BC Conservative Leader John Rustad announced on Monday that if he is elected Premier, “$3,000 per month in housing costs will be exempted from BC income tax.”
Rustad unveiled the BC Rent and Mortgage Rebate — the “Rustad Rebate” — “a program designed to deliver real financial relief to renters and homeowners across the province” and “designed to help middle-class British Columbians cope with the mounting pressure of rent and mortgage payments.”
Rustad said: “My promise to the people of British Columbia is that, if elected Premier, I will systematically attack the cost pressures in all areas of life. Middle-class families deserve to get ahead and enjoy their lives, without constantly worrying about the bare minimum costs of existing. People are being punished by having to pay for sky-high housing costs with their after-tax income.”
Rustad pointed out: “In 2017, David Eby and the NDP promised a $400 rent rebate for all renters, regardless of income. As usual, they broke that promise not once, but twice. Not only did they fail to deliver for five consecutive budgets, but when they finally introduced it in 2023, it was so severely income-tested that the average family in Vancouver can’t qualify.”
Rustad criticized the NDP’s rebate as a token gesture, calling it a “drop in the bucket” for those struggling with the skyrocketing cost of living. “The NDP’s scheme barely covers 1% of the annual rent for a one-bedroom apartment in Vancouver. It simply isn’t good enough. Families and individuals are being driven out of our cities because they can’t afford to live here anymore.”
The Rustad Rebate will begin by exempting $1,500 per month in Budget 2026, and increase by $500 per year to $3,000 per month.
“The Conservative Party believes in hard work and opportunity. If you work hard here, you should be able to get ahead,” Rustad said. “Under the NDP, British Columbians have been trapped in an endless treadmill of rising costs and punishing taxes. The Rustad Rebate is a real solution to help families stay in their homes, support the middle class, and provide relief to those being squeezed by high housing prices and rents.”
Key elements include:
* Largest tax cut for renters and homeowners in BC history – $3,000 per month of rent or mortgage interest costs will be exempt from provincial income taxes. This will be achieved by issuing a tax credit worth 5.06% of eligible housing costs, equivalent to the rate of BC’s base tax bracket.
* Immediate relief in Budget 2026 – by exempting $1,500 per month, increasing by $500 per year to the full level of $3,000 per month. This is a clear and long-term commitment to British Columbians who work hard.
* A fair and fiscally responsible tax credit – The 2026 budget impact will not exceed $900 million, and BC Conservatives will design a targeted tax credit that ensures the relief goes to people who need it to get ahead in life.
