Changes to B.C.’s Property Tax Deferment Program: What Homeowners Should Know

British Columbia’s Property Tax Deferment Program allows eligible homeowners—such as seniors, persons with disabilities, and some families with children—to postpone paying their annual property taxes. Instead, the provincial government pays the taxes on the homeowner’s behalf and registers the amount as a loan against the property, which is typically repaid when the home is sold or transferred. Interest is charged on the deferred amount starting from the tax due date (or the application date, whichever is later), along with certain administrative fees. Historically, interest has been calculated using simple interest (not compounded) at a rate up to 2% below the bank’s prime rate, making the program a relatively inexpensive financing option.

What Is Changing in 2026?

Beginning with 2026 property taxes, the province will change how interest is calculated on newly deferred taxes:

• Deferred taxes will accrue compound interest at Prime + 2%
• Existing balances from 2025 and earlier will not be affected
• The new rate will apply only to taxes deferred in 2026 or later

This change means the program will no longer offer the same below-prime borrowing cost that homeowners previously enjoyed.
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Refer to the official Government of British Columbia page:  Property Tax Deferment Interest and Fees.