Interest and fees for property tax deferment
Last updated on April 17, 2026Learn how interest and fees apply to your deferred property taxes.
On this page
- Interest rates for property tax deferment
- Interest applicable to amounts deferred for 2026 and subsequent tax years
- Interest applicable to amounts deferred before 2026
- Fees
- How we apply your deferment amounts
- Automatic renewals
Interest rates for property tax deferment
Interest is charged on your property tax deferment loan from the date your property tax is due or the date you apply to defer your taxes, whichever is later.
| Interest rate: regular program | Interest rate: families with children program | Interest rate terms | |
|---|---|---|---|
| Taxes deferred for 2025 and previous years | Prime minus 2% | Prime | Simple interest |
| Taxes deferred for 2026 and subsequent years | Prime plus 2% | Prime plus 2% | Compound interest |
Interest applicable to amounts deferred for 2026 and subsequent tax years
The interest rates are:
- Set January 1, April 1, July 1 and October 1 every year
- Calculated daily
- Compounded monthly
Under the regular program and the families with children program, you're charged compound interest at an annual rate of 2% above the prime rate of the government's principal banker.
How interest is calculated
For taxes deferred for 2026 and subsequent tax years, the tax deferment program will use compound interest, which means:
- Interest will compound monthly at an annual rate of 2% above the prime rate of the government's principal banker
- On the 23rd day of each month, accrued interest for the month will be added to your balance and subject to interest the following month
- You will not be charged interest on application or renewal fees
Example of how compound interest accumulates
| Year | Opening balance | Interest (6.45% annually) | Closing balance |
|---|---|---|---|
| Year 1 | $3,000.00 | $199.32 | $3,199.32 |
| Year 2 | $3,199.32 | $212.57 | $3,411.89 |
| Year 3 | $3,411.89 | $226.69 | $3,638.58 |
Interest applicable to amounts deferred before 2026
Interest is charged on your tax deferment loan from the date your property tax is due or the date you apply to defer your taxes, whichever is later.
The interest rate you're charged depends on the tax deferment program you're enrolled in. The interest rates are:
- Set April 1 and October 1 every year
- Calculated on the 23rd of each month
- Not compounded
The current interest rates are in effect until September 30, 2026.
Under the regular program, you're charged simple interest at a rate not greater than 2% below the prime rate of the government's principal banker.
Under the families with children program, you're charged simple interest at a rate not greater than the prime rate of the government's principal banker.
Note: The Financial hardship program was only available to homeowners in 2009 and 2010.
How interest is calculated
For taxes deferred before 2026, the tax deferment program will continue using simple interest, which means you're:
- Only charged interest on the principal amount that has been deferred
- Not charged interest on top of the amount of interest owed
- Not charged interest on application or renewal fees
Example of how interest and fees accumulate
|
Year |
Deferral amount |
Principal |
Interest (2.45%) |
Fees |
Total |
|---|---|---|---|---|---|
| Year 1 | $3,000.00 | $3,000.00 | $73.50 | $60.00 | $3,133.50 |
| Year 2 | $3,000.00 | $6,000.00 | $147.00 | $10.00 | $3,157.00 |
| Year 2 End Total | $6,000.00 | $220.50 | $70.00 | $6,290.50 |
|
Year |
Deferral amount |
Principal |
Interest (4.45%) |
Fees |
Total |
|---|---|---|---|---|---|
| Year 1 | $3,000.00 | $3,000.00 | $133.50 | $0 | $3,133.50 |
| Year 2 | $3,000.00 | $6,000.00 | $267.00 | $0 | $3,267.00 |
| Year 2 End Total | $6,000.00 | $400.50 | $0 | $6,400.50 |
Fees
When you first apply for the regular program, you will be charged a $60 administrative fee. For every year that you renew your application, you will be charged a $10 renewal fee. These fees are charged and added to your loan balance if you're approved. Issued by early May each year, you will receive an annual Statement of Account letter which will indicate fees.
You will not be charged these fees if your application under the program or your renewal application has been denied.
You will not be charged these fees if you apply for the families with children program.
How we apply your deferment payments
If you make a payment on your property tax deferment account, the payment is applied in the following order, starting with the oldest 2026 and subsequent debt first, and then the oldest pre-2026 debt:
- Fees (if applicable)
- Interest
- Principal
Automatic renewals
If you're registered for the automatic renewal option, your 2026 and subsequent years property taxes will be automatically deferred under the new interest rate terms unless you choose to opt out of automatic renewal. We will continue to confirm you meet the program requirements before deferring your 2026 taxes.
How to opt out of automatic renewal
- Submit a web message through your eTaxBC Property Tax Deferment account by selecting Contact the Ministry and select the message type Account change. Use the subject line: Opt-Out Auto Renewal, or
- Call us at 1-888-355-2700
You can opt out of automatic renewal at any time. However, we suggest you contact us before June 1, 2026, if you do not want your 2026 taxes automatically deferred.
Opting out of automatic renewal does not require immediate repayment of your previous loans. However, you must pay your current property taxes to your municipality or rural tax office on or before the tax due date to avoid penalties and interest charges.
See what the interest rates used to be for each of the tax deferment programs.
Contact information
Contact us with your questions about deferring your property taxes.
1-888-355-2700
1-250-387-0555