B.C. has announced that the planned October 1, 2026 expansion of PST to professional services has been paused. 

The Province says the pause will maintain the existing PST exemption for professional services, including bookkeeping, accounting, architectural, engineering, non-residential real estate and security services.

What this means: The October 1 PST expansion discussed in this article is not proceeding as originally scheduled.

We'll update this article as B.C. provides further information about when the expansion may proceed.

Starting October 1, 2026, BC adds 7% PST to certain property management fees. If that sentence just made you brace yourself, here's the relief up front: most residential landlords aren't affected at all. This one is specifically about commercial and non-residential property.

The Split That Actually Matters: Residential vs. Non-Residential

If you own a standard rental property, a house, a condo, a townhome, and you pay someone to manage it, your management fees stay PST-exempt. The new rules specifically target non-residential real estate services: rental property management and strata management for commercial property, along with real estate trading services and commissions tied to non-residential real estate deals.

So a residential property manager handling houses, condos, and apartment rentals generally sees no change here. A commercial property manager handling retail units, office space, or industrial buildings does.

What Actually Counts as "Non-Residential" Here

To be taxable under this specific rule, the service needs to be provided by someone licensed, or required to be licensed, under BC's Real Estate Services Act, and it needs to be rental property management, strata management, or a trading service tied to non-residential property. Residential property management and residential strata management by a licensed provider stay exempt.

Mixed-Use Buildings Get Split Proportionally

A building with retail on the ground floor and residential units above doesn't get a simple yes-or-no answer. PST applies only to the portion of the service reasonably attributable to the non-residential part of the property. BC's own guidance on this uses a concrete example: a property classified 60% commercial and 40% residential by square footage means PST applies to the 60% commercial share of the management fee, with the 40% residential portion staying exempt. Keep the supporting documentation on how that split was calculated, since it's the basis for the taxable amount claimed.

What This Means for the Fee Itself

For a commercial property owner paying $2,000 a month in management fees, 7% PST adds $140, bringing that to $2,140. Unlike GST/HST, this isn't something the paying business generally claims back through input tax credits, so for many purchasers of these services, it's a real added cost rather than simply a timing issue.

Registering If You Provide These Services

If you're a licensed property manager or strata manager providing non-residential services on or after October 1, you generally need to register for PST and collect it, the same mechanism as the accounting-services expansion happening the same day. Registration through eTaxBC has been available since April 1, 2026.

One thing worth knowing: the small-seller exemption here is narrow, generally requiring both $10,000 or less in gross taxable revenue and no established commercial premises. Most property management businesses with an actual office won't qualify, even a small one.

The Same Timing Rule Applies

Consideration paid or due before October 1, with the service completed entirely before December 1, 2026, generally stays PST-exempt. If any portion of that service is actually provided on or after December 1, PST applies to the part attributable to work done from October 1 onward. A management contract that straddles the transition needs a closer look, not an assumption based on when the invoice went out.

FAQ

Does this affect a landlord renting out a single condo or house? No, not if the management is residential. This rule specifically targets non-residential property management, so a typical residential rental stays outside it.

What about a strata corporation managing a residential condo building? Residential strata management by a licensed provider stays exempt. It's non-residential strata management, think commercial or mixed-use buildings, that becomes taxable.

Does this apply to real estate commissions too, or just management fees? Commissions tied to non-residential real estate transactions fall under the same expansion. Residential real estate commissions are a separate question with their own treatment.

How does a property manager handle a building that's part commercial, part residential? The taxable portion needs to be reasonably estimated and documented, generally based on something concrete like the split in square footage between the commercial and residential parts of the building, consistent with BC's own guidance on mixed-use properties.

Follow the system. File with confidence.