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The British Columbia flies on a flagpole, with blue skies and the BC Parliament building in Victoria, BC in the background.

2024 BC Budget Highlights

February 26, 2024

The British Columbia government unveiled its 2024 provincial budget on February 23, providing a broad blueprint aimed at addressing affordability, enhancing public services, and fostering economic and environmental sustainability.

The 2024 BC Budget introduces changes for certain taxes, including property taxes and various acts. No corporate or personal income tax rate changes were announced as part of the February 23 release—visit our Tax Rates page for the current and past federal and provincial combined income tax rates.

Financial Overview

The 2024 budget projects deficits of $7.9 billion for 2024-25, reducing to $6.3 billion by 2026-27, with a $13 billion increase in operating funding over three years to support service needs and new priorities. Despite these deficits, the government emphasizes its commitment to affordability, healthcare, education, and environmental sustainability as pivotal to building a strong and inclusive economy​​​​.

Tax measures and other changes announced include:

Affordability Measures

  • BC Family Benefit Bonus: Families will receive a 25% increase in their monthly BC Family Benefit for the 2024-25 benefit year. This enhancement is supplemented by a $248 million allocation for a one-year BC Family Benefit Bonus starting with payments beginning in July 2024. A family of four could now receive up to $3,563 annually.
  • Electricity Affordability Credit: A new one-time BC Electricity Affordability Credit is introduced, expected to save households an average of $100 and small businesses around $400 annually on their electricity bills starting April 2024.
  • Climate Action Tax Credit Boost: The quarterly BC Climate Action Tax Credit payments will increase starting July 1, 2024. Individuals can expect to receive $504 as a single person, $252 for a spouse or common-law partner (or for the first child in a single parent family), and $126 for each child (except the first child in a single parent family). People earning $41,071 or below and families earning $57,288 or below can expect to receive the maximum benefit, with the benefit amount being reduced up to a certain threshold.
  • BC Renter’s Tax Credit: For 2023 and subsequent tax years, a new up to $400 renter’s tax credit is introduced for eligible tenants who rented and occupied an eligible rental unit​​​​.

Housing Measures

  • BC Home Flipping Tax: Set to take effect on January 1, 2025, the BC Home Flipping Tax aims to curb speculative home flipping. The tax rate will be 20% for properties sold within 365 days of purchase, with a decreasing rate to zero by day 730 (2 years), subject to certain exemptions.
  • Speculation and Vacancy Tax: Beginning January 1, 2024, individuals holding residential properties via registered leases with the Land Title and Survey Authority of British Columbia will be recognized as the property’s registered occupiers for purposes of the Speculation and Vacancy Tax. Those holding such leases, who exercise control over the property’s usage, will bear responsibility for this tax. Leaseholders not previously obligated to report will make their initial declarations in 2025, reflecting the property’s use throughout 2024.

Property Transfer Tax Measures

Business Tax Measures

  • Employer Health Tax Exemption: The exemption threshold for the Employer Health Tax has been doubled from $500,000 to $1 million, exempting 90% of businesses and expected to save them over $100 million annually.
  • PST Refund on Goods Purchased for Resale: Starting July 1, 2024, amendments to the Provincial Sales Tax Act will limit the availability of PST refunds for individuals who appear to be the final buyers of goods but are in fact purchasing the goods for resale outside of British Columbia.
  • Training Tax Credits: The training tax credit for employers has been extended for an additional three years to the end of 2027, and the training tax credit for apprentices has been extended one year to the end of 2025.
  • Mining Exploration Tax Credit: Beginning February 23, 2024, oil and gas exploration expenditures will no longer qualify for the Mining Exploration Tax Credit.
  • Film and Television Tax Credit (FTTC) and Production Services Tax Credit (PSTC): Starting from productions that initiate principal photography post-May 31, 2024, animation projects will be ineligible for the regional and distant location tax incentives available under the FTTC and PSTC. However, these animation productions will continue to qualify for the basic tax credits provided by both the FTTC and PSTC, in addition to the tax credit for digital animation, visual effects, and post-production services in BC.
  • Interactive Digital Media Tax Credit: Starting September 1, 2024, products related to currency gambling will be excluded from eligibility for the Interactive Digital Media Tax Credit.

For a more detailed list of the tax measures and changes announced on February 23, visit the Government of BC website. Contact your DMCL advisor if you have any questions about how these changes might affect you.