B.C.’s PST will be expanded to more areas of the economy in 2026, especially for real estate
There will be an expansion of the PST to cover a wider range of professional services, including accounting, bookkeeping, architectural design, engineering, geoscience, rental property and strata management, transaction commissions related to buying and selling non-residential real estate, and private investigation.
More specifically, the PST on architectural design, engineering, and geoscience services will apply to 30 per cent of the purchase price of the services.
Furthermore, the PST exemption will be eliminated for basic cable television services, toll-free telephone services, and residential landline telephone services, as well as for clothing patterns, yarn, natural fibres, synthetic thread, and fabric that are commonly used in making or repairing clothing, and for other services related to clothing and footwear.
According to the Government of B.C.’s 2026 budget announcement today, the expansion of the PST to include these services is “generally consistent with how [the] tax applies to these services in most provinces.”
The changes to the PST are deemed to be one of a number of strategies to help the provincial government narrow the gap in its structural deficit issues. The operating budget deficit for the 2026/2027 fiscal year is expected to reach an all-time historic record of $13.3 billion, with a complete mismatch of revenues with continued increased spending compared to 2025/2026.
The provincial government expects the expansion of the PST to include select professional services, which will increase revenues by $261 million in 2026/2027, $534 million in 2027/2028, and $563 million in 2028/2029. For the eliminated exemptions, this will increase revenue by $23 million in 2026/2027, $44 million in 2027/2028, and $43 million in 2028/2029.
Additionally, there will also be increases to B.C.’s Personal Income Tax starting this summer, and the School Tax — a provincial property tax — and the Speculation and Vacancy Tax beginning in 2027. Some changes will also be made to the Property Tax Deferment Program.
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