British Columbia raises income taxes and expands sales tax, cutting public jobs to address a record $13.3 billion deficit starting July 1, 2026.

Starting July 1, 2026, British Columbia will raise its personal income tax rate on the first $50,363 of taxable income from 5.06% to 5.6%, increasing average taxes by about $76 annually. To offset the hike, the B.C. tax reduction credit will rise to a maximum of $690 for low- and middle-income earners. The province also eliminated PST exemptions on services like accounting and real estate fees, and expanded the sales tax to new areas. The deficit is projected to reach $13.3 billion in 2026/27, the highest in B.C.’s history, while the government plans to cut 15,000 public sector jobs over three years.