Homeowner grant threshold confirmed
The 2020 homeowner grant threshold in British Columbia has been set at $1.525 million, maintaining that 92% of homeowners continue to be eligible for the B.C. homeowner grant.
The threshold is down from $1.65 million in 2019 due to moderating housing prices throughout the province. The threshold has again been set to ensure the same percentage of residential property owners are below the threshold and eligible for the full, basic grant amount. In years prior, rapidly rising housing prices led to an increase in the threshold, explained a Jan. 3 Ministry of Finance media release.
The homeowner grant reduces the amount of property tax people pay to a municipality or to the province for people who live in a rural area.
The grant is reduced by $5 for every $1,000 of assessed value above the threshold, meaning eligible homeowners with properties assessed above the threshold receive a partial grant until it is fully phased out. Some low-income owners, such as seniors or people with disabilities, can also apply for a supplement that replaces any grant amount they lose due to the value of their home being over the threshold.
The homeowner grant amounts are:
* up to $570 for the basic homeowner grant;
* up to $770 if the home is located in a northern or rural area. A “northern or rural area” means outside the Metro Vancouver, Fraser Valley and Capital Regional districts.
* up to $845 for homeowners who are 65 years or older, or if the homeowner is a person with a disability or lives with a relative who has a disability.
* up to $1,045 for homes in northern or rural areas where the homeowner is 65 years or older, or the homeowner is a person with a disability.
The B.C. government reimburses municipalities for the full cost of the grant to ensure local government tax revenues are not affected.
Homeowners may also be eligible for property tax deferment if they are 55 years or older or are financially supporting a dependent child.