Changes to the Property Tax Deferment Program
Apr 21, 2026
The BC provincial government released its 2026 budget , which included proposed
changes to the terms of the property tax deferment program.
Background
Many BC homeowners use the province’s Property Tax Deferment Program, which lets them
defer property taxes on their principal residence through a low-interest provincial loan.
Historically, interest was “simple interest,” sheltering participants from compounding and
creating meaningful savings over time.
The rate has also been very low — prime minus 2% under the regular program.
What’s Changing
■ Deferred taxes from 2026 onward will charge compound interest at prime + 2% (a more than 4% increase!)
■ Property tax balances from 2025 or earlier are not affected and will continue under the previous interest rules.
■ Homeowners do not need to repay their full balance to decide whether to defer future taxes.
Starting in 2026, the program moves to compound interest: each month’s interest is added to the deferred balance, and future interest is calculated on the total. Amounts deferred before 2026 remain under the original terms.
Interest rate term changes
Taxes deferred for 2025 and previous years (no change)
Regular program: Prime minus 2% – Families with children program: Prime – Terms: Simple interest
Taxes deferred for 2026 and subsequent years
Regular program: Prime plus 2% – Families with children program: Prime plus 2% – Terms: Compound interest
The provincial government said the change reflects borrowing costs that now exceed the program’s previous lending terms.
What’s Next
The budget now requires Legislative Assembly approval and related regulatory updates.
We suggest stopping tax deferrals this year and using existing bank or portfolio funds to pay annual assessments.
If deferring your property taxes was necessary to cover month-to-month expenses, please contact your Financial Advisor to discuss alternative solutions.
Pre-existing deferred taxes can remain deferred under the original interest terms. The new compounding and rate apply only to property taxes deferred for 2026 and later.
What Do I Do
If you are enrolled in automatic renewal, your 2026 taxes may be deferred under the new interest rate unless you opt out.
How to Opt Out of 2026 Automatic Renewal: Go to eTaxBC and submit a web message through your eTaxBC Property Tax Deferment account with the subject line “Opt Out – Auto Renewal” or call 1-888-355-2700
Deadline: It is recommended to opt out before June 1, 2026, to ensure 2026 taxes are not automatically deferred
Learn More: Visit the BC Property Tax Deferment Program webpage or call 1-888-355-2700
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