Living in B.C. in 2022? Here’s what’s going to cost more – or less this year

The Canadian Taxpayers Federation says there will be some highs and lows when it comes to the cost of living for 2022.

For all tax payers, the federal income tax paid will be lower, because the federal basic personal amount is increasing to $14,398.

But employees will be on the hook for $953 and employers will have to pay $1,334 into Employment Insurance, both amounts up from previous years.

When it comes to individual expenses, there are a lot of dollars and cents at play in the upcoming year, as the world continues to grapple with the economic impacts of the pandemic.

Prices at the pump to jump

In the spring, the federal government’s carbon tax will increase by $10 dollars per tonne to $50. That will be about $8.40 more for the average minivan driver each time they fuel up.

“This will bring the B.C. carbon tax cost up to 11 cents per litre of gasoline, 13 cents per litre of diesel and 10 cents per cubic metre of natural gas,”  the Canadian Taxpayers Federation said.

It predicts that the average family will spend about $735 more for fuel up in 2022.

Drivers in Metro Vancouver already pay some of the highest gas taxes nation-wide. Prices at the pump as of Jan. 3 averaged at $1.66 a litre in Vancouver and Burnaby.

Another carbon tax is set to be imposed federally at the end of the year. It’s expected that will bring an additional 16 cents to per litre pump price of gasoline.

Plus – anyone in B.C. who makes more than $44,842 a year will no longer be eligible for the B.C. carbon tax rebate of $197.

ICBC says drivers will save more money this year

The average annual insurance premium for B.C. drivers was approximately $1,900 in 2021, and the insurance agency says drivers will pay even less in 2022.

That’s because of the shift to Enhanced Care, which “takes most legal costs out of B.C.’s insurance system – and passes those savings on to you,” ICBC said about the new program.

Drivers are expected to save about 20 per cent, or $400 on their insurance, and can get a personalized estimate online. 

The BC Utilities Commission approved the basic rate decrease to help provide stability with basic insurance until at least 2023.

Many critics say the new no-fault insurance system is harmful to those who have been injured in a crash – as it puts a cap on minor injury payouts and limits the types of collisions in which an ICBC customer can go to court to seek additional damages.

Cup of coffee getting costly

While it won’t impact everyone in the province, those who buy their java within Vancouver will be spending more each time they get their coffee to go.

That’s because the City of Vancouver is requiring all businesses charge at least $0.25 for all disposable cups. Buying a coke at McDonalds, for instance, will now cost you a quarter more than if you bought the same drink in a neighbouring city.

Those who don’t bring their reusable shopping bags to the grocery store will also be dinged. A fee of $0.15 for paper bags will be imposed, and buying a new reusable bag at the checkout will be $1.00.

Read more: Vancouver charge for single-use cups, bags comes into effect Jan. 1, 2022

Those fees will rise in 2023.

The City of Surrey banned plastic bags at the end of 2021 (including compostable and biodegradable) and a charge of $0.25 has been imposed per paper checkout bag. It costs $2.00 per reusable checkout bag.

However the city is not putting additional costs on takeout cups or containers as long as they do not contain Polystyrene foam.

Homeowners to spend more this year 

The cost of being a homeowner is expected to jump in B.C. due to several factors including the mounting value of homes in several areas, plus the rising taxes imposed by the city.

B.C. homeowners will receive their notice of assessment on Jan. 4, but early reports suggest a jump in real estate values.

The BC Assessment reflects conditions from last July.

“The most important factor is not how much your assessed value has changed, but how your assessed value has changed relative to the average change for your property class in your municipality or taxing jurisdiction.”

That will then be used to calculate the percentage owed to property taxes.

Property taxes to be impacted by rising assessments 

Vancouver homeowners will see the largest impact to their wallet, with a 6.35 per cent increase, higher than the five per cent proposed by city staff.

An owner of a $711,000 condo, for example, will pay about $72 more than they did in 2021, with an estimated bill of $1,209 for the year.

A business property will owe an estimated $5,262 in 2022, a jump of $314 over last year for a property assessed at $1 million.

That is only the city portion of taxes, and does not include utility fees, Provincial school taxes, and taxes levied by other taxing authorities including TransLink, Metro Vancouver, BC Assessment, and the Municipal Finance Authority.

A Richmond homeowner with a home valued at $1,172,079 can expect to pay about $69 more, according to the City of Richmond which limited property taxes to 3.86 per cent.

“A cost driver for 2022 is an increase in RCMP wages imposed through a federal agreement,” the city cites as the season for the additional $7 million policing costs put into the year’s budget and the impact on residents.

The City of Surrey approved keeping the property tax rate at 2.9 per cent, where it has been for the last three years, making it among the lowest tax rates in the province.

However home prices in Surrey, as well as most of the Fraser Valley area, are expected to continue to rise in 2022 as many move out of urban centres and intro suburban areas due to the pandemic.

For Metro Vancouver Regional District property owners, there will be an average annual increase of $21 per property due this year, with a 3.5 per cent increase in property tax.

Renters will also pay more than last year

The provincial rent freeze lifted on Jan. 1, meaning landlords will be allowed to raise rents again in 2022. However, the rent increase has been capped at 1.5 per cent, based on inflation.

Landlords must give three months’ notice if they plan to raise rates.

The decision to lift the freeze has been criticized by the Vancouver Tenants Union, and applauded by LandlordBC.

Read more: The maximum allowable rent increase in B.C. for 2022 is capped at 1.5 per cent

Costs to decrease for some utilities

While owning a home is expected to cost more, the average cost of heating it will not. BC Hydro rates will decrease in the new year, a second time in the past three years the utility company will bring costs down for customers.

The requested bill decrease of 1.4 per cent starting in April was filed with the BC Utilities Commission, to save the average homeowner about $23 per year. Commercial customers will be reduced by nearly $1,000 a year, and industrial costs will decrease by 1.62 per cent.

2023 and 2024, however, will see an increase again getting closer to three per cent, but still way below what others in North America pay for electricity.

Food prices to keep rising 

The national cost of buying groceries is expected to rise between five and seven per cent in 2022, with B.C. to see food on the higher end of that.

The average home could spend nearly $1,000 more on food than they did in the previous year due to several factors from inflation to ongoing supply chain issues.

The prediction was made by the Agri-Food Analytics Lab at Dalhousie University in its annual Canada’s Food Price Report 2022.

Read more: B.C. families could spend nearly $1,000 more on food in 2022

Dairy prices and restaurant menus will see the biggest rise, both are expected to see price increases of six to eight per cent.

As for ways to save money, the report suggests to seek lower price alternatives such as frozen vegetables, and avoid online grocery platforms where consumers pay up to eight per cent more for items.

Child care costs to decline

While many families are still waiting to find out if they will benefit from promises of affordable child care, the province says it will be expanding the $10-a-day child care by the end of 2022 for children under six.

The average fee a family is paying for childcare is also promised to go down, to as much as 50 per cent.

Families are expected to also benefit from free public transit for kids under 12, which was brought in in 2021 and is slatted to save about $675 per year in 2022.

With files from Lasia Kretzel, Hana Mae Nassar, Monika Gul and Sonia Aslam