B.C. Conservatives promise $1,000 annual tax cut by raising tax-free amount

The Conservative Party of British Columbia says it would reduce provincial income taxes by about $1,000 a year for eligible residents by raising the basic personal amount from $13,216 to $32,000. Party leader Lorne Doerkson announced the proposal Oct. 8, saying a Conservative government would make the change if elected on Oct. 24. The civic elections are scheduled for Oct. 17, one week earlier. The announcement was made at a grocery store in Surrey, an apparent response to a BC NDP news conference outside a grocery store the previous week about capping prices on essential groceries.

Doerkson framed the proposal as a response to household financial pressure and criticized recent BC NDP tax changes. He said the NDP had raised taxes more than 40 times over the past decade, that its first campaign announcement was a new tax, and that it had announced a tax increase for doctors earlier that week. He argued that taxes cannot resolve the affordability crisis and said a new Conservative government would not raise taxes. These are Doerkson’s claims and campaign commitments.

Under the proposal, people earning more than about $40,000 a year would receive the full savings. A couple in which both partners qualify would save about $2,000 annually, or roughly $167 a month. The Conservatives say the proposed basic personal amount would be the largest in Canada. Doerkson said a person working full-time for minimum wage would pay no provincial income tax.

The basic personal amount is used to calculate a tax credit that reduces provincial income tax. Raising it would also reduce the tax owed by people earning above the new threshold. Actual savings would depend on taxable income and other credits. The current credit is non-refundable: it can reduce provincial income tax to zero, but any unused amount is not paid out. Someone who already owes no provincial income tax would therefore receive no direct savings from this credit increase alone.

Asked how the province would adjust its budget for lower income tax revenue while running major annual deficits, Doerkson said the change would be funded through a combination of cuts and new economic activity. He said the province must accelerate economic growth to generate revenue while preserving and improving frontline services. He cited plans to expand the liquefied natural gas business, improve existing forestry infrastructure and strengthen mining, among other sectors.

Under the BC NDP-led government, the lowest provincial income tax rate rose from 5.06 per cent to 5.6 per cent for the 2026 tax year. The provincial budget also increased a separate tax reduction credit for lower-income people. Eby’s administration said more than 40 per cent of taxpayers would save money when that credit change was included, despite the higher rate.

Eby’s 2026 budget also suspended annual inflation adjustments to provincial income tax brackets and basic non-refundable credits from 2027 through 2030. With those thresholds frozen, people whose wages rise with inflation can pay more tax even when their purchasing power does not improve.

The Conservatives’ announcement follows Eby’s Oct. 4 platform commitment to raise taxes on higher incomes. It would increase the rates on the two highest existing brackets by two percentage points and create a new bracket for income above $1 million. Under the BC NDP proposal, the increases would apply to portions of taxable income above $190,405. The party says about 96 per cent of British Columbians would face no increase and projects the plan would eventually raise about $1 billion annually for improved health care and affordability measures. The Conservatives and other critics say the proposal could drive more professionals, including needed physicians, out of the province.