Vancouver plans to freeze property taxes in 2026, but water, sewer, parking, and permit fees are expected to rise to balance the city budget.
Vancouver Fees to Rise as City Targets 0% Tax Increase
Budget Plan Under Review
Vancouver City Council will vote Wednesday on Mayor Ken Sim’s proposal to keep property taxes flat in 2026 after three years of cumulative increases of roughly 20 per cent. Staff reports show the city would need to hold its operating budget at $2.4 billion, requiring $120 million in combined cost reductions, fee increases, and new revenue sources to achieve a zero per cent property tax change.
Services Affected by Higher Costs
To make the plan work, several city service fees are projected to increase in 2026. These include parking rates, development permit fees, sewer fees, and water-related charges. The city’s finance staff say raising service-based fees spreads costs to users rather than homeowners overall, but the changes could result in higher living expenses for many residents.
Water Meter and Rate Increases
The city’s manager of engineering services has recommended increasing the cost of installing residential and commercial water meters by between two and 33 per cent, depending on building type and system requirements. In addition, metered water rates are expected to rise by four per cent next year, forming part of a gradual 20 per cent increase over five years. Flat-rate water bills, still paid by about 68,000 of Vancouver’s 100,000 water connections, are projected to rise between 10 and 16 per cent as the city continues shifting toward full metering.
Reason for Water Cost Adjustments
Vancouver purchases its water from Metro Vancouver, and the regional supplier is charging more for 2026. City staff report Vancouver’s water purchase cost will total $109 million in 2026, up $1.9 million from the previous year. Officials say higher fees are required to match rising supply charges and ongoing infrastructure demands, while metering is intended to improve conservation and align billing with consumption.
Decision Timeline and Public Impact
Council will first vote on the zero per cent property tax strategy before reviewing the detailed fee schedules later in the budget process. The proposal has drawn mixed response: some residents welcome relief from further property tax increases, while others say increasing fees for essentials like water and sewer service may still leave households paying more overall. Public consultation and further budget discussions are expected through 2025.
