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Canada: Tax measures in 2026 budget (British Columbia)

New investment tax credits, expanded sales tax, and a higher individual income tax rate

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february 19, 2026

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

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