British Columbia Income Tax Calculator 2021.

British Columbia-image
British Columbia
Estimate your 2020 & 2021 total income taxeswith only a few details about your income
Tax Year
Your Employment Status
Employment Income
Other Income
Capital Gains

Results

Total Income
$50,000
Total Tax
$10,983.12
Income Tax
$7,658.87
EI Premiums
$790
CPP ContributionQPP Contribution
$2,534.25
After Tax Income
$39,016.88
Average Tax Rate
15.32%
Marginal Tax Rate
28.2%
Facts

Interesting Facts

  • In BC, those earning between $50,000-$99,999 pay the highest share of provincial income tax. In 2014, this bracket paid 32.6% of provincial tax. However, this bracket also represents the second-largest portion of tax filers at 23.1%
  • The highest income tax bracket only represents 0.8% of tax filers yet pay the second-largest share of provincial income taxes at 22.8%
  • Before taxes, an employment income of $250,000 is 5x more than an income of $50,000. However, the after-tax income is only 4.0x as much.
Canada Federal and British Columbia Tax Brackets 2021
Your taxable income places you in the following tax brackets.
Federal tax bracketFederal tax rates
Less than $13,808 0%
$13,809 to $49,02015%
$49,021 to $98,04020.5%
$98,041 to $151,97826%
$151,979 to $216,51129%
More than $216,512 33%
British Columbia tax bracketBritish Columbia tax rates
Less than $11,070 0%
$11,071 to $42,1845.06%
$42,185 to $84,3697.7%
$84,370 to $96,86610.5%
$96,867 to $117,62312.29%
$117,624 to $159,48314.7%
$159,484 to $222,42016.8%
More than $222,421 20.5%

British Columbia Income Tax Brackets

Tax brackets in British Columbia are indexed to the B.C. Consumer Price Index (BC CPI). This means each year the tax brackets increase to adjust for inflation. By doing this, the provincial government can be sure that inflation is not pushing you into a higher tax bracket and forcing you to pay more taxes. In 2021, the tax brackets increased by 1.1% from the prior year.

Anticipated 2022 Changes

As previously mentioned, the income tax brackets rise every year to match the consumer price index (CPI) increase. In 2022, the BC provincial tax brackets are expected to increase by 2.1%. However, this has not been confirmed by the Canada Revenue Agency. There have been no announcements about the 2022 provincial income tax or tax reduction credit.

The History of BC Provincial Income Taxes

From 1991 to 2000, BC had a consecutive streak of New Democratic Party Premiers. As a result, there were not many changes to the income tax policy. However, in 2001, Premier Gordon Campbell (Liberal) was elected and slashed income tax rates by 25% in each tax bracket. Following Campbell’s ten-year run, Premier Christy Clark (Liberal) took office in 2011. She did not change the income tax rates but slashed the Medical Services Plan (MSP) premiums. Clark also increased the tax reduction credit in 2016.

After 16 years of Liberal control, Premier John Horgan (NDP) took office in 2017. In the 2019/20 year, he increased the tax rate from 14.7% to 16.8% for those with incomes over $155,000.

British Columbia Provincial Income Tax Changes 2021

20202021Rate
Less than $10,949Less than $11,0700%
$10,950 to $41,725$11,070 to $42,1845.06%
$41,726 to $83,451$42,185 to $84,3697.70%
$83,452 to $95,812$84,370 to $96,86610.50%
$95,813 to $116,344$96,867 to $117,62312.29%
$116,345 to $157,748$117,624 to $159,48314.70%
$157,749 to $220,000$159,484 to $222,42016.80%
More than $220,000More than $220,42020.50%

B.C. Tax Reduction Credit

The B.C. tax reduction credit gives a non-refundable tax credit for those with net income below a certain amount. For the 2021 tax year, individuals with an income below $21,418 can deduct up to $481 from their income tax bill. However, this tax credit is reduced by 3.56% for income above $21,418, meaning that the maximum income eligible for the tax reduction credit is $34,929.

For example, if your income is $25,000, your tax reduction credit will be $481 minus 3.56% of your income above $21,418, which will reduce your credit by $127.52. This gives you a tax reduction credit of $353.48.

B.C. Tax Reduction Credit Changes

20202021
Maximum Credit$476$481
Maximum Income Eligible for Maximum Credit$21,185$21,418
Maximum Income Eligible for Reduced Credit$34,556$34,929
Credit Reduction Factor3.56% of income above $21,1853.56% of income above $21,418

Source: Government of British Columbia

B.C. Tax Reduction Credits Examples

IncomeCalculationTax Reduction Credit
$21,418$481 - $0$481
$25,000$481 - (($25,000 - $21,418) x 3.56%)$353.48
$30,000$481 - (($30,000 - $21,418) x 3.56%)$175.48
$34,929$481 - (($34,556 - $21,418) x 3.56%)$0

British Columbia Personal Amounts

B.C.'s basic personal amount for 2021 is $11,070. The 2022 amount has not been announced yet but is anticipated to be around $11,302.47 (a 2.1% increase from 2021).

You will also receive non-refundable tax credits if you have a spouse/common-law partner or an eligible dependent.

British Columbia Personal Amounts 2021

Basic Personal Amount$11,070
Spouse or Common-Law Partner$10,427
Eligible Dependant$10,427

Canada Pension Plan and Employment Insurance

The Canada Pension Plan (CPP) is a monthly, taxable stipend paid out as part of your income in retirement. The amount you get in retirement is determined by your average earnings, contributions to the program, and the age you start receiving payments. To be eligible for CPP, you must be over 60 and have made valid contributions.

If you are employed in British Columbia, you will be required to contribute towards both the Canada Pension Plan (CPP) and pay Employment Insurance (EI) premiums. Employers will jointly contribute to CPP and match your EI payments at a typical rate of 1.4x. Self-employed individuals have the option of contributing to EI. However, self-employed people must fully contribute to CPP instead of splitting the cost with their employer.

Prior to January 1, 2020, residents of British Columbia were also required to pay premiums towards the Medical Services Plan (MSP). MSP premiums have been eliminated.

Employers with an annual remuneration greater than $500,000 will still be required to pay the B.C. employer health tax.