildings tax credit
The deadline for incurring qualifying expenditures for the clean buildings tax credit is extended by one year to March 31, 2026. Deadlines for completion of the retrofit and application for certification have been extended by one year accordingly.
B.C. family benefit for grieving families
Effective January 1, 2025, the B.C. family benefit is amended to continue payments for six months following a child’s death. This amendment harmonizes with the federal amendment to the Canada Child Benefit.
Natural resource taxes
New mine allowance
The new mine allowance is extended for five years, to December 31, 2030.
Property taxes
Exemption for First Nation Property Ownership
Effective May 21, 2024, transfers of legal ownership of a property to the First Nation are exempt from the property transfer tax if the property is already beneficially owned by the First Nation. The exemption only applies to land beneficially owned by a First Nation defined as a band under the federal Indian Act prior to May 21, 2024.
Exemption from annual rural property tax for eligible First Nations properties used for certain purposes
Effective for the 2026 tax year, eligible properties when used by First Nations for a cultural or community purpose only or are assessed as having no present use are exempt from annual rural property tax. Eligible properties include crown land that is occupied by one or more First Nations, or property that is transferred (or purchased with funds provided by the government) for the purpose of reconciliation where the First Nations is the sole beneficial owner of the property.
Exemption from school tax for eligible First Nations properties used for certain purposes
Effective for the 2026 tax year, eligible properties when used by First Nations for a cultural or community purpose only or are assessed as having no present use are exempt from annual provincial school property tax. Eligible properties include crown land that is occupied by one or more First Nations, or property that is transferred (or purchased with funds provided by the government) for the purpose of reconciliation where the First Nations is the sole beneficial owner of the property.
Property tax exemption for First Nations in treaty designated foreshore areas
Effective for the 2026 tax year, lands and improvements in rural areas within a treaty designated foreshore area that are owned or held by Modern Treaty First Nations or their public institutions is exempt from annual rural property tax.
Rural property tax rates
Provincial residential and non-residential rural area property tax rates for 2025 will be set in the spring, consistent with a long-standing rate-setting policy.
School tax rates
Provincial residential and non-residential school tax rates for 2025 will be set in the spring, consistent with a long-standing rate-setting policy.
Police tax rate
Effective for the 2025 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.
Sales taxes
Exemption for used zero-emission vehicles
Effective May 1, 2025, used zero-emission vehicles are subject to provincial sales tax. The exemption for used zero-emission vehicles that was introduced in Budget 2022 was originally scheduled to end in 2027. Additional information will soon be available.
See the following for details:
- Bulletin PST 308, PST on Vehicles (PDF, 400KB)
- Bulletin PST 116, Motor Vehicle Dealers and Leasing Companies (PDF, 430KB)
- List of zero-emission vehicles available in Canada
- Small business guide to PST
- PST exemptions and documentation
Speculation and vacancy tax
New speculation and vacancy tax rates
Effective January 1, 2026, the speculation and vacancy tax rate for Canadian citizens and permanent residents who are not untaxed worldwide earners, as well as others currently taxable at 0.5% increases to 1%.
The rate for foreign owners and untaxed worldwide earners, as well as others currently taxable at 2%, increases to 3%.
In conjunction with the tax rate increases, the non-refundable speculation and vacancy tax credit for residents of B.C. also increases from $2,000 to $4,000.
Exclusion from speculation and vacancy tax specified area
Effective retroactively to January 1, 2024, the Predator Ridge resort in the City of Vernon is excluded from the specified areas for the speculation and vacancy tax.
Technical amendments for various acts
Effective January 1, 2019, the Speculation and Vacancy Tax Act is amended to accept opinions and documents completed by nurse practitioners for health-related exemptions.
Effective on royal assent, the Provincial Sales Tax Act is amended to clarify that, where a vehicle is brought into B.C. and a person registers it for use, the provincial sales tax payable on that vehicle is reduced by the amount of B.C. sales tax the person previously paid on that vehicle.
Municipal and regional district tax (MRDT) program requirements are updated to reflect that designated recipients of an MRDT that is set to expire near a scheduled provincial election may have their MRDT extended past the election date without completing a full renewal application.
Effective on royal assent, the Income Tax Act is amended to clarify when the Minister must start to pay interest on any unpaid refunds of the natural gas tax credit because of a subsequent assessment by the Canada Revenue Agency.
Effective the dates of the relevant federal changes to corporate instalment provisions, the Income Tax Act is amended to update references to the federal Income Tax Act for new federal tax credits.
Effective January 1, 2013, the Income Tax Act is amended to clarify that the income of an ineligible spouse or common-law partner is included in the calculation of adjusted income for the refundable sales tax credit.
Effective April 1, 2025, the carbon tax increases $15/tonne per the federal carbon pricing requirements. Government remains committed to removing the consumer carbon tax should the federal government remove the requirement for carbon pricing across Canada. 100% of incremental carbon tax revenue is returned to British Columbians through the climate action tax credit.