Province guide · British Columbia
British Columbia Income Tax Guide 2026
British Columbia has seven provincial income tax brackets in 2026 — more than any other province in this guide — and a top marginal provincial rate of 20.5%, the highest among major Canadian provinces. However, BC also offers meaningful low-income benefits like the BC Climate Action Tax Credit that reduce the net burden for lower and middle earners.
Lowest provincial rate
5.06%
On income up to $45,654
Top provincial rate
20.50%
On income over $240,716
Top combined rate
53.50%
Federal + provincial
HST rate
12%
5% federal + 7% provincial PST
BC 2026 income tax brackets and rates
BC uses seven progressive brackets. Like all Canadian provinces, each rate applies only to income within that specific bracket — not to your total income. The 20.5% top rate applies only to income above $240,716.
| Taxable income | Provincial rate |
|---|---|
| Up to $45,654 | 5.06% |
| $45,654 to $91,310 | 7.70% |
| $91,310 to $104,835 | 10.50% |
| $104,835 to $127,299 | 12.29% |
| $127,299 to $172,602 | 14.70% |
| $172,602 to $240,716 | 16.80% |
| Over $240,716 | 20.50% |
Brackets are indexed annually to the BC consumer price index. These are the approved 2026 thresholds.
Combined federal + BC rates 2026
The combined rate reflects both the federal brackets and the BC provincial brackets. Because BC and the federal government use different thresholds, the combined marginal rate changes at multiple points as income rises.
| Income range (approx.) | Federal | BC provincial | Combined |
|---|---|---|---|
| $0 – $45,654 | 15% | 5.06% | 20.06% |
| $45,654 – $57,375 | 15% | 7.70% | 22.70% |
| $57,375 – $91,310 | 20.5% | 7.70% | 28.20% |
| $91,310 – $104,835 | 20.5% | 10.50% | 31.00% |
| $104,835 – $114,750 | 20.5% | 12.29% | 32.79% |
| $114,750 – $127,299 | 26% | 12.29% | 38.29% |
| $127,299 – $158,519 | 26% | 14.70% | 40.70% |
| $158,519 – $172,602 | 29% | 14.70% | 43.70% |
| $172,602 – $240,716 | 29–33% | 16.80% | 45.80–49.80% |
| Over $240,716 | 33% | 20.50% | 53.50% |
Federal thresholds are approximate for 2026. Use our income tax calculator for a precise estimate using your actual numbers.
Worked example: $75,000 salary in BC
Here is how provincial tax works for someone earning $75,000 in BC in 2026, before applying personal credits:
Step 1 — Apply the basic personal amount. BC's 2026 basic personal amount is approximately $11,981. Taxable income after basic personal: $75,000 − $11,981 = $63,019.
Step 2 — First bracket (5.06% on the first $45,654). $45,654 × 5.06% = $2,310
Step 3 — Second bracket (7.70% on the next $17,365). ($63,019 − $45,654) = $17,365 × 7.70% = $1,337
Total BC provincial tax (before credits): $2,310 + $1,337 = $3,647
This does not include your BC Low Income Tax Reduction or any other personal credits. Your actual tax payable will be lower if your income is at the lower end, or if you have eligible deductions.
BC-specific tax credits and benefits
BC offers several refundable and non-refundable provincial credits. Refundable credits are paid to you even if you owe no tax. Non-refundable credits reduce your tax but do not generate a refund if they exceed your tax owing.
BC Climate Action Tax Credit (BCCATC)
The BCCATC is a quarterly refundable credit designed to offset the cost of the provincial carbon tax for low- and middle-income residents. For 2026, the maximum annual credit is approximately $504 for adults and $126 per child. A family of four could receive up to roughly $1,008 per year.
The credit phases out for individuals with net income above $41,000 (approximately) and for families above $51,000. Payments are made quarterly in January, April, July, and October, delivered with your GST/HST credit payment from CRA. You do not need to apply separately — CRA calculates it based on your filed return.
BC Family Benefit
The BC Family Benefit is a monthly non-taxable payment for families with children under 18. For 2026, the benefit is approximately $1,765 per year for the first child, $1,116 for the second, and $930 for each additional child. An enhanced amount is available for single-parent families.
The benefit starts phasing out at net family income of about $35,902 and reduces to a minimum amount above $114,000. CRA administers it alongside the federal Canada Child Benefit in a combined monthly payment. You automatically receive it by filing your return and having an eligible child registered.
Example: A family in Kelowna with two children under 10 and a net family income of $65,000 would receive approximately $2,881 per year from the BC Family Benefit — about $240 per month — in addition to the federal CCB.
BC Low Income Climate Action Tax Credit
This additional refundable credit supplements the BCCATC for very low-income individuals. It is calculated automatically when you file and phases out at higher income levels.
Farmers' Food Donation Tax Credit
BC farming businesses that donate qualifying agricultural food products to registered charities that distribute food to those in need can claim a non-refundable provincial credit of 25% of the eligible fair market value of donated products. The credit is in addition to the federal charitable donation credit already available for such donations.
