6 takeaways from B.C.’s 2026 budget for businesses, investors and taxpayers

Budget 2026 touches nearly every part of daily life in B.C.—from the taxes you pay and the cost of services to job opportunities, childcare and business investment. The provincial government is facing growing deficits and economic uncertainty, and says it’s trying to gradually bring that shortfall down over the next three years by tightening spending and running a more efficient public sector. At the same time, it’s continuing to put major funding toward core services many people rely on, including healthcare, education, childcare and supports for vulnerable populations.

As finance minister Brenda Bailey put it: “This isn’t about taking new, shiny actions. We’re protecting the gains we’ve already made. It’s about stepping back from many of the things we’d like to do and focussing on what we have to do.”

Here are six key takeaways from the 2026 provincial budget, and what they mean for you.

1. Taxpayers will see small tax increases—but some will pay less overall

Most British Columbians will see only a modest change to their income taxes under the 2026 budget. The province is increasing the tax rate on the lowest income bracket by less than 0.6 percentage points, which translates to about $76 more per year for the average taxpayer.

However, the impact won’t be the same for everyone. The government is also increasing the B.C. Tax Reduction Credit, which helps lower-income residents offset income taxes. When that credit is factored in, more than 40 percent of taxpayers are expected to pay less overall, not more.

The province says middle-income earners will still have some of the lowest taxes in Canada, and points to ongoing affordability programs—including the B.C. Family Benefit, childcare subsidies and lower public auto insurance rates—as additional financial support.

At the same time, the budget expands the provincial sales tax (PST) to cover more services. This means some professional services—such as accounting, engineering, architectural work and certain commercial real estate services—will now be subject to PST, which could increase costs for businesses and, in some cases, consumers. The province is also removing PST exemptions on some goods and services, including certain clothing repair materials, basic cable TV and landline phone services.

What this means for you: Most people will see only a small increase in their income taxes—about $76 per year on average—but lower-income residents may actually pay less once tax credits are factored in. However, you may notice slightly higher costs for certain services, as PST will now apply to more professional services and some everyday expenses that were previously exempt.

2. Property taxes are rising for some homeowners—especially foreign owners and high-value properties

The province is increasing taxes on certain property owners, particularly foreign owners and those with high-value homes.

Starting in 2027, the Speculation and Vacancy Tax will rise from 3 percent to 4 percent for foreign owners and others who don’t pay income tax in Canada. The tax is meant to discourage people from leaving homes empty and to encourage more housing supply.

Homeowners with higher-value properties will also see changes. The Additional School Tax—which applies to homes valued above $3 million—will increase, with rates rising from 0.2 percent to 0.3 percent on homes valued between $3 million and $4 million, and from 0.4 percent to 0.6 percent on homes worth more than $4 million. These changes also take effect in 2027.

The budget also makes adjustments to the homeowner grant by removing some rural enhancements that were originally introduced to offset carbon tax costs.

What this means for you: Most homeowners won’t see major changes, but foreign owners, investors and people with higher-value properties will likely pay more in property-related taxes in the coming years.

3. New tax credits and funding aim to boost manufacturing, forestry and major investments

The province is rolling out new incentives to encourage businesses—especially in manufacturing, natural resources and clean tech—to invest and expand in B.C.

One of the biggest changes is a new temporary 15 percent refundable tax credit for manufacturing and processing businesses that invest in buildings, machinery or equipment. B.C.’s large maritime industry will also see continued support from the province, with its existing tax credit for shipbuilding and ship repair being extended until the end of 2027.

Tech companies could see new tax advantages if B.C. moves ahead with a proposed “patent box” regime, which would lower tax rates on income earned from intellectual property developed in the province. The measure, still under consideration, could help attract and retain companies building and commercializing new technologies locally.

Companies in natural resources and tourism may soon face fewer bureaucratic delays, with more than $40 million earmarked over three years to speed up permitting and cut duplication in the approvals process. The goal is to make it faster and easier to get major projects off the ground.

Forestry companies, meanwhile, are set to receive $50 million in new and reallocated funding to help the sector navigate ongoing challenges, including international tariffs, shrinking timber supply and rising labour costs.

Finally, the budget introduces a new $400 million Strategic Investments Special Account, which the province can use to partner with the federal government and attract major investments in sectors such as clean energy, mining, forestry and clean tech.

What this means for you: Businesses—especially manufacturers, resource companies and tech firms—may benefit from tax credits and new funding, while faster permitting could make it easier to launch or expand projects in B.C.

4. More funding for skilled trades and training—but job market pressures remain

B.C.’s labour market is sending mixed signals. While the province added 32,200 jobs between 2024 and 2025, the unemployment rate has also climbed, reflecting a growing number of people entering the workforce and competing for those roles.

In response, the budget sets aside $283 million for skills training, with a major push toward the trades. Most of that funding—$241 million over three years—will expand training capacity and aims to double apprenticeship seats by 2028–29. Another $12 million will go toward employer training grants, helping businesses train workers for roles that are in short supply.

An additional $30 million will fund specialized training streams in fields such as engineering, computer science, geology and aerospace, as the province looks to prepare more workers for technical and higher-paying careers.

What this means for you: If you’re entering the workforce or considering a career change, there may be more opportunities to access training—especially in trades and technical fields—but competition for jobs could remain tight in the near term.

5. Public sector hiring will shrink as the province tries to rein in deficits

B.C. is projecting significant deficits over the next few years, though officials say the gap will gradually narrow—from $13.3 billion in 2026–27 to $11.4 billion by 2028–29—as the province reins in spending.

A major part of that effort involves shrinking the public sector workforce by about 15,000 positions over three years. Most of those reductions are expected to happen through attrition, early retirements and voluntary departures, rather than layoffs. Hiring is expected to continue in essential areas such as healthcare and education, where demand remains high.

Spending cuts are also targeting administrative costs. The province has already reduced about $400 million in planned spending for 2025–26 by tightening hiring, scaling back consulting and travel, and reducing other discretionary expenses, while also planning to trim executive roles across Crown corporations and parts of the health sector.

What this means for you: If you work in the public sector, job growth may slow and some roles may not be replaced as employees retire or leave. However, essential frontline jobs—especially in healthcare and education—are expected to remain a priority.

6. New funding for schools, childcare and disability support aims to help families

Families are a major focus of this year’s budget, with new funding aimed at schools, childcare and support for children with disabilities.

More than $634 million will go toward K–12 education over the next three years, funding new schools, expansions and upgrades in growing communities such as Mission, Prince Rupert and Langley. Another $167 million is earmarked to hire more teachers, counsellors and special education staff. At the post-secondary level, plans are underway to add 3,900 new student housing beds, which could help ease housing pressure for students and their families.

Childcare is also receiving a significant boost. Funding for ChildCare BC will increase by $330 million to help keep fees lower and maintain existing spaces. Another $25 million will support new childcare programs on school grounds, making it easier for parents to access care closer to home or work. However, enrolment for new providers in the $10-a-day childcare program will be paused temporarily while the province reviews how the program is funded.

Support for children and youth with disabilities is also expanding, with $475 million in new funding set aside to strengthen services and programs that many families rely on.

What this means for you: Parents may see continued relief from childcare costs, more school capacity and support services, and expanded programs for children with disabilities—but access to new $10-a-day childcare spaces may not expand as quickly in the short term.