David Eby's BC NDP proposes higher taxes on top incomes to raise $1 billion per year | Daily Hive

David Eby's BC NDP proposes higher income taxes on top earners to raise $1 billion per year

David Eby. (BC NDP)

British Columbians with taxable incomes $190,405 and higher would pay more provincial income tax under a BC NDP proposal the party says would eventually raise $1 billion annually in new revenue for the provincial government.

Premier David Eby announced the plan this evening, just ahead of the BC NDP’s rally in Downtown Victoria.

The changes would begin in the 2027 tax year if the BC NDP is re-elected during the provincial general election on Saturday, Oct. 24, 2026.

Eby’s party estimates the increases would affect 3.88 per cent of B.C. income earners, leaving more than 96 per cent without an increase under this proposal.

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“We want everyone to prosper in British Columbia. We celebrate when families and businesses here are successful,” said Eby.

“But when people are struggling, we think that it’s fair to ask those at the top to pitch in a bit more so we can make it possible for everyone to get ahead.”

The proposal would raise the rates for the existing top two income tax brackets by two per cent and introduce a new bracket for annual taxable income above $1 million.

Under the scheme, incomes between $190,405 and $265,545 would see their B.C. income tax rate rise from 16.8 per cent to 18.8 per cent. Incomes between $265,545 and $1 million would see their income tax rate increase from 20.5 per cent to 22.5 per cent. The new income tax bracket for those earning over $1 million would see their tax rate at 24.5 per cent.

The higher rates would apply only to the income within each bracket. Everyone, including those earning more than $1 million, would continue to pay the same rates on their first $190,405 under this proposal. Federal income tax would remain separate.

For example, someone with $200,000 in taxable income would face the two per cent increase on the $9,595 they earn after the first$190,405. That would add about $192 to their annual provincial income tax bill, based on the announced rates.

Using the same calculation, someone with $250,000 in taxable income would pay about $1,192 more annually. At $1.5 million, the increase would be about $36,192, including the higher rate on income above $1 million.

The additional revenue would build over several fiscal years. As a result of these new tax rates, the BC NDP projects $225 million in new revenue during the 2026/27 fiscal year, followed by $925 million in 2027/28 and $1 billion in 2028/29. The party asserts the money could help pay for healthcare improvements and new affordability measures.

The provincial government is facing a soaring annual debt and deficit crisis due to a combination of increased spending and lower revenues. September 2026’s fiscal update projects a $13.8-billion deficit this year, followed by $12.7 billion in 2027/2028 and $12 billion in 2028/2029. Total provincial debt is expected to reach $180.9 billion by the end of this fiscal year and almost $236 billion before the end of this decade. When Eby first became premier in late 2022, provincial debt hovered at about $89 billion.

Despite the income tax increases, the BC NDP claims this province would retain the second-lowest provincial income tax bill among Canada’s provinces for someone earning $250,000, and the third-lowest at $400,000. B.C. would also be fifth among provinces for those earning $500,000.

In reaction to the BC NDP’s proposed tax hike, the Conservative Party of British Columbia issued a statement, asserting that such a move would cause more people to relocate out of the province, including highly-sought professionals — such as much-needed physicians to help address B.C.’s healthcare challenges.

“At a time when British Columbians desperately need more doctors, David Eby has revealed his plan to drive doctors out of our province. He promised every British Columbian a family doctor by the end of 2025. Emergency rooms are still closing at night, and now he wants to tax the doctors and specialists every community is fighting to recruit,” reads the statement by the Conservatives this evening.

Last week, Conservative leader Lorne Doerkson made the platform promise that if elected, his party would not introduce any new provincial taxes nor increase existing ones.

“There is no problem the NDP don’t think can be fixed by raising your taxes. The Conservative Party of B.C. has committed to no new taxes, and a government led by Lorne Doerkson will make B.C. the place doctors choose to build their practice,” continued the Conservatives’ statement.

The Conservatives have also singled out this year’s increase in B.C.’s lowest provincial income tax rate, which rose from 5.06 per cent to 5.6 per cent. The new rate applies to the first $50,363 of taxable income in 2026, meaning the change also affects people earning more than that amount.

However, it should be noted that the budget also increased personal tax credits, including raising the maximum B.C. tax reduction credit for lower-income residents by $115 to $690. These changes at least partly offset the higher tax rate for some taxpayers.

The Conservatives also criticized the freeze on income tax brackets. The BC NDP-led provincial government has suspended annual inflation adjustments to bracket thresholds for the 2027 through 2030 tax years, with adjustments scheduled to resume in 2031. Without those adjustments, a worker whose pay rises only enough to keep up with inflation can still see more of their income fall into a higher tax bracket, despite having no greater purchasing power.

Early on in the campaign period, the BC NDP also announced the platform promise of creating a new tax on developers and their unsold newly-built strata market ownership condominiums kept vacant.

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