BC Property Tax Deferment Program

Last month in its budget, the BC Government changed the interest rate policy for the Property Tax Deferment Program.  For many who have been deferring their property taxes, this now raises a significant question about whether or not to keep deferring their property taxes.

The details are that under the old rules, the interest rate was Prime – 2% of simple interest. However, under the new rules the interest rate is Prime + 2% of compound interest.  Thus, the cost is now 4% higher than it had been, and the loan will be compounding each year.  In other words, this program is not nearly as attractive as it once was.

With this in mind, my advice is that if the property owner has comfortable cash-flow to be paying their property taxes, do not renew the tax deferral and restart the payment of property taxes going forward.  This rate change only applies to property taxes owing for 2026 onwards and will not affect any previously deferred property taxes.  Thus, there is no need to begin repaying the previously deferred property taxes.

However, if the property owner does not have the cash-flow to begin paying their property taxes, stay with the deferral program.  It is not that the deferment has become a penalty, it is just not as attractive a program as it once was.  Essentially, the interest rate is now more closely aligned with the historical average rate of return we have seen from real estate over many decades.

If the property owner wishes to opt out of the deferment program, they are required to notify the province of this decision, and this must be done before June 1^st.   Notification can be made by web message through the eTaxBC Property Tax Deferment Account with the subject line, “Opt Out – Auto Renewal”, or by calling 1-888-355-2700. 

And if a property owner wishes to continue their deferment, there is nothing to be done and all will continue… assuming they had their deferment account set for auto-renewal.

I hope this information is helpful and useful.  For further details on the program, below is the link to the related BC Government website.

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/property-tax-deferment-program/tax-deferment-interest-fees

And if you have any further questions on the topic, please feel free to call or email us and we will be happy to work through this with you.

All the best,

Bryson

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