B.C. Home Owner Grant threshold drops for first time in years as values fall | Daily Hive

Falling assessment values push B.C. Home Owner Grant threshold down for first time in years

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For the first time since the 2020 tax year, the Government of British Columbia has lowered the threshold for the B.C. Home Owner Grant — from $2.175 million in the 2025 tax year to $2.075 million for the 2026 tax year.

The threshold, which determines the maximum assessed value a home can have to qualify for the full grant, had previously stood at higher levels in recent years to reflect rising property values. It can fluctuate each year based on the change in home values by BC Assessment.

The 2026 assessments, based on the values as of July 1, 2025, have taken a noticeable decrease, ranging from flat to a drop of 10 per cent in the Lower Mainland — an overall decrease from $2.01 trillion in 2025 to $1.92 trillion in 2026.

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The Home Owner Grant is a key provincial program that helps reduce annual property taxes for residents on their principal residence. For years, the threshold steadily rose along with home values, allowing many property owners to qualify for the full benefit. In 2025, the threshold was set at $2.175 million, meaning homes assessed at or below that value could access the full grant amount — and those slightly above could receive a reduced grant.

However, with the new $2.075 million threshold taking effect for 2026, some homeowners in high-value markets such as Metro Vancouver, Fraser Valley, Victoria, and Kelowna may find their properties exceed the cutoff and thus qualify for only a partial grant or none at all.

The amount of the grant — designed to assist lower- and middle-value homeowners — is gradually reduced by $5 for every $1,000 of assessed value above the threshold, a structure designed to taper out relief as homes rise further in value.

The grant itself provides a reduction on property taxes helping to offset the rising cost of homeownership in many regions — base grants of up to $570 for most eligible homeowners in Metro Vancouver, Fraser Valley, and the Capital Region and an additional grant of up to $845 for eligible seniors, veterans and persons with disabilities in the same regions. Eligible homeowners outside of these three key regions can also receive more.

Nearly 500,000 seniors and over 19,000 people with disabilities received the extra support in 2025.

While the threshold based on home values can change each year, it should be noted that these base grant and additional grant rates have not been adjusted for inflation over the years.

Historically, the grant has benefited about 92 per cent of homeowners in the province. Reflecting rising home prices, the threshold was set at $1.05 million in 2010, $1.15 million in 2011, $1.285 million in 2012, and $1.295 million in 2013, before falling to $1.1 million in 2014 — as a budgetary cost-savings measure — and in 2015.

During a period of escalating home prices, it went up to $1.2 million in 2016, $1.6 million in 2017, and $1.65 million in 2018 and 2019, before falling to $1.525 million in 2020 amid the pre-pandemic housing slowdown. As home prices surged after the initial pandemic shock, the threshold rose to $1.625 million in 2021, $1.975 million in 2022, $2.125 million in 2023, and $2.15 million in 2024. This grant was first introduced in 1957.

The provincial government reimburses municipal governments for the full cost of the grant to ensure municipal revenues are not affected, given that the property tax is the most crucial revenue source for municipalities.

The provincial government’s annual budget set aside $919 million for the grant in the 2024/2025 fiscal year, potentially rising to $938 million in 2025/2026 and $956 million in 2026/2027.

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