Defer Your Property Taxes
Tax deferment is a low interest loan program that helps qualified B.C. homeowners pay their annual property taxes on their principal residence.
Here's how it works:
- Receive your annual property tax notice
- Confirm you qualify for one of the tax deferment programs
- Make sure your property tax account is up to date
- Submit your application to the correct office
- Know what to expect if your application is approved
- Renew your tax deferment loan agreement each year
There are certain situations where property taxes can’t be deferred. Find out when you can’t defer your property taxes.
Property Tax Deferment Process
1. Receive your annual property tax notice
Annual property tax notices are sent out every May. You will need to know the amount of your current year taxes before you apply. Contact your property tax office if you did not receive your tax notice by the end of June.
City of Vancouver residents have to wait until their main tax notice billing period before they can apply. Find out more.
2. Confirm you are qualified
There are two tax deferment programs you may qualify for:
Regular Program
You may qualify for the Regular Program if you’re:
- 55 or older during the current year or
- a surviving spouse of any age or
- a person with disabilities
Find out more about the Regular Tax Deferment program.
Families with Children Program
You may qualify for the Families with Children Program if you're a parent, stepparent or financially supporting a child.
Find out more about the Families with Children Program.
3. Pay outstanding property tax debts
Your property tax account must be up to date. This means you must pay any property taxes owing from previous years, penalties, or interest before you apply to defer your taxes. The only amount outstanding on your property tax account should be the current year’s taxes (class 1 or class 1 and 9) minus your home owner grant (if eligible).
4. Apply to the correct office
Send your completed application to your property tax office at the address shown on your property tax notice. Do NOT send your application directly to us as it cannot be accepted and it will be rejected. A letter will be mailed to you with a new application to complete. If this is done after the tax due date, your property tax office may charge you a late payment penalty on your unpaid taxes.
Your property tax office will complete their portion of your application and forward it to us for processing. Your property tax office does not grant approvals into the tax deferment programs.
When we process your application, we confirm your eligibility; we may request further information to support your application. This will be sent to you by mail or email if indicated on your application.
Note: Some firewall protection settings may prevent our emails coming to you. Please add taxdeferment@gov.bc.ca to your contacts so our emails do not go into your spam or junk folder.
Possible processing delays
It can take us several months to process applications due to high volume so you may not get a response from us until after the property tax due date. If your application is received by your property tax office before the property tax due date but is approved after the due date, you won’t be charged a late payment penalty. However, if we find that you aren’t eligible for deferment and it’s past the property tax due date, your property tax office may charge you a late payment penalty on the unpaid taxes.
We will notify you by mail when we have finished processing your deferment application.
5. Know what to expect if your application is approved
If your tax deferment application is approved, we will pay your property taxes on your behalf and place a restrictive lien on your property. This means you are limited to the types of changes you can make to your property’s title while you are in the tax deferment program.
If you applied for the Regular tax deferment program, a $60 fee will be added to your account. There are no fees for the Families with Children program.
Simple interest is charged on the deferred tax amount starting from the date your property taxes are due or the date you applied to defer, whichever is later. Find out how interest is applied to your tax deferment loan.
6. Renew your loan agreement each year
The renewal process is not automatic. If you want to continue to defer your annual property taxes under this agreement, you will need to complete a renewal application each year.
Each May we will send you a Statement of Account and a Renewal Application. Find out about annual statements and the renewal process.
When you cannot defer your property taxes
You cannot defer your property taxes if:
- You don't meet ALL program qualifications
- Your current year property taxes have already been paid in full
- You owe overdue property taxes in arrears for previous years
- It’s a second residence like a cottage, summer home or rental home
- Your residence isn't taxed as a residential (class 1) improvement
- You have a restrictive lien on title, such as a Certificate of Pending Litigation, Injunction, Caveat or Judgment
- The property is taxed by a First Nation
- The property is leased from the Crown or Municipality
- The property shows you as a registered owner entirely "in trust", or as an executor/executrix of the will of a deceased owner, or an administrator of the estate of a deceased owner
- It’s a float home or on stilts that doesn’t have a property title registered with the Land Title Office
Contact your lender prior to applying to ensure approval into the program does not conflict with the terms of your loan
Note: If there's an option to purchase on the property title, the property may not qualify for deferment. Contact us for more information before you apply.
