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British Columbia Income Tax Calculator 2023 - 2025.

This Page Was Last Updated: March 18, 2025
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British Columbia
Estimate your 2023 - 2025 total income taxeswith only a few details about your income
Inputs
Tax Year
Marital Status
Employment Income
Self-Employment Income
Other Income
Capital Gains
RRSP Contributions
Additional Deductions
Eligible Dividends
Ineligible Dividends
Results
Total Income
$50,000
Deductions
$465

Total Tax
$9,610
Federal Tax
$4,322
Provincial Tax
$1,701
EI Premiums
$820
CPP Contribution
$2,767
CPP2 Contribution
$0

After Tax Income
$40,390
Average Tax Rate
19.22%
Marginal Tax Rate
22.70%

These calculations include the following tax credits: basic personal amount, Canada employment amount, CPP/QPP, CPP2/QPP2, QPIP, EI premiums, dividend tax credits, Canada workers benefit (CWB), and Ontario LIFT. You may be eligible for other tax credits based on your province and income.

Facts

Interesting Facts

  • As of 2021, 19% of the income tax filers in B.C. had a total income between $40,000 and $59,999.
  • The top 1% of earners accounted for 10.8% of the total income reported in B.C. in 2021. This group accounted for 24.2% of the federal and provincial income taxes paid by B.C. income tax filers in that year.
  • Before taxes, an employment income of $250,000 is 5x more than an income of $50,000. However, the after-tax income is about 4x as much.
Canada Federal and British Columbia Tax Brackets 2025
Your taxable income places you in the following tax brackets.
Federal tax bracketFederal tax rates
$57,375 or less 15%
$57,376 to $114,75020.5%
$114,751 to $177,88226%
$177,883 to $253,41429%
More than $253,415 33%
British Columbia tax bracketBritish Columbia tax rates
Up to $49,279 5.06%
$49,280 to $98,5607.7%
$98,561 to $113,15810.5%
$113,159 to $137,40712.29%
$137,408 to $186,30614.7%
$186,307 to $259,82916.8%
More than $259,830 20.5%
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British Columbia Income Tax Brackets

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 2025, the tax brackets have increased by 2.8% (down from 5.0% in 2024) from the prior year. The tax brackets are as follows.

British Columbia Provincial Income Tax Brackets

202320242025Rate
Less than $11,981Less than $12,580Less than $12,9320%
$11,982 to $45,654$12,581 to $47,937$12,933 to $49,2795.06%
$45,655 to $91,309$47,938 to $95,875$49,280 to $98,5607.7%
$91,310 to $104,835$95,876 to $110,077$98,561 to $113,15810.5%
$104,836 to $127,300$110,078 to $133,664$113,159 to $137,40712.29%
$127,301 to $172,602$133,665 to $181,232$137,408 to $186,30614.7%
$172,603 to $240,716$181,233 to $252,752$186,307 to $259,82916.8%
$240,717 and above$252,753 and above$259,830 and above20.5%

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 year 2020/21, he increased the tax rate from 14.7% to 16.8% for those with incomes over $155,000. Premier David Eby (NDP) succeeded as the Premier of B.C. in 2022 and has not changed the tax rates adopted in 2020/21.

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 2025 tax year, individuals with an income below $40,807 can claim up to $562 from their income tax bill. However, this tax credit is reduced by 3.56% of income above $25,020.

For example, if your income is $30,000, your tax reduction credit would be $562 minus 3.56% of the amount over $25,020 ($4,980). The reduction would be $177.29 (3.56% of $4,980), resulting in a tax reduction credit of $384.71.

B.C. Tax Reduction Credit

202320242025
Maximum Credit$521$547$562
Income Eligible for Maximum Credit$23,179$24,338$25,020
Maximum Income Threshold for Reduced Credit$37,814$39,703$40,807
Credit Reduction Factor3.56% of income above $23,1793.56% of income above $24,3383.56% of income above $25,020

Source: Government of British Columbia

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British Columbia Personal Amounts

B.C.'s basic personal amount for 2025 is $12,932 (up from $12,580 in 2024). You can also claim non-refundable tax credits up to $11,073 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 $1,108 in 2025 (up from $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 an annual remuneration greater than $500,000 are required to pay the B.C. employer health tax. The 2024 budget proposes to increase the exemption remuneration amount to $1,000,000 from the current $500,000.

Disclaimer:

  • Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
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