May 2026
Dear CARP Members,
British Columbia seniors enrolled in the Property Tax Deferment Program should be aware of significant changes taking effect for the 2026 tax year.
If you are currently enrolled in the program and use automatic renewal, your 2026 taxes will be automatically deferred under the new rules unless you choose to opt out.
If you do not want your 2026 property taxes deferred under the new terms, please evaluate your financial situation and opt out before June 1, 2026
What is Changing in 2026?
Starting in the 2026 tax year, the British Columbia government is making significant changes to the Property Tax Deferment Program that will impact seniors (55+) and others using the program. The changes involve higher interest rates and a shift from simple to compound interest, making the program more expensive.
Key Changes Effective 2026:
- Interest Rate Hike: The interest rate for the Regular program will change from “prime minus 2%” to “prime plus 2%.”
- Compound Interest: Interest will now be compounded monthly rather than calculated as simple interest.
- Impact on Equity: The new, higher and compounded rates could cause the debt to grow significantly faster, potentially reducing a homeowner’s equity by up to 70% over 17 years, compared to 7% under the old system, according to tax experts.
These changes apply only to property taxes deferred in 2026 and future years. Taxes deferred in 2025 and earlier will continue under the previous interest terms.
More CARP’s View
CARP is deeply disappointed with the BC government’s decision to change the rules to this program.
The Property Tax Deferment Program was created to help seniors and other eligible homeowners who are “house rich but cash poor” to remain in their homes. It was intended as a practical aging in place tool, and not as a revenue generator for the government.
At a time when many seniors are already facing rising costs and increasing pressures on healthcare and long-term care systems, these changes make it much more difficult and expensive for older adults to remain in their homes.
The Program is Optional
The program remains available, but participation is entirely voluntary.
The program allows eligible seniors to defer payment of their annual property taxes, with the deferred amount repaid when the home is sold or transferred. For some homeowners, this can be a useful tool to help manage cash flow and support aging in place. For others, the higher interest costs may make it less attractive.
Every senior’s financial circumstances are unique. What works for one homeowner may not be the right choice for another. We encourage members to carefully consider how the program fits with their financial goals, estate plans, and overall comfort with carrying deferred tax obligations.
How to Opt Out of Automatic Renewal
You can opt out in one of two ways:
- Log in to your eTaxBC Property Tax Deferment account and submit a web message by selecting Contact the Ministry.
- Choose the message type Account Change.
- Use the subject line: Opt-Out Auto Renewal.Call the Province of British Columbia at 1-888-355-2700.
- Call the Province of British Columbia at 1-888-355-2700
Important to Know
- Opting out of automatic renewal does not require you to repay any previously deferred property tax loans immediately.
- If you opt out, you will need to pay your 2026 property taxes directly to your municipality or rural tax office by the regular due date to avoid penalties and interest.
- The BC Home Owner Grant for seniors 65 and older remains available for further annual tax reduction.
Learn More
For more information about the program, including eligibility requirements and how to opt out, please visit the Province of British Columbia’s website: B.C. Property Tax Deferment Program.
At CARP, we believe seniors deserve clear information and meaningful choices so they can make the decisions that are right for them.
Warm regards,
CARP National
CARP White Rock Surrey Chapter
CARP North Fraser Chapter
CARP Vancouver Island Chapter
CARP Vancouver Chapter
