British Columbia Minister of Finance Brenda Bailey tabled the province’s 2026 budget on Tuesday, February 17, 2026. Titled Securing B.C.’s Future, the budget centres on protecting essential services and keeping taxes low for working families, while reinforcing the province’s long-term fiscal stability.

Framed as a “serious budget for serious times,” the 2026 B.C. Budget responds to ongoing economic uncertainty, rising service delivery costs, and a record provincial deficit. The government highlights a commitment to safeguarding core services, exercising disciplined spending, and pursuing targeted investments, while acknowledging there is limited capacity for new initiatives.

Read below for highlights of this year’s budget.

Key Highlights

1. Record Provincial Deficit

• The deficit is projected to reach $13.3 billion, a 38% increase from the previous year’s updated forecast of $9.6 billion.

2. Income Tax Changes

• The lowest income tax bracket rate increases by 0.54%, meaning roughly 60% of tax filers will see modest increases—about $76 more per year on average.
• Higher earners may see up to $201 in additional tax depending on income and credits.
• Some lower-income residents will pay less overall due to an expanded BC Tax Reduction Credit. 

3. PST Expansion

• Provincial Sales Tax expands to cover more professional services (e.g., accounting, engineering, architectural services) and removes exemptions on items like cable TV, landline services, and clothing repair materials. 

4. Spending Restraint & Delayed Capital Projects

• Construction of long-term care facilities, student housing, and the Burnaby hospital and cancer centre is delayed to limit costs.

5. Public Sector Hiring Freeze & Workforce Reduction

• The budget continues efforts to operate more efficiently through a hiring freeze and attrition, with the public service already reduced by over 1,500 employees since 2024. 

6. Protection of Core Services

Despite fiscal pressures, the government commits to shielding:

• Healthcare
• Education
• Public safety 

This aligns with the strategic focus outlined in the government’s broader Budget 2026 platform, emphasizing safeguarding services and disciplined financial planning.

7. Targeted Investments for the Future

• New investments include support for skills training, particularly trades training, to strengthen the province’s manufacturing sector. 
• The budget aims to stimulate economic growth while acknowledging weak 2026 economic forecasts. 

Overall Positioning of Budget 2026

The government frames the 2026 budget as a pragmatic, disciplined approach that prioritizes:

• managing a historic deficit,
• maintaining essential public services,
• updating the tax system,
• and preparing workers for the evolving economy.

Rather than bold new initiatives, the budget represents a step-back-and-stabilize strategy amid financial pressure and global uncertainty.

2026 BC Budget — Executive Summary

Fiscal Outlook

• Record provincial deficit of $13.3 billion, up 38% from the previous year’s $9.6B forecast. 
• The government frames the budget as “serious work for serious times”, prioritizing financial restraint in response to economic uncertainty. 

Tax Changes

• The lowest income tax bracket increases by 0.54 percentage points, raising average taxes by about $76 per year for most filers. 
• Higher earners may pay up to $201 in additional tax, depending on income and credits.
• Some lower-income taxpayers will pay less overall due to an expanded BC Tax Reduction Credit.
• PST (Provincial Sales Tax) expanded to more professional services—accounting, engineering, architectural, and some commercial real estate services—and removal of exemptions for cable TV, landlines, and certain clothing repair materials. 

Spending Restraint and Delays

• Major capital projects delayed, including:
  • Long-term care facilities
  • Student housing projects
  • Burnaby Hospital and Cancer Centre expansion
    These delays aim to curb rising costs. 

Public Sector Workforce Measures

• Continued hiring freeze and workforce reduction through attrition; public service is already down 1,500+ employees since 2024.
• Focus on operating more efficiently without major service cuts. 

Protected Core Services

• Despite fiscal pressure, the government commits to protecting:
  • Healthcare
  • Education
  • Public safety
    These remain priority areas for service continuity. 

Targeted Investments

• Skills and trades training investments to support manufacturing sector growth and prepare workers for emerging economic needs.
• Budget framed within a strategy focused on safeguarding services, managing expenses, and supporting long-term economic stability. 

To read the full Budget, please click here.