Should I defer paying my property tax?

BC property owners who are 55 or older may qualify to defer paying property tax. The interest charges are low, and they're not compounded. While this program is designed to help people with low means keep their home, even if you have the means it may be worth it to invest the money, earn compounded interest, and pay later. Or is it? Lets do the math.

$ Your annual property tax
$ Application fee for the tax deferral program
$ Annual renewal fee
% Interest rate on deferred taxes
% Interest you could earn on investment income
% Personal income tax rate

YearDeferred taxInvestmentDifference
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Further reading: British Columbia Government page on the tax deferral program

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