B.C. hikes tax rate as budget delivers record $13 billion deficit

By Canadian Press on February 17, 2026.

VICTORIA — British Columbia Finance Minister Brenda Bailey has unveiled what she calls a “serious” budget for 2026 that raises the base income tax rate while failing to rein in the deficit as previously pledged.

The tax rate on the lowest bracket is being increased by 0.54 per cent, with government staff saying 60 per cent of tax filers will face higher bills, and the average taxpayer will be hit with a $76 hike.

The budget says increasing the bottom tax rate to 5.6 per cent means a maximum impact of $201 on people earning more than $140,000 without additional credits, while credits for some lower earners are being raised.

Construction of long-term care facilities, student housing and Burnaby’s hospital and cancer facility are being delayed to curtail costs.

The deficit is projected to spike by a hefty 38 per cent to a record $13.3 billion next fiscal year, compared with an updated forecast for the current year of $9.6 billion.

Bailey’s budget speech says she is delivering the plan with a “heavy heart” after the “horrific tragedy” of last week’s mass shootings in Tumbler Ridge, B.C.

This report by The Canadian Press was first published Feb. 17, 2026.

Wolfgang Depner, The Canadian Press