Capital Gains Tax in British Columbia
British Columbia spreads its income tax over seven brackets, from 5.6% on the first $50,363 to 20.5% above $265,545. With that many steps, the rate on a BC capital gain depends closely on the income it is added to, and a large gain can climb through several of them.
Only part of a gain is taxed: the inclusion rate adds 50% of it to income. At the very top, BC’s combined federal and provincial rate is 53.50%, a top capital gains rate of 26.75%. The Canada-wide capital gains tax calculator explains the rules that apply in every province.
BC Tax Brackets and Your Gain
All seven BC tax brackets, with BC’s credits and its tax reduction for lower incomes, are set out on the British Columbia income tax page. Here they are merged with the federal brackets, since a gain is taxed at whichever pair of rates your income reaches.
Capital Gains Tax Rates in British Columbia
The federal and BC thresholds fall at different incomes, so the combined schedule has more rows than either one alone:
| Taxable Income Range | Combined Marginal Rate | Effective Capital Gains Rate |
|---|---|---|
| Up to $50,363 | 19.60% | 9.80% |
| $50,363 – $58,523 | 21.70% | 10.85% |
| $58,523 – $100,728 | 28.20% | 14.10% |
| $100,728 – $115,648 | 31.00% | 15.50% |
| $115,648 – $117,045 | 32.79% | 16.40% |
| $117,045 – $140,430 | 38.29% | 19.15% |
| $140,430 – $181,440 | 40.70% | 20.35% |
| $181,440 – $190,405 | 43.70% | 21.85% |
| $190,405 – $258,482 | 45.80% | 22.90% |
| $258,482 – $265,545 | 49.80% | 24.90% |
| Over $265,545 (top bracket) | 53.50% | 26.75% |
The top rate on a gain in BC, 26.75%, begins above $265,545, the start of BC’s seventh bracket.
Worked Example: Capital Gains Tax in British Columbia
A Vancouver professional with $145,000 of salary sells shares held for years, realizing a $50,000 capital gain. Of that, $25,000 is taxable, bringing taxable income to $170,000.
At that income the taxable gain falls entirely within BC’s 14.7% bracket ($140,430 to $190,405) and the federal 26% bracket ($117,045 to $181,440). The gain therefore costs $6,500 in federal tax plus $3,675 in BC tax: $10,175, an effective rate of 20.35% on the $50,000 gain.
A bigger gain would reach BC’s next threshold at $190,405 and be taxed at 16.8% provincially beyond it. Like every example in this hub, this one applies marginal rates only (see the method on the main page).
How British Columbia Compares
In neighbouring Alberta, the top capital gains rate is 24.00%, set against 26.75% in BC. The rest of the country is in the all-province table.
BC Points That Affect a Gain
Income-tested credits. A taxable capital gain counts in net income, which is what the BC climate action tax credit and other income-tested payments are based on, so a large gain can reduce them.
Property taxes are separate. BC’s speculation and vacancy tax is an annual tax on certain residential property and is not part of the capital gains calculation. A home that qualifies for the principal residence exemption has no taxable gain at all.
Related Calculators
- British Columbia income tax: BC brackets, credits and tax at several incomes
- Income tax calculator: combined federal and BC tax on your whole income
- Capital gains on rental property: selling a rental or second property
Sources
The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and September 23, 2026. How we check facts.
- Canada Revenue Agency: Current year tax rates and income brackets (2026) - Personal income tax
- Canada Revenue Agency: Capital Gains – 2025
- Canada Revenue Agency: Payroll Deductions Formulas - 122nd Edition Effective January 1, 2026
- Gouvernement du Québec: Parameters of the Personal Income Tax System for 2026