The 2026 BC Budget & PST

The 2026 provincial budget proposed a significant expansion of BC’s Provincial Sales Tax (PST) to cover a range of professional services for the first time. Since the announcement in February, our team, along with brokerages and industry associations across the Province, has been actively seeking clarity from government on exactly how these changes will affect residential strata corporations. We want to share what we know, what we don’t, and what your council should be thinking about as you plan your upcoming budget. 

What’s Being Proposed 

Subject to Royal Assent of Bill 2 (the Budget Measures Implementation Act, 2026), a 7% PST would apply to several categories of professional services effective October 1, 2026. The newly taxable services include accounting and bookkeeping, architectural services, engineering and geoscience, security and private investigation, and the one that caught our industry’s attention, “non-residential real estate services, including trading services, rental property management services and strata management services.” 

That last phrase is doing a lot of heavy lifting, and it’s where the uncertainty lies. 

Our Management Fees: Good Reason for Cautious Optimism 

The government’s own language draws a clear line: the PST expansion targets non-residential real estate services. The BC Ministry of Finance’s Rulings and Interpretations Team has indicated that changes do not apply to residential real estate services, which would continue to be treated as non-taxable. 

We have good reason to believe that residential strata management fees will remain exempt. However, and we want to be direct about this, we have not been able to obtain a formal, binding interpretation that specifically addresses “residential strata management” by name. The industry’s associations and brokerages have sought that clarity; it has not yet been provided. The budget legislation has not yet received Royal Assent, and the detailed regulations that will define the precise scope of exemptions have not been released. 

Until we have that certainty, we think it’s important to be transparent: we believe our fees will likely remain PST-exempt for residential buildings, but we cannot guarantee it. 

What we *do not know* is how this will apply to mix-used buildings that are not entirely residential.  Most notably, we do not know if PST applies to strata management fees for mixed use developments. 

Where PST Will Almost Certainly Apply 

Regardless of how strata management fees are ultimately treated, several other line items in your strata’s operating budget are likely to be affected come October 1. These are worth considering now if your AGM is approaching: 

Accounting and bookkeeping services — Your strata’s year-end audit or review engagement will likely attract an additional 7% PST on the professional fees. 

Engineering services — Depreciation reports, building envelope assessments, structural engineering consultations, and similar professional engagements will be subject to PST, though at a reduced effective rate (the tax applies to only 30% of the fee, resulting in an effective rate of about 2.1%). 

Security services — If your building contracts security patrols, concierge, or monitoring services from a private security firm, those fees will likely be subject to the full 7% PST. 

Architectural services — Any architectural work related to building renovations or major projects will also be taxed at the reduced effective rate of approximately 2.1%. 

It’s worth noting that some common strata expenses are not affected by these changes. Electricity from BC Hydro has been fully PST-exempt since April 2019, and natural gas for residential use (such as FortisBC) is also exempt from PST under existing residential energy exemptions. General maintenance and repair work performed on-site to real property — your plumber fixing a pipe, your roofer replacing shingles — has not been subject to PST under existing rules, and that is not changing. The materials contractors use do attract PST, but that cost has always been embedded in their pricing. 

So, What Should Councils Do? 

This is an important point: these are council decisions, not ours. Our role is to give you the most accurate information we have and to be honest about what remains uncertain. It is your council’s call whether to budget conservatively or not. 

There are reasonable arguments on both sides. A council preparing a budget today could choose to include a modest contingency, perhaps a line item or a small buffer on affected service categories, to absorb potential PST costs if the tax does apply more broadly than expected. Alternatively, a council might decide the likelihood is low enough that budgeting for it isn’t warranted, particularly if doing so would mean a larger-than-necessary increase to strata fees.  Note that the October 1st 2026 implementation date is critical: if you are budgeting now, it is likely that only a few months of the PST addition will hit your books. 

We are not in a position to make that call for you, and we think it would be wrong to present a guess as certainty. What we can tell you is that the coming months should bring more clarity, as the legislation moves toward Royal Assent and the government releases detailed regulations. 

We’re Staying on Top of It 

We are in ongoing discussions with our industry partners and monitoring the situation closely. As soon as we have definitive guidance, we will share it. In the meantime, if your AGM is coming up and you’d like to talk through how to approach your budget in light of these changes, please reach out to your property manager. We’re here to help you make an informed decision — whatever that decision may be. 

This post is for general information only and does not constitute legal or tax advice. Strata councils with specific concerns should consult a qualified tax professional or legal advisor.