BC Training and Education Savings Grant (BCTESG)
BC offers a one-time $1,200 grant for children born on or after January 1, 2006, deposited into a Registered Education Savings Plan (RESP). To receive it, you must apply between the child's 6th and 9th birthday. Both the child and the subscriber (parent or guardian) must be BC residents.
This grant does not reduce your taxes directly but is essentially free money for education savings. To get it, open an RESP, apply through the financial institution holding the RESP, and file your tax return each year. There is no income test — every BC family with an eligible child qualifies.
BC Mining Flow-Through Share Tax Credit
Individuals who invest in qualifying BC mineral exploration flow-through shares can claim a 20% provincial non-refundable credit. This stacks with the federal Mineral Exploration Tax Credit (15%), giving a combined credit of up to 35% of the qualifying investment amount.
BC Low Income Tax Reduction
BC's low income tax reduction reduces or eliminates provincial income tax for lower earners. In 2026, the reduction is worth up to approximately $580 for individuals and $1,010 for families. It phases out as income rises above certain thresholds, ensuring that very low earners pay little or no provincial tax.
BC's sales tax: PST and GST separately
Unlike Ontario and most other provinces that harmonized their sales taxes into the HST, BC returned to a separate PST structure in 2013. This means:
- 5% federal GST applies to most goods and services.
- 7% BC PST applies to most goods and some services, but has its own exemptions that differ from the GST list.
- The combined rate on most purchases is 12%.
- Some items are PST-exempt but not GST-exempt (or vice versa), which creates complexity for businesses.
For income tax purposes, the PST/GST split matters primarily for self-employed individuals and businesses that must register for and remit sales taxes. The combined effective rate is the same as Ontario's HST (12% vs. Ontario's 13%).
Filing your BC provincial taxes
BC residents file their provincial tax as part of the federal T1 General return. BC provincial tax is calculated on Schedule BC428. There is no separate BC return. CRA collects both federal and BC provincial taxes. The same federal deadlines apply:
| Situation | Filing deadline | Balance due |
|---|---|---|
| Employed / investment income | April 30, 2027 | April 30, 2027 |
| Self-employed (or spouse) | June 15, 2027 | April 30, 2027 |
| Instalment payers | — | Mar 15, Jun 15, Sep 15, Dec 15 |
Deductions that work for BC residents
The same federal deductions — RRSP contributions, childcare expenses, employment expenses, moving expenses, and so on — reduce your provincial taxable income because BC uses the same income base as the federal return. Key deductions worth knowing:
RRSP contributions
Reduce your taxable income at both federal and BC rates. If you are in BC's 7.70% bracket (income $45,654–$91,310) and you contribute $10,000 to your RRSP, you save about $770 in BC provincial tax plus $2,050 in federal tax — a combined $2,820 immediate tax refund.
Childcare expenses
Up to $8,000 per child under 7 and $5,000 per child aged 7–15. Must be claimed by the lower-income spouse. In BC, with the 7.70% provincial rate and the combined federal rate of 20.5%, a $5,000 childcare deduction saves roughly $1,410 in combined tax for a middle-income earner.
Home office expenses
BC residents who work from home and have a signed T2200 from their employer can deduct eligible home office expenses. The flat rate method ($2/day, up to $500) was a COVID-era measure and no longer applies — you must use the detailed method with a T2200.
Frequently asked questions
Why does BC have seven brackets when Alberta has only five?
Each province sets its own bracket structure. BC added additional top brackets in recent years to increase progressivity — the idea being that higher earners pay a meaningfully higher rate. Alberta went the other direction, simplifying its structure. There is no federal requirement for the number of brackets.
How does the BC Climate Action Tax Credit get paid?
CRA calculates it based on your filed return and delivers it quarterly (January, April, July, October) with your federal GST/HST credit payment. You do not need a separate application — filing your return is sufficient. If you have direct deposit set up with CRA, the payment goes to the same bank account.
I just moved to BC from Alberta. Do I pay BC or Alberta tax this year?
You pay tax in the province where you are resident on December 31. If you moved to BC on July 1 and are a BC resident on December 31, you pay BC provincial tax for the entire year — all your income is subject to BC rates. The provincial credits are prorated or calculated on the full year, depending on the specific credit. Keep your move documents in case CRA asks.
Does BC have a surtax like Ontario?
No. BC does not have a surtax. BC's top combined rate of 53.50% is achieved purely through the seven-bracket structure plus the 33% federal top rate. Ontario, by contrast, uses only five brackets but adds a surtax that pushes effective rates above 53% for high earners.
What is the BC basic personal amount for 2026?
BC's basic personal amount for 2026 is approximately $11,981. Like the federal basic personal amount, this is a non-refundable credit worth about $606 in provincial tax savings (calculated at the 5.06% lowest rate). The first $11,981 of income is effectively tax-free at the BC provincial level.
Calculate your BC tax
Get a full breakdown of your federal and BC provincial tax, including all major credits.
Rates and thresholds reflect the 2026 BC provincial budget and CRA indexation. For authoritative figures, consult the BC Ministry of Finance or a licensed tax professional. This guide is for informational purposes only.