B.C. Pauses Planned 7% PST on Commercial Real Estate Services

September 18, 2026

A planned expansion of British Columbia’s Provincial Sales Tax (PST) that was set to affect certain professional services on October 1, 2026, has been paused by the provincial government.

For the real estate industry, the announcement is particularly relevant to commercial and other non-residential real estate services.

What Was Changing?

Under the 2026 provincial budget, B.C. had planned to expand the 7% PST to certain professional services beginning October 1, 2026.

For real estate, the proposed change would have applied PST to non-residential real estate services, including commissions and certain other services relating to commercial property. BCFSA previously advised real estate professionals that the new tax would apply to qualifying services involving non-residential property, while residential property remained exempt.

This meant that commercial real estate transactions could have faced an additional 7% PST on applicable real estate services.

The Planned Change Has Now Been Paused

On September 18, the Province announced that the planned October 1 expansion of PST to professional services is being paused.

As a result, the PST exemption for non-residential real estate commissions and services will remain in place for now. The Province estimates that pausing the expansion will save businesses, individuals and local governments approximately $260 million in 2026–27.

What does this mean for real estate?

The important distinction is between residential and non-residential real estate.

🏡 Residential real estate: The proposed PST expansion did not apply to typical residential real estate services.

🏢 Commercial/non-residential real estate: A 7% PST was scheduled to begin October 1, 2026, but that change has now been paused.

Bottom line: The new 7% PST on qualifying commercial/non-residential real estate services will not take effect October 1, 2026, as originally planned.

Why This Matters

Taxes and transaction costs can have an impact on the overall cost of buying, selling, leasing or managing commercial property.

For businesses involved in commercial real estate, the pause means the previously announced additional PST cost will not be introduced on October 1 as scheduled.

It is also a reminder that tax policy can change and that buyers, sellers, investors and business owners should look at the tax treatment of their specific transaction rather than assuming that rules applying to residential property also apply to commercial property.

BCFSA notes that the proposed rules included specific definitions, exemptions and transitional provisions for non-residential real estate services. Anyone dealing with a complex commercial transaction should obtain appropriate tax or accounting advice for their individual circumstances.

What Happens Next?

For now, the planned PST expansion remains paused. The Province has indicated that the pause is being implemented through a temporary regulation.

For anyone involved in commercial real estate, this is an important update to keep on the radar as provincial tax policy continues to evolve.

https://news.gov.bc.ca/releases/2026PREM0034-001089?utm_medium=email&utm_source=ctct

Thinking about buying or selling real estate?

Understanding the financial and regulatory environment is an important part of making informed real estate decisions.

Tara Kennedy
REALTOR®, ABR, RENE, SRS
📞 236-992-8989
🌐 www.tarakennedy.ca

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