2023 BC Budget Highlights
On February 28, 2023, the Honourable Katrine Conroy, BC’s Minister of Finance, announced several changes to provincial tax laws as part of BC’s 2023 Budget. The 2023 BC Budget is titled StrongerBC, for everyone and focuses on 6 main areas:
- Health and mental-health care
- Helping with costs
- Affordable and attainable housing
- Safe and healthy communities
- Skills for future jobs
- Clean, sustainable development
The 2023 BC Budget introduces changes for certain taxes, including property taxes, sales taxes and various acts. No corporate or personal income tax rate changes were announced as part of the February 28 release.
Other tax measures and tax changes announced include:
- Starting on July 1, 2023, the B.C. Family Benefit will receive a permanent increase. The maximum benefits will increase to:
- $145.83 per month for the first child
- $91.67 per month for the second child
- $75 per month for each additional child
- Effective July 1, 2023, the B.C. Climate Action Tax Credit will be increased. The threshold amounts increase to $39,115 for individuals and $50,170 for families. The maximum annual amounts increase to:
- $447 for the individual
- $223.50 for a spouse or common-law partner (or the first child in a single parent family)
- $111.50 for each child (excluding the first child in a single parent family)
- To support households within a specific income bracket, an annual Renter’s Tax Credit has been introduced which will go into effect on January 1, 2023. The maximum amount is $400 per year, and the threshold is less than $80,000 for 2023, with adjustments for inflation in the future.
- The Interactive Digital Media Tax Credit has been extended through August 31, 2028
- The Farmer’s Food Donation Tax Credit has been extended to 2026
- The carbon tax rates will rise by $15 per tonne of carbon dioxide equivalent emissions starting April 1, 2023, and will continue to increase until reaching $170 per tonne by 2030. Effective April 1, 2024, an output-based pricing system will be implemented for large industrial operations.
- Certain online marketplace activities will be subject to amendments to the Provincial Sale Tax Act as of July 1, 2023.
- Effective for transactions that occur on or after January 1, 2024, new purpose-built rental buildings will receive a partial exemption under the Property Transfer Tax Act.
We’ll provide more updates on the 2023 BC Budget as they become available. For a more detailed list of the tax measures and changes announced on February 28, visit the Government of BC website. Contact your DMCL advisor if you have any questions about how these changes might affect you.