British Columbia Tax Brackets and Income Tax Rates
Tax brackets in British Columbia are indexed to the B.C. Consumer Price Index (BC CPI). This means that the tax brackets increase each year to adjust for inflation. By doing this, the provincial government can ensure that inflation does not push you into a higher tax bracket, forcing you to pay more taxes. For 2026, the tax brackets have increased by 2.2% (down from 2.8% in 2025 and 5.0% in 2024) from the prior year. The tax brackets are as follows.
British Columbia Provincial Income Tax Brackets
| 2023 | 2024 | 2025 | 2026 | Rate |
|---|---|---|---|---|
| Less than $11,981 | Less than $12,580 | Less than $12,932 | Less than $13,216 | 0% |
| $11,982 to $45,654 | $12,581 to $47,937 | $12,933 to $49,279 | $13,217 to $50,363 | 5.06% |
| $45,655 to $91,309 | $47,938 to $95,875 | $49,280 to $98,560 | $50,364 to $100,728 | 7.7% |
| $91,310 to $104,835 | $95,876 to $110,077 | $98,561 to $113,158 | $100,729 to $115,648 | 10.5% |
| $104,836 to $127,300 | $110,078 to $133,664 | $113,159 to $137,407 | $115,649 to $140,430 | 12.29% |
| $127,301 to $172,602 | $133,665 to $181,232 | $137,408 to $186,306 | $140,431 to $190,405 | 14.7% |
| $172,603 to $240,716 | $181,233 to $252,752 | $186,307 to $259,829 | $190,406 to $265,545 | 16.8% |
| $240,717 and above | $252,753 and above | $259,830 and above | $265,546 and above | 20.5% |
The History of BC Provincial Income Taxes
For most of the 1990s, BC was governed by NDP premiers, and income tax policy remained largely unchanged. That shifted dramatically in 2001, when Premier Gordon Campbell (Liberal) won a landslide majority and cut income tax rates by 25% across all brackets — one of the largest single tax reductions in BC history. His successor, Premier Christy Clark (Liberal), took office in 2011 and kept rates steady, but reduced Medical Services Plan (MSP) premiums and expanded the tax reduction credit in 2016.
After 16 years of Liberal government, Premier John Horgan (NDP) won the 2017 election. His government made sweeping changes in 2020: it fully eliminated MSP premiums, raised the rate on income over $155,000 from 14.7% to 16.8%, and introduced a new top bracket of 20.5% on income exceeding $220,000 — BC's highest-ever provincial rate. Premier David Eby (NDP) succeeded Horgan in late 2022 and has not changed the tax rates or bracket structure established in 2020.
B.C. Tax Reduction Credit
The B.C. tax reduction credit provides a non-refundable tax credit for those with net income below a certain amount. For the 2026 tax year, individuals with an income below $44,952 can claim up to $690 in B.C. tax reduction credit. The credit is reduced by 3.56% of income above $25,570.
For example, if your income is $30,000 in 2026, your tax reduction credit would be $690 minus 3.56% of the amount over $25,570 ($4,430). The reduction would be $157.71 (3.56% of $4,430), resulting in a tax reduction credit of $532.29.
B.C. Tax Reduction Credit
| 2023 | 2024 | 2025 | 2026 | |
|---|---|---|---|---|
| Maximum Credit | $521 | $547 | $562 | $690 |
| Income Eligible for Maximum Credit | $23,179 | $24,338 | $25,020 | $25,570 |
| Maximum Income Threshold for Reduced Credit | $37,814 | $39,703 | $40,807 | $44,952 |
| Credit Reduction Factor | 3.56% of income above $23,179 | 3.56% of income above $24,338 | 3.56% of income above $25,020 | 3.56% of income above $25,570 |
Source: Government of British Columbia
British Columbia Basic Personal Amount and Tax Credits
B.C.'s basic personal amount for 2026 is $13,216 (up from $12,932 in 2025 and $12,580 in 2024). You can also claim non-refundable tax credits up to $11,317 (up from $11,073 in 2025) if you have a spouse/common-law partner or an eligible dependent. The spousal and eligible dependent credits are reduced when the income of the spouse or eligible dependent exceeds $1,132 in 2026 (up from $1,108 in 2025 and $1,078 in 2024).
B.C. offers several other credits, including the B.C. caregiver credit, old age credit, pension credit, credit for the mentally or physically impaired, and more. You can find a complete list of available credits on the B.C. government website's personal income tax credits page.
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 to receive CPP payments, 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 costs 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 now been eliminated.
Employers with annual B.C. remuneration of $1,000,000 or less are exempt from the B.C. employer health tax. Employers with B.C. remuneration between $1,000,000.01 and $1,500,000 pay a reduced amount, while employers with B.C. remuneration above $1,500,000 pay the full employer health tax rate.
British Columbia Income Tax Calculator FAQs
Yes. WOWA's BC income tax calculator can estimate your British Columbia income tax for 2023, 2024, 2025, and 2026. Select the tax year in the calculator to use the correct federal and B.C. tax brackets, credits, CPP contributions, and EI premiums for that year.
Your B.C. income tax depends on your taxable income, deductions, tax credits, and the type of income you earn. WOWA's BC income tax calculator estimates your federal tax, provincial tax, CPP contributions, EI premiums, total tax, after-tax income, average tax rate, and marginal tax rate.
For 2026, B.C. provincial tax rates range from 5.06% to 20.5%. The lowest provincial tax bracket applies to taxable income up to $50,363, while the highest provincial tax rate applies to taxable income over $265,546.
Yes. British Columbia has provincial income tax in addition to federal income tax. Your total income tax includes both federal and B.C. provincial income tax, along with CPP contributions and EI premiums if applicable.