Provincial Tax Deferment

Provincial Tax Deferment Plan

You may be eligible to defer payment of property taxes under the Land Tax Deferment Program if you are a taxpayer who is living in your own house and you are:

age 55 or over
a widow or widower, or
a person with a disability who is receiving a disability allowance or benefit under the Disability Benefits Program Act.

There is an initial fee of $60 charged by the Deferment Branch.

What types of homes qualify for tax deferment?

You can defer taxes on your home where you live and conduct your daily activities. For most applicants, this is the same property on which they claim the home owner grant.

You must have a minimum equity in your home of 25 per cent of the assessed value, as determined by the British Columbia Assessment Authority. This means your mortgage and any other charges registered against your property can be up to 75 per cent of the assessed value. If your home is a manufactured home, it must be covered by a current fire insurance policy.

If you own your home under a long-term lease, or have a life estate interest in your home, you may also qualify for tax deferment.

What Homes do not qualify?

Second residences such as summer cottages or property you have rented out do not qualify for tax deferment benefits.

How much of my taxes can I defer?

After deducting the home owner grant you receive on your taxes, you can defer all or part of the unpaid balance of your home's property taxes for the current year. If you rent out part of your home, you can defer taxes only on the part in which you are living.

Before applying for tax deferment you have to pay all property taxes, penalties and interest from previous years. User fees and utility charges on your property tax notice cannot be deferred.

How long can I defer my property taxes?

You can defer your taxes as long as you own and live in your home.

The deferred taxes must be fully repaid, with interest before your home can be legally transferred to a new owner, other than your surviving spouse; or upon the death of the agreement holder(s) - (repayment is made through the estate).

You may choose to repay all or any part of the deferred taxes and interest at any time without penalty.

What about interest charges?

Simple interest is charged on your deferment account at a rate not greater than two per cent below the prime rate at which the province borrows money. The interest rate is set every six months by the Minister of Finance and Corporate Relations.

You'll be charged interest from the date you apply to defer your taxes, or from the date your property tax is due - whichever is later.

How do I apply for tax deferment?

You can apply for tax deferment when you receive your property tax notice.

Complete and sign the Application for Deferment of Property Taxes. Contact the Taxation Clerk to have a form mailed to you.
Complete and sign your Home Owner Grant application.
Return the completed applications to your municipal or government agent office for processing before the property tax due date (ensure you pay your taxes for utilities). Your application will be forwarded to the tax deferment office in Victoria and acknowledged with a receipt.

When your application is approved, you will receive an Agreement for Deferment of Property Taxes.

Complete, sign and return the agreement to the tax deferment office in Victoria. All registered owners of your home must sign the agreement.

When your agreement is approved, the tax deferment office will pay your current property taxes to the municipal or government agent office. A one-time administration fee of $60 is added to new tax deferment agreements. The fee does not apply to annual agreement renewals.

Your deferred taxes and interest will be secured by a lien registered against your property in the Land Title Office or the Personal Property Registry. The lien will remain until the administration fee, deferred taxes and interest are fully repaid.

Additional Information

If, for any reason, your deferment application is withdrawn, cancelled or denied after the tax due date, your property taxes for the year are overdue and are subject to late payment penalties and interest.
You must apply to defer property taxes before December 31 of the year the taxes are first billed.

Agreement renewals are not automatic. A renewal application will be sent to you in April of each new tax year along with your annual account information

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Provincial Tax Deferment