2023 Budget tax changes

On February 28, 2023, 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 2023.

Budget 2023 introduces changes for:

• Income taxes
• Property taxes
• Sales taxes
• Various acts

Learn more below.

Income taxes

B.C. family benefit increased

Effective July 1, 2023, B.C. family benefit amounts are permanently increased, which gives families a little extra money to help with household expenses.

The maximum benefits will increase to:

• $145.83 per month for your first child
• $91.67 per month for your second child
• $75 per month for each additional child

If your adjusted family net income is more than $27,354 but less than $87,533, the benefit you’ll receive will be increased to a minimum of:

• $64.58 per month for your first child
• $62.50 per month for your second child
• $60.41 per month for each additional child

See B.C. family benefit for more information about this update.

Supplement for single parents announced

Effective July 1, 2023, low-income single parents will receive up to an extra $500 each year to help make ends meet on top of the increase to the B.C. family benefit. Eligible single parents will receive the supplement if:

• You’re receiving a B.C. family benefit payment in July 2023 or later months
• You’re not the cohabitating spouse or common-law partner of another person
• Your adjusted family net income is less than $27,354

If your income is more than $27,354, you will receive an adjusted amount as part of the overall calculation of your B.C. family benefit.

See B.C. family benefit for more information about this update.

Climate action tax credit increased

Effective July 1, 2023, the B.C. climate action tax credit amounts will increase to help combat the costs that a changing climate can create, such as higher electrical bills from colder or warmer weather.

For the July 2023, October 2023, January 2024 and April 2024 payments, the maximum annual amounts increase to:

• $447 for you
• $223.50 for your spouse or common-law partner (or for the first child in a single parent family)
• $111.50 for each child (except the first child in a single-parent family)

The threshold amounts increase to:

• $39,115 for individuals
• $50,170 for families

See B.C. climate action tax credit for more information about this update.

B.C. renter’s tax credit introduced

More than one-third of British Columbians rent their homes, and for many, this is their single biggest expense.

Starting for the 2023 tax year, a new refundable B.C. renter’s tax credit is introduced to support low- and moderate-income renters. It’s estimated that more than 80% of renting households will benefit from the credit.

The credit will be administered by the Canada Revenue Agency (CRA) for the province.

You will receive up to $400 per year if:

• You rent in B.C. for at least six months of the calendar year
• Your adjusted net income is $60,000 or less. If your income is between $60,000 and $80,000, you will receive a reduced credit amount 
• Rent is paid on an eligible rental unit
• On December 31 of the tax year, you’re a B.C. resident and:
  • 19 years of age or older, or
  • A parent, or
  • Cohabiting with a spouse or common-law partner

To receive the credit, you must file your 2023 T1 Income Tax and Benefit Return. Your 2023 tax return is filed in early 2024.

See B.C. renter's tax credit for more information about this update. 

Farmers’ food donation tax credit extended

The farmers’ food donation tax credit is extended for three years to the end of 2026 to continue encouraging farmers and farming corporations to donate agricultural products produced in B.C. to registered charities, such as food banks and school meal programs.

• Farmers' food donation corporate tax credit
• Farmers' food donation personal tax credit

Interactive digital media tax credit extended

After Los Angeles and New York, B.C. is the third largest film and television production centre in North America.

The interactive digital media tax credit is extended for five years to August 31, 2028, to continue to support thousands of job opportunities for British Columbians.

Property taxes

Rural property tax

Residential and non-residential rural area property tax rates for 2023 will be set in the spring, consistent with a long-standing rate-setting policy.  

School tax

Provincial residential and non-residential school tax rates for 2023 will be set in the spring.

Police tax

The police tax is the primary way the B.C. government generates funds to support policing in rural areas, generated as property tax. A small change to the police tax rate will help ensure stable revenue to support community policing services.

For people in rural communities who pay the police tax, it usually makes up approximately 3% of your total property tax bill.

Property transfer tax

Effective January 1, 2024, if you’re purchasing a new qualifying purpose-built rental building, you may qualify for an exemption from the further 2% property transfer tax on the amount of the residential property value that exceeds $3,000,000.

This exemption encourages people to build rental units with at least four suites and keep them as rentals for a minimum of 10 years.

Sales taxes

Provincial sales tax (PST)

Exemption for automated external defibrillators introduced

Effective March 1, 2023, automated external defibrillators (AEDs) are exempt from PST. Kits containing AEDs, and parts and services for AEDs, including pads, are also exempt from PST. The following bulletins are updated to include this information:

• Bulletin PST 100, Safety Equipment and Protective Clothing
• Bulletin PST 207, Medical Supplies and Equipment

This exemption helps make these life-saving devices more affordable.

Rules for online marketplace facilitators and online marketplace services clarified

Effective July 1, 2023, the rules regarding the collection obligations of online marketplace facilitators and taxation of online marketplace services will be amended.

These changes will clarify how to apply the rules and make it easier for businesses to meet their PST obligations.

More information is coming soon.

