Last updated: Apr. 2, 2025 

B.C. Budget 2025 Highlights

On March 4, 2025, B.C. Finance Minister Brenda Bailey tabled the 2025 Budget, titled Standing for a Strong B.C. The Budget focuses on economic growth, attracting investment, and strengthening public services. However, it projects significant deficits for the next three years:

Year	Projected Deficit
2024-25	($9.1 billion)
2025-26	($10.9 billion)
2026-27	($10.2 billion)

While no changes to corporate or personal tax rates were introduced, the Budget includes increases to property taxes on vacant homes, new tax credits for businesses, and trade measures to address U.S. tariffs.

 Top 3 Things Small Business Owners, Farmers & Individuals Should Know

 1, Property & Real Estate Tax Increases

• Speculation & Vacancy Tax Rate Increases (Effective January 1, 2026):
  • Canadian citizens & permanent residents (not classified as untaxed worldwide earners): Increase from 0.5% to 1%.
  • Foreign owners & untaxed worldwide earners: Increase from 2% to 3%.
• Speculation & Vacancy Tax Credit for B.C. Residents: Doubles from $2,000 to $4,000.
• First Nations Property Transfer Tax Exemption: Effective May 21, 2024, First Nations are exempt from property transfer tax when legally transferring property they already beneficially own.
• New Property Tax Exemptions for Modern Treaty First Nations (2026 Tax Year):
  • Certain rural properties will be exempt from property tax when owned by Modern Treaty First Nations.
  • First Nations community and cultural properties will be exempt from rural property tax.

 2. Business Tax Credits & Support for Small Businesses

• No changes to corporate tax rates, but several new tax credits benefit small businesses:
  • Small Business Venture Capital Tax Credit limit increases to $300,000 (from $120,000).
  • Interactive Digital Media Tax Credit increases to 25% (from 17.5%) and is now permanent.
  • Higher tax credits for film & digital production encourage media businesses in B.C.

 3. Trade & Economic Uncertainty Due to U.S. Tariffs

• The Budget plans for potential U.S. tariffs that could impact agriculture, energy, and exports.
• The province is expanding trade markets and preparing for Canadian countermeasures to protect local businesses and workers.
• Farmers and exporters should monitor government support programs for affected industries.

 Other Key Budget Updates

 For Homeowners & Property Investors

• Speculation & Vacancy Tax Rate Increases (2026): Higher taxes for non-resident property owners.
• First Nations property exemptions aim to reduce barriers for Indigenous land ownership.

 For Small Business Owners 

• Corporate tax rates remain unchanged:
  • Small businesses (≤ $500,000 revenue): 2% B.C. corporate tax rate (11% combined federal & B.C.).
  • General corporate tax: 12% B.C. (27% combined federal & B.C.).
• Tax credits expanded for venture capital, media production, and clean energy businesses.

 For Farmers & Exporters 

• U.S. tariff risks could impact agricultural trade.
• New Mine Allowance extended to 2030, supporting B.C.’s resource industries.

 For Individuals 

• No personal income tax rate changes.
• B.C. Family Benefit expanded to provide support for six months after a child’s passing.
• Provincial sales tax exemption for used zero-emission vehicles eliminated (May 1, 2025).

Final Thoughts

For small business owners, farmers, and individuals, this Budget maintains stability in tax rates but increases costs on property and introduces new business incentives. With trade uncertainty, B.C. businesses should prepare for potential U.S. tariffs and take advantage of tax credits for growth and expansion.

About FBC

With more than 70 years of Canadian tax experience, we offer unlimited tax preparation help, support and tax advice for one flat fee. Our tax experts will run the numbers to create a custom tax return that helps minimize headaches and maximize your tax savings.

Leave your unique tax situation to us. We’ll get you every dollar you deserve. Book online or call us at 1-800-265-1002.