British Columbia Income Tax Brackets
Tax brackets in British Columbia are indexed to the B.C. Consumer Price Index (BC CPI). Tax brackets will increase by 1.1% for 2021. For 2020, tax brackets increased by 2.5%.
British Columbia Provincial Income Tax Changes 2021
| 2020 | 2021 | Rate |
|---|---|---|
| Less than $10,949 | Less than $11,070 | 0% |
| $10,950 to $41,725 | $11,070 to $42,184 | 5.06% |
| $41,726 to $83,451 | $42,185 to $84,369 | 7.70% |
| $83,452 to $95,812 | $84,370 to $96,866 | 10.50% |
| $95,813 to $116,344 | $96,867 to $117,623 | 12.29% |
| $116,345 to $157,748 | $117,624 to $159,483 | 14.70% |
| $157,749 to $220,000 | $159,484 to $222,420 | 16.80% |
| More than $220,000 | More than $220,420 | 20.50% |
B.C. Tax Reduction Credit
The B.C. tax reduction credit gives a non-refundable tax credit of up to $476 in 2020 for individuals with an income below $21,185. This tax credit is reduced by 3.56% for income above $21,185, meaning that the maximum income that is eligible for the tax reduction credit is $34,556.
For example, if your income is $25,000, your tax reduction credit will be $476 minus 3.56% of your income above $21,185, which will reduce your credit by $135.81. This gives you a tax reduction credit of $340.19.
B.C. Tax Reduction Credit Changes
| 2020 | 2021 | |
|---|---|---|
| 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 Factor | 3.56% of income above $21,185 | 3.56% of income above $21,418 |
Source: Government of British Columbia
B.C. Tax Reduction Credits Examples
| Income | Calculation | Tax Reduction Credit |
|---|---|---|
| $21,185 | $476 - $0 | $476 |
| $25,000 | $476 - (($25,000 - $21,185) x 3.56%) | $340.19 |
| $30,000 | $476 - (($30,000 - $21,185) x 3.56%) | $162.18 |
| $34,556 | $476 - (($34,556 - $21,185) x 3.56%) | $0 |
British Columbia Personal Amounts
B.C.'s basic personal amount for 2020 is $10,949, and will increase to $11,070 in 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
If you work in British Columbia, you will be required to contribute towards both the Canada Pension Plan (CPP) and pay Employment Insurance (EI) premiums.
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.
