The budget anticipates a deficit of $9.6 billion for 2025-26 and projects a deficit of $13.3 billion for 2026-27. Among other changes, the budget announces a new 15% temporary refundable B.C. manufacturing and processing investment tax credit,and harmonizes with the federal Scientific Research and Experimental Development (SR&ED) tax credit changes. British Columbia’s budget also expands the provincial sales tax (PST) to apply to certain professional services, and ends the PST exemption for other specified goods and services. The province also announced it will increase the lowest personal income tax rate to 5.6% (from 5.06%), effective for 2026.
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