Carbon tax

Carbon tax rates increased

B.C. has the strongest and most comprehensive carbon-pricing policy in Canada. Carbon pricing is an important part of the CleanBC Roadmap to 2030, B.C.’s plan to cut emissions and build a sustainable, low-carbon future that benefits everyone.

Effective April 1, 2023, carbon tax rates are increased by $15 per tonne of carbon dioxide equivalent emissions (CO2e) annually until reaching $170 per tonne of CO2e in 2030.

See the carbon tax rate schedule for years beginning April 1, 2022, to 2026 on the new Carbon tax rates by fuel type web page.

More information about the responsibility for fuel sellers to calculate and pay the additional security due on their fuel inventory when rates increase will be available soon.

New pricing system for large industrial operations announced

The B.C. government is working closely with the federal government and industry to develop a new affordable and competitive made-in-B.C. carbon pricing framework to help industry reduce emissions.

Effective April 1, 2024, the new carbon pricing system will replace the existing system. More details, including performance measures for benchmarks for industry, will be available later this spring.

Carbon tax on natural gas and propane for greenhouse growers reduced

Effective April 1, 2023, qualifying commercial greenhouse growers can claim a point-of-sale reduced carbon tax for purchases of natural gas and propane used for heating and generating carbon dioxide (CO2) for increased crop productivity.

The point-of-sale reduced tax applies to greenhouse growers who grow vegetables, fruits, bedding plants, flowers, ornamental plants, tree seedlings or nursery landscape plants. To qualify, greenhouse growers must:

• Grow the crops identified above and generate gross revenues of $20,000 or more in the previous 12 months, and
• Have a reasonable estimate that revenues will be $20,000 or more during the next 12 months

More information is coming soon.

Motor fuel tax

Refund rates for International Fuel Tax Agreement licensees increased

Effective April 1, 2023, the refund rates for International Fuel Tax Agreement licensees increase to align with the carbon tax rates.

Various acts

Technical amendments

Effective July 1, 2020, the Income Tax Act's production services tax credit is amended to allow corporations to claim labour expenditures incurred up to 120 days prior to the pre-certification form submission date under the credit, regardless of how late the pre-certification form was filed. This will only apply to film productions that incurred their first eligible accredited labour expenditure between July 1, 2020, and February 21, 2022.

Effective on the date of the related federal changes, technical amendments are made to the Income Tax Act to ensure it remains aligned with the federal Income Tax.

Effective February 23, 2022, the Income Tax Act is amended to clarify the application of administrative provisions to the clean buildings tax credit.

Effective on royal assent, the Income Tax Act is amended to modernize the language for access to information held by other public bodies.

Effective January 1, 2024, the Insurance Premium Tax Act is amended to make electronic filing and payments mandatory, deem when payments are considered received and to allow for electronic notices of assessment.

Effective on royal assent, the Insurance Premium Tax Act and the Logging Tax Act are amended to harmonize the offence and penalty provisions with other taxes.

Effective March 15, 2020, the Insurance Premium Tax Act and the Logging Tax Act are amended to align the powers for the waiver or cancellation of penalties with the Employer Health Tax Act.

Effective on a date to be specified by regulation, the Insurance Premium Tax Act and the Logging Tax Act are amended to allow for a fee to be charged to recover costs associated with out-of-province audits.

Effective January 1, 2023, the Interest Rate under Various Statutes Regulation and the Interest on Overdue Accounts Payable Regulation are amended to calculate interest in accordance with the International Fuel Tax Agreement.

Effective April 1, 2013, the Provincial Sales Tax Act is amended to clarify that provincial sales tax does not apply to the federal goods and services tax.

Effective September 1, 2022, the Provincial Sales Tax Act is amended to clarify that provincial sales tax does not apply to the federal luxury tax imposed under the Select Luxury Items Tax Act.

Effective July 1, 2023, the Provincial Sales Tax Act is amended to clarify the definition of vapour product.

Effective November 27, 2018, the Speculation and Vacancy Tax Act is amended to clarify who is a corporate interest holder when a corporation that owns residential property appoints a receiver.

The Speculation and Vacancy Tax Regulation is amended to clarify geographic areas used to determine the annual fair market rent for residential property. The annual fair market rent is used for the purposes of applying the non-arm’s length tenancy exemption if the owners are foreign owners or untaxed worldwide earners (satellite families). 

Effective on royal assent, the following acts are amended to align the confidentiality provisions with the Employer Health Tax Act, the Income Tax Act and the Speculation and Vacancy Tax Act:

• Carbon Tax Act
• Forest Act
• Home Owner Grant Act
• Insurance Premium Tax Act
• Land Tax Deferment Act
• Logging Tax Act
• Mineral Land Tax Act
• Mineral Tax Act
• Motor Fuel Tax Act
• Petroleum and Natural Gas Act
• Property Transfer Tax Act
• Provincial Sales Tax Act
• Taxation (Rural Area) Act

Historical budget information

• 2022 Budget tax changes
• 2021 Budget tax changes
• 2020 Budget tax changes
• 2019 Budget tax changes
• 2018 Budget tax changes
• September 2017 Budget tax changes
• February 2017 Budget tax changes
• 2016 Budget tax changes