Finance Minister Brenda Bailey’s latest budget isn’t exactly a crowd-pleaser. With a record-shattering deficit on the books, the province is pivotting from “spend” to “save,” focusing on tax hikes and a slimmer public sector.
Thank you for reading this post, don't forget to subscribe!1. The Red Ink: Record Deficits
The province’s bank account is seeing more red than ever.
- The Deficit: A massive $13.3 billion for 2026–27—the largest in B.C. history.
- The Debt: Total provincial debt is on track to hit $235 billion by 2029.
- The Cost of Borrowing: We aren’t just in debt; it’s getting more expensive to keep it. Interest payments alone will cost taxpayers $3.8 billion this year.
2. Your Wallet: New Taxes & Hikes
The government is looking for revenue, and they’re finding it in your professional fees and paychecks.
- Income Tax: The base tax rate is climbing from 5.06% to 5.60%. While that’s only about $76/year for the average person, it’s a symbolic shift.
- The “Professional” PST: Expect to pay 7% PST on services that used to be exempt, including legal, accounting, and real estate fees.
- Luxury & Vacancy: The Speculation and Vacancy Tax for foreign owners is jumping to 4%, and high-value homeowners ($3M+) will see a bump in their school taxes.
3. Public Sector: “Doing More with Less”
After years of rapid growth, the B.C. public service is getting a trim.
- Job Reductions: The province plans to cut 15,000 positions over the next three years.
- The Strategy: The government is leaning on hiring freezes and natural attrition (not replacing people when they retire) rather than mass layoffs to hit this goal.
The Bottom Line: This budget is a sobering acknowledgement that B.C.’s recent spending levels were unsustainable. Between the higher cost of living and new service taxes, British Columbians will likely feel the squeeze throughout 2026.
