BC PST on Property Management Fees?
September 18, 2026 Update: the 7% PST on management fees planned for October 1st 2026 has been placed on hold by the BC government until further notice. Most residential property owners would not have been impacted anyway.
The BC Budget 2026 announced a significant change to how Provincial Sales Tax (PST) is applied to professional services, including property management fees.
At Birds Nest Properties, many of our clients have been asking: “Will I see a 7% increase in my management fees this year?” Here is the essential breakdown of the new rules and how they affect your specific investment properties.
What is Changing?
Nothing yet. The BC government had planned to expand the 7% PST to include several professional services that were previously exempt, effective October 1st, 2026.
According to the government’s Notice 2026-001, this includes accounting, engineering, and non-residential real estate services.
But on September 18, 2026, the BC government announced a halt to this PST change until further notice.
How This Affects Your Portfolio
When effective at a later date, the impact of this tax depends entirely on the classification of your property.
1. Residential Rental Properties (Exempt)
If you own a standard residential rental such as a detached home, a condo, or a townhome, your property management fees remain PST-exempt. The new legislation specifically targets “non-residential” services. Because Birds Nest Properties is primarily a residential property management company, the vast majority of our owner clients will see no change in the taxes applied to our management fees.
2. Commercial Properties (Taxable)
For owners of commercial real estate (e.g., retail spaces, offices, or industrial units), however, the landscape will change from this new rule. Once effective, the professional fees you pay for rental property management and strata management will be subject to the 7% PST.
3. Mixed-Use Buildings
If you own a “mixed-use” property, which is typically a building with commercial storefronts on the ground floor and residential units above, the tax will likely be applied proportionally.
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- Fees for managing the residential units remain exempt/li>
- Fees for the commercial units will become taxable.
Frequently asked questions
Based on current provincial guidance, no. Even when the PST expansion becomes effective, it targets commercial and non-residential real estate services. Residential property management is currently classified as a residential real estate service and is not included.
The expansion applies to non-residential and commercial real estate services, along with services like accounting and engineering. For a mixed-use property, only the portion of the fee tied to the commercial unit would be affected.
Originally planned to take effect on October 1, 2026, the PST expansion was halted by the BC government on September 18, 2026 until further notice
Birds Nest Properties specializes exclusively in long-term residential tenancies and does not manage Airbnb or short-term vacation rentals. Short-term and commercial arrangements are where PST questions are more likely to arise.