The Property Tax Deferral Program is a provincial loan program offered by the Government of British Columbia that helps eligible homeowners delay payment of their annual current property taxes.

What the BC Property Tax Deferral Program Is

Here’s how it works:

• Instead of paying your property taxes by the usual due date, the province pays those taxes on your behalf.
• A repayable loan is registered against your property (a restrictive lien), which stays until the deferred taxes plus interest are paid back (usually when you sell the home or pay off the loan).
• This allows homeowners—often those on fixed or limited incomes—to stay in their homes without having to sell or liquidate other assets to pay taxes.

Who Can Apply?

There are a couple of main streams:

1. Regular Program – for seniors (55+), surviving spouses, or people with disabilities.
2. Families with Children Program – for eligible parents or guardians supporting children under 18.

To qualify, applicants must meet certain requirements such as:

• Owning and living in the property as their principal residence.
• Maintaining a minimum equity threshold (a portion of the home’s value that the homeowner owns free of liens and mortgages, after the deferment).

You apply (or renew) online through the provincial portal usually May 1 – December 31 each year.

What the Recent Changes Are (2026 Budget)

In the 2026 B.C. Budget, the government announced changes to the interest rate structure of the property tax deferment program. These changes affect all amounts deferred for the 2026 and later tax years (pending legislative approval).

Interest Rate Changes

Before the change:

• Deferred taxes were charged interest at Prime minus 2% using simple interest (meaning interest was not charged on accumulated interest).

After the change (starting 2026 amounts):

• Interest rates for both the Regular and Families with Children programs are now set at Prime + 2 % and are compounded monthly.
  • Prime + 2 % means the interest cost is higher than before.
  • Compounding monthly means interest accumulates on both the deferred tax amount and on the interest already added. This increases the total owed over time compared with simple interest.

Key points:

• The new interest terms only apply to taxes deferred in 2026 and after.
• Taxes deferred in earlier years remain under the old interest terms.

Application Timing

• The application period continues to open each year from May 1 to December 31.

Why These Changes Matter

• Higher and compounding interest means the overall cost of deferring taxes will grow faster over time than under the previous terms.
• The policy shift is intended to align the program with broader lending practices and reduce the financial cost to the province.
• The changes affect future deferrals but not existing ones from before 2026.