Falling Assessments vs Rising Taxes, and HOg threshold adjustment

While a drop in BC Assessment values might seem like an automatic tax relief for homeowners, the reality is more nuanced. For the 2026 property tax year, many homes in the Lower Mainland saw assessed values decline by up to 10% due to a softening real estate market.

However, municipal governments still set property tax rates based on the total revenue needed to fund local services. This often results in a “revenue-neutral” adjustment, meaning your taxes may not decrease proportionally with your assessment.

Why Your Property Taxes Might Still Rise

It’s important to understand that an increase or decrease in your property’s assessed value does not automatically determine your tax bill. Taxes are calculated relative to the average change in property values across your municipality.

For example:  If your home’s value fell by only 2%, but your neighbors’ properties fell by an average of 8%, your share of the municipal tax pool has effectively increased.  In this scenario, even with a lower assessment, you could see a higher property tax bill because your property now represents a larger relative portion of the community’s total taxable value.

Home Owner Grant Threshold Adjustments

The provincial government has adjusted the Home Owner Grant (HOG) eligibility to reflect these market changes. For 2026, the maximum property value for the full HOG was lowered from $2.175 million to $2.075 million.  This $100,000 reduction ensures the grant continues to target the same proportion of homeowners as in previous years. However, homeowners whose properties declined less than the provincial average may see a partial or full loss of the grant.

The adjustment highlights the importance of checking your eligibility early to avoid surprises on your property tax bill. Click here for more details.