Tax Highlights from the 2025 British Columbia Budget

​The 2025 British Columbia Budget, presented by Finance Minister Brenda Bailey on March 4, 2025, outlines several fiscal measures and projections for the province.​

Economic Outlook and Fiscal Projections

The budget forecasts a deficit of $10.9 billion for the 2025/26 fiscal year, with subsequent deficits of $10.2 billion for 2026/27 and $9.9 billion for 2027/28. The anticipated deficit for the nearly concluded 2024/25 fiscal year is $9.1 billion, exceeding the initially projected $7.9 billion. British Columbia's real GDP is projected to grow by 1.8% in 2025 and 1.9% in 2026, amid factors such as slowing immigration, ongoing trade uncertainties, decreasing inflation, and resilient housing construction. ​CI Financial

Personal Tax Measures

• Income Tax Rates and Brackets: There are no changes to personal income tax rates for 2025. However, tax brackets and other amounts have been indexed by 2.8% to account for inflation. ​CI Financial

• Climate Action Tax Credit: Despite the annual increase to the carbon tax of $15/tonne, the climate action tax credit amounts will remain unchanged at the 2024/25 rates. The current tax credit amounts are $504 for an adult, $252 for a spouse or common-law partner, and $126 per child. ​MNP.ca+1Wikipedia+1

Corporate Tax Measures

• Corporate Income Tax Rates: No changes have been proposed to corporate income tax rates. The general rate remains at 12%, and the small business rate at 2%, with a small business limit of $500,000. ​KPMG Assets

• Film and Media Tax Credits:

  • Film Incentive BC Tax Credit: The basic credit for Canadian content productions will increase from 35% to 40%, effective for productions with principal photography beginning on or after January 1, 2025. ​KPMG Assets+1MNP.ca+1

  • Production Services Tax Credit: To attract more international projects, this credit will rise from 28% to 36%, applicable to productions with principal photography starting on or after January 1, 2025. ​KPMG Assets

  • Major Production Tax Credit: A new 2% credit is introduced for productions with British Columbia production costs exceeding $200 million, available upon completion of the major production. ​MNP.ca+2PwC+2KPMG Assets+2

• Interactive Digital Media Tax Credit: The interactive digital media tax credit will increase to 25% (from 17.5%) for eligible salaries and wages paid in B.C. on or after September 1, 2025. The budget also proposes to make the credit permanent (originally scheduled to end by September 1, 2028). ​MNP.ca+1KPMG Assets+1

Other Notable Measures

• ICBC Rebate: To assist with rising costs, a one-time relief rebate of $110 will be provided to eligible policyholders, returning approximately $410 million to personal and commercial policyholders. ​

• Speculation and Vacancy Tax: Effective January 1, 2026, the tax rate for Canadian citizens and permanent residents who are not untaxed worldwide earners will increase from 0.5% to 1%. For foreign owners and untaxed worldwide earners, the rate will rise from 2% to 3%. Additionally, the non-refundable speculation and vacancy tax credit for British Columbia residents will increase from $2,000 to $4,000. ​KPMG Assets

These measures reflect the province's efforts to balance fiscal responsibility with support for key industries and residents.