B.C. NDP Leader David Eby has promised to introduce a new income tax bracket for residents earning $1 million or more annually to fund health care improvements and lower living costs. The proposal includes a 24.5 per cent provincial tax rate on income exceeding $1 million, alongside two-percentage-point increases for the top two existing tax brackets, the Vancouver Sun reported.
NDP Proposes Higher Tax Rates for Top Earners
The B.C. NDP plan targets the highest earners with specific adjustments to the provincial tax code. Currently, those earning between $190,405 and $265,545 pay 16.5 per cent, while those earning over $265,545 pay 20.5 per cent. Eby’s proposal would raise these rates to 18.5 per cent and 22.5 per cent, respectively, according to the Vancouver Sun.
A new top bracket would apply to every dollar earned over $1 million, taxed at 24.5 per cent. When combined with the 33 per cent federal income tax on earnings over $258,482, a British Columbian earning over $1 million would face a total tax rate of 57.5 per cent on those dollars, the Vancouver Sun noted.
Did you know? The B.C. NDP states these changes would apply to less than 4 per cent of earners, with no tax changes for the remaining 96 per cent of British Columbians, according to CBC and Abbotsford News.
Revenue Projections for Health Care
Eby stated the new tax regime would generate approximately $1 billion in annual revenue. NDP projects these taxes will raise $225 million in 2026/27, $925 million in 2027/28, and $1 billion by 2028/29.
The funds are earmarked for health care improvements and efforts to reduce costs for residents. During a rally in Victoria, Eby told the crowd that the province cannot be built on “vibes” and must be honest about the costs of public services, as reported by Abbotsford News.
Conservatives and Greens Criticize Proposed Tax Hikes
The B.C. Conservative Party criticized the proposal, stating in a press release that the tax hikes could drive doctors and specialists out of the province and hinder recruitment efforts. The party, which has campaigned on a promise not to raise taxes, claimed the NDP believes every problem can be fixed by increasing taxes, according to CBC.
B.C. Greens Leader Emily Lowan argued the plan misses the mark because the ultra-wealthy often accumulate wealth through stocks and real estate rather than paycheques. Lowan stated that Eby’s proposal does not touch those assets, according to CBC.
Eby Proposes Grocery Price Guards and Fuel Tax Cuts
The tax announcement is part of a wider platform that includes price guards for essential groceries—such as milk, eggs, cheese, and poultry—and a temporary 10-cent per litre reduction in the provincial motor fuel tax, according to CBC and Abbotsford News.
Eby also proposed a new tax on empty condominiums and the removal of the speculation and vacancy tax. However, Sam Ganong, principal of Formwell Homes, wrote in the Times Colonist that putting downward pressure on the real estate industry could be counterproductive, noting that Vancouver condo starts fell 40 per cent in the first half of 2026.
Context: B.C. Conservative candidate Peter Milobar has questioned the reliability of Eby’s promises, citing a $1,000 annual grocery rebate promised in 2024 that was later cancelled, according to CBC.
Impact on High-Income Earners
| Income Bracket | Current Rate | Proposed Rate |
|---|---|---|
| $190,405 to $265,545 | 16.5% – 16.8% | 18.5% – 18.8% |
| $265,545 to $1M | 20.5% | 22.5% |
| Over $1 Million | 20.5% | 24.5% |
Note: Discrepancies in current and proposed rates for the second-highest bracket (16.5% vs 16.8% and 18.5% vs 18.8%) exist between reporting from the Vancouver Sun and Abbotsford News/CBC.
B.C. Tax Proposal Questions
When would these tax changes take effect?
According to Abbotsford News, the new taxes would be introduced in the 2027 tax year.
Which specific groceries would be subject to profit margin caps?
NDP intends to cap profit margins on eggs, cheese, milk, and poultry.
How much would the fuel tax reduction save drivers?
Eby stated the reduction in gas prices could save residents around $20 on a tank of gas, as reported by Abbotsford News.
The province goes to the polls on Oct. 24.