British Columbia carbon tax

The British Columbia carbon tax had been in place since 2008, but was repealed by the BC government on April 1, 2025. It was a British Columbia policy that added additional carbon taxes to fossil fuels burned for transportation, home heating, and electricity and reduces personal income taxes and corporate taxes by a roughly equal amount. The carbon tax was collected at the point of retail consumption (for example, at the pump for gasoline and diesel).

British Columbia's policy was unique in North America; only Quebec has a similar retail tax, but it was set at a much lower rate and does not include a matching tax shift. Unlike most other governments, British Columbia's electricity portfolio largely consists of hydroelectric power, and its energy costs, even with the tax, are lower than in most countries.