British Columbia 2026 Budget: Updates To PST

On February 17, 2026, British Columbia (“BC”) Minister of Finance Brenda Bailey tabled the 2026 provincial budget (the “2026 Budget”), which will expand the scope of services subject to provincial sales tax (“PST”) while eliminating certain exemptions from PST.  The 2026 Budget also remedies one longstanding issue for purchasers acquiring goods in BC for use outside the province.  A brief summary of the key PST changes announced in the 2026 Budget are set out below.

Expanding the PST Tax Base

Introduced in 1948, BC’s PST has primarily applied to the sale of goods. However, reflecting the province’s shift toward a more service‑based economy, the 2026 Budget will expand the PST base to cover certain services, aligning BC more closely with other provinces imposing a sales tax. Effective October 1, 2026, the PST will apply at a rate of 7% to the following services.