Canada: Tax measures in 2026 budget (British Columbia)
New investment tax credits, expanded sales tax, and a higher individual income tax rate
British Columbia’s Finance Minister presented the province’s 2026 budget on February 17, 2026, outlining several key tax proposals:
- Introduction of a new 15% temporary refundable British Columbia manufacturing and processing investment tax credit
- Alignment of the provincial scientific research and experimental development (SR&ED) tax credit with recent federal changes
- Expansion of the provincial sales tax (PST) to cover certain professional services
- Removal of PST exemptions for other specified goods and services
- Increase of the lowest individual (personal) income tax rate to 5.6% (from 5.06%), effective for 2026
Read a February 2026 report prepared by the KPMG member firm in Canada