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Tax deferment in BC usually means the province’s property tax deferment program, which is a loan: the government pays your property tax bill and you repay it later with interest. It’s open to homeowners who are 55 or older, surviving spouses, people with disabilities and parents supporting children. Income tax has no matching program.
Who can defer property tax in BC?
There are two streams, and the rules differ in ways that matter. The regular program is for people 55 or older in the year, surviving spouses and people with a severe, lasting disability. The families with children program is for parents, stepparents and others supporting a child under 18, a student of any age or a child with a disability.
The home has to be your principal residence, classed as residential or residential and farm. Cottages and rentals don’t qualify. You also need to have paid all earlier years’ property tax, utility fees, penalties and interest, so you can’t use it to dig out of a backlog.
| Item | Regular program | Families with children |
|---|---|---|
| Minimum equity in the home | 25% | 15% |
| Debt plus deferred tax, at most | 75% of assessed value | 85% of assessed value |
| Interest from 2026 deferrals | Prime plus 2%, compounded monthly | Prime plus 2%, compounded monthly |
| Fees | $60 to apply, $10 a year to renew | None |
| When to apply | May 1 to December 31 | May 1 to December 31 |
What does deferring actually cost?
More than most people expect, because the interest compounds. We can’t give you the current rate, since it moves with the prime rate of the province’s bank, and we didn’t find a figure we could confirm for today. So here’s an illustration with an assumed 6% a year, not the real rate.
Defer $3,000 of tax and after a year the balance is about $3,185. After five years it’s about $4,047, and that’s before any new deferral. Fees are added to the loan too. The loan is usually repaid when the property is sold or the agreement ends, so the cost sits quietly until then.
The equity rule is easy to test. On a home assessed at $900,000, the regular program lets total charges plus the deferred tax reach $675,000, and the families program $765,000. A big mortgage can rule you out.
Can you defer income tax in BC?
Not by a program, no. Your filing date is April 30, or June 15 if you or your spouse is self-employed, but any balance owing is still due April 30. Late payment brings interest, and it can also hold up benefit payments.
If you can’t pay in full, call or use My Account and ask the CRA for a payment arrangement. You pay smaller amounts over time until the debt and its interest are cleared, and you may have to show your income, expenses and assets. File on time even when you can’t pay. A missed return is a separate problem from a missed payment.
To see how big the bill will be before it arrives, run the income tax calculator. If you’re self-employed or have income without tax withheld, the tax instalments calculator shows if you should be paying through the year instead of in a lump.
Should you defer, or pay in another way?
That comes down to what else you could do with the money. Deferring makes sense for a retired owner with plenty of equity and a modest pension, and it makes less sense if you’ll sell in two years anyway. Compare the loan’s interest with any other borrowing, and check your yearly bill first with the property tax calculator.
Deferring also shrinks what you leave behind or take from a sale, which is a fair reason to talk it over with family. It’s a loan against your home, whatever the program calls it.
Where do these details come from?
Program rules, fees and interest terms come from the Province of British Columbia’s property tax deferment pages, and filing dates and payment arrangements from the Canada Revenue Agency, all read in September 2026. Check the province’s page for the current interest rate before you apply. This website has no connection with the CRA or any government body.
Frequently asked questions
Who qualifies for BC property tax deferment?
Homeowners 55 or older, surviving spouses, people with severe disabilities and parents supporting a child can apply, if the home is their principal residence and past taxes are paid.
When can I apply for the BC deferment program?
Applications and renewals run from May 1 to December 31 each year, through eTaxBC.
Does deferred property tax charge interest?
Yes. For 2026 and later deferrals it is prime plus 2%, compounded monthly, and the regular program adds a $60 application fee and $10 a year to renew.
Can I defer income tax in BC?
There is no deferral program for it. If you can't pay, ask the CRA for a payment arrangement and still file by the due date.
When is deferred property tax repaid?
Usually when you sell the home or the agreement ends, including when the owner dies.
- How Canadian income tax works: brackets and credits
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- British Columbia income tax and PST in 2026
How British Columbia income tax works in 2026: seven brackets starting at 5.6%, the tax reduction credit, the 7% PST and the BC calculators
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.