Changes to the BC Property Tax Deferment Program

The BC Property Tax Deferment Program has long been a useful planning tool for many homeowners, particularly seniors and families, by allowing property taxes to be deferred at a low interest rate. This program has helped improve annual cash flow and supported retirees who wish to remain in their homes. Unlike similar programs in other provinces, there is no income test to qualify.

To be eligible for the Regular BC Property Tax Deferment Program, a homeowner must be:

• Age 55 or older during the current year,

• A surviving spouse of any age, or

• A person with disabilities.

What’s Changing?

On February 17, 2026, the BC government tabled its provincial budget, proposing changes to the interest rate structure of the Property Tax Deferment Program.

Key proposed changes under the Regular Program:

• For property taxes deferred in 2026 and future years

  • Interest rate will increase to Prime + 2%

  • Interest will be compounded monthly

  
  

  For property taxes deferred in 2025 and earlier years (no change)

  • Interest will continue at Prime – 2%

  • Interest will remain simple (non‑compounding)

In practical terms, future deferrals will be significantly more expensive over time than in the past.

What This Means for Homeowners

With higher and compounded interest, some homeowners may decide that continuing to defer property taxes is no longer as attractive as it once was. For those considering opting out:

• Annual cash flow needs may increase, as property taxes would need to be paid directly rather than deferred.

• Homeowners enrolled in automatic renewal should be aware that their property taxes will continue to be deferred under the new terms unless they actively opt out.

• Opting out of automatic renewal does not require immediate repayment of previously deferred taxes. However, current property taxes must be paid by the due date to avoid penalties and interest.

  
  

Instructions on how to opt out of automatic renewal, along with additional details, are available on the Government of BC website.

Planning Ahead

Given the proposed changes, the BC Property Tax Deferment Program will likely be far less advantageous going forward due to the higher interest rate and the move to monthly compounding. As a result, we would generally not recommend continuing to apply for new deferrals starting in 2026 as part of a long‑term planning strategy.

That said, amounts deferred for 2025 and prior years can be left in place under the original terms, continuing to accrue interest at Prime minus 2% on a simple interest basis. There is no requirement to repay those balances simply because future deferrals are discontinued.

Please feel free to reach out to our planning team to discuss your specific situation.

-Your Creed Capital Management Team