HOW DO I PAY MY PROPERTY TAXES?

In British Columbia, property taxes are due on the first business day of July and billed annually. Typically, you can expect to receive a copy of your property tax bill from your municipality (or the province if your property is rural) in late May to mid June. 

You can pay your property taxes to your municipality/province in either one lump sum (via online banking, cheque, in-person) or in many cases, you can pay in installments throughout the year. 

BC HOME OWNER GRANT

If the property is your primary residence, you are likely eligible for BC’s Home Owner Grant (HOG). The HOG reduces the amount of property taxes you pay each year. It is your responsibility to apply for this grant each year.

APPLY FOR THE HOME OWNER GRANT HERE

HOW DO I PAY IN INSTALLMENTS?

There are two ways you can pay in installments, either through your mortgage lender, or directly with your municipality/province.

While setting up installments with a lender may sound convenient, it is important to understand some of the potential pitfalls. When your lender collects and remits property taxes on your behalf, they are estimating the annual amount and dividing it into installments. If the estimate falls short, or if property taxes increase, this can result in a shortfall in your tax account. In that case, you may be required to make up the difference, incurring unnecessary interest, and higher installments the following year. 

Alternatively, most municipalities/province offer a very similar service, allowing you to set up automated installments. A “set it and forget it” option, with much less room for error as your installments are calculated and deposited directly with your tax authority.

HAVE INSTALLMENTS CURRENTLY SET UP WITH YOUR LENDER?

You can always request to be refunded the remaining balance in your property tax account (often by cheque or direct deposit). Then you can decide to set up installments with your municipality/province or set it aside for a lump sum payment come July. Feel free to reach out for assistance in making such a request with your lender.



FINDING YOUR TAX AUTHORITY

Below are links to many municipalities’ installment programs available on Vancouver Island:

• City of Nanaimo
• City of Victoria
• North Cowichan
• City of Duncan
• Town of Ladysmith
• District of Lantzville
• City of Parksville
• Town of Qualicum Beach
• City of Port Alberni
• City of Courtenay
• Town of Comox
• City of Campbell River

• Rural BC (including RDN)

Please reach out if you need help finding your tax authority.

PURCHASING A NEW HOME

If you are purchasing a home in January - June (prior to the July due date), you will receive a credit from the sellers for their portion of the property taxes for that year. This will be outlined on your Statement of Adjustments at your solicitor’s office at closing. Among so many other line items (e.g. down payment, deposit, legal fees, etc.), this can be easy to miss.

To avoid surprises, be sure to note the credit amount on your Statement of Adjustments, as you’ll want to set those funds aside. When property taxes come due in July, you will be responsible for the full balance (which includes the amount you were credited).