The 2026 BC Budget: What It Means for Homeowners and Sellers Right Now

On February 17, 2026, the Province released its updated budget.

Whenever a new budget comes out, the headlines focus on politics. What I focus on is this:

How does it affect real homeowners here in Richmond and Greater Vancouver?

Here are the immediate impacts you should understand, especially if you own property, are considering selling, or hold higher value real estate.

1. PST and Strata Management

There was early confusion about whether PST would now apply to strata management services.

Based on current guidance, residential real estate services remain non taxable. That means typical strata management for condos and townhomes should not be subject to PST.

Why does this matter?

Because if PST were added, strata fees would increase. In a market where buyers are already sensitive to monthly carrying costs, even modest increases can affect affordability and pricing.

For now, condo owners do not appear to be impacted. But it is a reminder that rising costs always influence buyer behaviour.

2. Higher School Tax on $3 Million Plus Properties

If your property is assessed at $3 million or more, this is where you will notice a change.

Beginning in the 2027 tax year:

• The school tax rate increases on the $3M to $4M portion
• The rate increases further on values above $4M

This applies to detached homes, townhomes, condos, and even vacant land.

For higher value property owners, this adds to annual carrying costs. For land assembly and redevelopment sellers, it becomes part of the longer term holding calculation.

When carrying costs rise, pressure builds to make clear strategic decisions rather than waiting indefinitely.

3. Speculation and Vacancy Tax Increase

For foreign owners and untaxed worldwide earners, the Speculation and Vacancy Tax increases from 3 percent to 4 percent in 2027.

A 4 percent annual tax on a multi million dollar property changes the math quickly.

For principal residences owned by local residents, nothing changes.

For investors holding vacant property, this increases pressure to either rent, sell, or move in.

Over time, that can create additional inventory movement.

4. Property Tax Deferment Changes

If you are eligible for the BC property tax deferment program, including homeowners aged 55 plus, surviving spouses, persons with disabilities, or families supporting children, there is an important shift.

New deferments from the 2026 tax year onward will:

• Move from simple interest to compound interest
• Be charged at prime plus 2 percent

That is a meaningful difference.

Deferment can still be a useful tool, but it is no longer inexpensive borrowing. For many downsizers, this may accelerate conversations about timing a move versus continuing to defer.

The Bigger Picture

None of these changes crash the market.

But they do increase friction.

And in real estate, friction changes behaviour.

Higher end property owners reassess holding strategy.
Investors rethink vacancy.
Some retirees reconsider timing.

That creates movement and opportunity, but only for sellers who are positioned correctly.

If you own property in Richmond or Greater Vancouver and want a clear breakdown of how this budget affects your specific situation, I am happy to walk through it with you. Contact us today, and let's make your real estate journey successful!

Michael Cowling
RE/MAX Michael Cowling & Associates Realty