If you own property in Langley, South Surrey, or anywhere across the Fraser Valley, the 2026 BC provincial budget just changed the math on your investment. Quietly tucked inside a sweeping fiscal plan designed to shore up provincial revenues is a series of tax changes that will raise operating costs for landlords, increase carrying expenses for luxury and acreage owners, and reshape the economics of holding undeveloped residential land. Here is what you need to know — and what you should be doing about it right now.
What Services Will Now Have PST Applied?
Effective October 1, 2026, BC PST on real estate services will apply to a range of professional services that property owners and managers rely on every day. The 2026 BC budget real estate changes specifically target:
BC property management PST — rental property management fees and strata management services
PST on brokerage fees in BC — commissions related to buying and selling non-residential real estate
Security services
Accounting services
Architectural, engineering and geoscience services — at a reduced rate of 2.1%
The standard rate is 7%. The BC government's justification is that BC currently has the narrowest sales tax base of any province that collects a provincial sales tax — and that most other provinces already tax professional services.
Unlike HST provinces, BC businesses and property owners cannot recover this cost through input tax credits. The PST is a hard, non-recoverable expense — one that flows directly into your operating budget starting this fall.
For investors exploring options in our Fraser Valley market, see our Langley Investment Properties and South Surrey Rental Properties pages for current listings.
How This Affects Landlords and Investors
The BC rental property tax increase is not limited to one line item — it is a stack of new costs arriving at once. As a landlord, virtually every third-party service you currently contract out will now carry an additional 7% charge. Consider the compounding effect:
Your property management company's monthly fee? Add 7%.
Your building's security contract? Add 7%.
Annual accounting and bookkeeping fees? Add 7%.
Any architectural or engineering work for renovations or maintenance? Add 2.1%.
This is how the 2026 BC budget affects real estate investors in real dollar terms: for a landlord spending $30,000 annually on property management, security and accounting combined, the new PST alone adds $2,100 in annual non-recoverable costs.
The question to ask yourself is whether your current rent structure and cap rate assumptions still hold. If operating costs are rising and rent increases are capped under the Residential Tenancy Act, the net operating income on your rental portfolio is compressing. This may be the right moment to review asset value and positioning.
Additional costs for BC landlords in 2026 also mean that multi-family properties with thin margins may need to be reassessed. Browse our current Multi-Family Listings and Pre-sale / Development Opportunities to understand what the market looks like right now.
School Tax Changes for Homes Over $3 Million
The second major change in the 2026 budget targets high-value properties. The BC school tax on homes over $3 million will increase substantially starting January 1, 2027.
Currently, residential properties assessed above $3 million are subject to a school tax surcharge of 0.2% on the portion of value up to $4 million, and 0.4% on the remainder above $4 million. Under the new rules:
The rate on assessed value between $3M and $4M increases from 0.2% to 0.3%
The rate on assessed value above $4M increases from 0.4% to 0.6%
For owners at the lower threshold, that translates to up to $999 more per year. For every $1 million of assessed value above $4 million, the additional annual tax exposure rises by $2,000. On a $6M property, that is roughly $5,000 in additional school tax annually versus today's rates.
BC luxury home property tax changes are not hypothetical — they take effect at the start of 2027, just over a year away. If you are holding a property in this range and considering your timeline, the window to act before these changes kick in is real.
View current Langley Luxury Homes and South Surrey Luxury Real Estate to explore your options.
What This Means for Luxury Acreage Owners
Owners of large acreage parcels — particularly those sitting on undeveloped or partially developed residential land — face a specific compounding risk under the 2026 budget. The BC school tax increase in 2027 applies to assessed value, not income-generating value. If you are holding raw land assessed above $3 million, you are paying a higher annual tax on an asset that may not be generating any income to offset it.
This matters a great deal in the Langley and South Surrey markets, where acreage assessed values have risen significantly over the past several years. Langley real estate taxes in 2026 are already a meaningful carrying cost — the 2027 school tax increase pushes that calculus further.
The provincial government has also changed how school property tax increases are calculated going forward. Instead of being tied to inflation plus new construction, increases will now track the three-year rolling average of nominal BC GDP growth. This means the tax base is designed to grow — not stabilize.
If you are holding undeveloped acreage at or near the $3M assessed value threshold, it is worth modeling your annual carrying cost trajectory over the next five years. The numbers may change your hold vs. sell decision significantly.
Explore our Langley Acreage for Sale listings and connect with us for a property-specific tax impact analysis.
Strategic Advice for Sellers in 2026–2027
These changes are not just background noise — they have direct implications for listing strategy, pricing, and timing. Here is how to think about them.
Pricing matters more than ever. As BC commercial real estate tax changes and residential carrying costs increase, buyer calculations are shifting. Properties priced at or near the top of market will face longer days on market as buyers factor in higher operating cost projections. Pricing sharply and correctly from day one is more important in this environment than in a rising-cost-of-waiting market.
Absorption rates matter. In a market where ownership costs are rising, absorption slows — meaning more competition among sellers for a smaller, more cost-sensitive buyer pool. Understanding current absorption rates in your submarket is essential context for any listing decision.
The school tax window is real. BC luxury home tax changes in 2027 are locked in pending formal adoption of the budget bill. If you own property above $3M and have been on the fence about timing, selling before January 1, 2027 means the buyer is acquiring under today's tax structure — which is a legitimate and honest part of the value narrative.
Holding undeveloped land is becoming more expensive. The combination of rising school taxes, non-recoverable PST on professional services, and a GDP-indexed future tax growth formula means the annual cost of sitting on undeveloped acreage will compound over time. If your development timeline has shifted or is uncertain, a hold vs. sell review is warranted.
For current data to inform your decision, view our latest Langley Real Estate Market Report and South Surrey Housing Update.
Final Thoughts: How to Position Yourself Properly
The 2026 BC budget real estate impacts are broader than a single headline. They represent a structural shift in the cost of owning, managing, and holding property in British Columbia. Whether you are a landlord managing a multi-family building in Langley, an investor holding acreage in South Surrey, or a luxury homeowner reassessing your portfolio — these changes affect your bottom line.
The right response is not panic, it is precision. Understanding exactly how much your costs are increasing, how your asset value holds up under new tax assumptions, and what your options look like in the current market is the foundation of a sound strategy.
That is the work we do with our clients. Not just listing property — but helping you understand the full financial picture so you can make the best decision for your situation.
Thinking about selling before Jan 2027 school tax adjustments? Let’s review your timing



































































