Budget overview
Each year, the township adopts an annual budget to fund important services used every day in our community. The new tax rates must be set before May 15 to raise enough revenue from property taxes to fund the annual budget.
Council considers the property tax increase required by the projected cost increases for existing service levels before considering enhanced or new service level.
Overall property tax increases can be attributed to the (i) Council approved increase, (ii) the change in assessment value of a property, and (iii) amounts collected by the Township on behalf of third-party agencies. There is a different tax rate for each property class in the municipality.
For 2026, an 11.32 per cent increase was needed to fund the budget components including increased contributions to the long-term infrastructure reserves, approval of the Victoria/Esquimalt Police Board budget, approval of three new full-time staff positions, and the conversion of three temporary fire fighter positions to permanent, amongst other costs. Council deferred the Official Community Plan update project costs and a Fire Inspector position to 2027.
This increase represents an additional $420 in taxes to the average property in the township based on a residential property that experiences an average assessment value change.
Where your tax dollars go
The township is required to collect taxes on behalf of other taxing agencies, and in turn remits these taxes directly to them. About 62 per cent of the taxes you pay goes to the municipality. Municipal taxes also fund utility costs like sewer and refuse collection, rather than sending separate invoices to residents and businesses as is the practice in other municipalities.
The remaining 38 per cent goes to other agencies who set their rates independently. These include:
- Province of British Columbia (School Taxes)- 19%
- Capital Regional District- 10%
- Capital Regional Hospital District (Regional Hospital)- 2%
- Victoria Regional Transit- 6%
- BC Assessment Authority- 1%
Operational budget
The 2026 approved operating budget has protective services (fire, police) as the largest cost item.
What funds our budget?
Property taxes make up about 28 per cent of the township’s revenue sources.
The Payment in Lieu of Taxes (PILT) provided by the Federal Government represents 35 per cent of total taxation revenue. The amount paid each year is variable and plays an important role in Esquimalt’s revenue stream and a decrease in PILT assessments puts pressure on municipal mill rates.
Funding for capital projects does not impact property taxes—capital projects such as active transportation infrastructure are paid for by grants when possible or out of reserve funds. Contributions to these funds are invested to add capital until they are used for a project.
Tax deferment
The tax deferment program is a loans program available to eligible B.C. homeowners. It allows you to defer your current year property taxes. Learn more.
Home owner grant
Property owners who occupy a property as their principal residence may be eligible for a Provincial home owner grant. Learn more on the Government of B.C. website. You must claim your home owner grant every year you are eligible.