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BC Income Tax Rates 2026 | British Columbia Tax Brackets

Updated

British Columbia’s seven-bracket tax system is one of the most progressive in Canada, taxing the first $50,363 of income at just 5.6% and topping out at 20.50% on income above $265,545. Combined with federal rates, a BC resident earning $100,000 pays roughly $23,300 in income tax before credits — competitive with Ontario and meaningfully lower than Quebec. BC also offers the Climate Action Tax Credit (quarterly cash payments to offset carbon taxes) and no provincial health premiums, making the effective tax burden more favourable than headline rates suggest.

BC Tax Brackets 2026

Provincial Tax Rates

Each portion of taxable income Rate
$0.00 to $50,363.00 5.6%
$50,363.01 to $100,728.00 7.7%
$100,728.01 to $115,648.00 10.5%
$115,648.01 to $140,430.00 12.29%
$140,430.01 to $190,405.00 14.7%
$190,405.01 to $265,545.00 16.8%
Over $265,545.01 20.5%

Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. Verified August 28, 2026.

Combined Federal + BC Rates

Each portion of taxable income Combined Federal + British Columbia Rate
Up to $50,363.00 19.6%
$50,363.00 to $58,523.00 21.7%
$58,523.00 to $100,728.00 28.2%
$100,728.00 to $115,648.00 31%
$115,648.00 to $117,045.00 32.79%
$117,045.00 to $140,430.00 38.29%
$140,430.00 to $181,440.00 40.7%
$181,440.00 to $190,405.00 43.7%
$190,405.00 to $258,482.00 45.8%
$258,482.00 to $265,545.00 49.8%
Over $265,545.00 53.5%

Combined marginal rate = federal rate + British Columbia rate at each income level, computed directly from 2026 bracket data (not a separately-maintained table). Source: Canada Revenue Agency – Canadian income tax rates for individuals and the provincial revenue agency, verified August 28, 2026.

BC Tax Credits

Non-Refundable Credits

Credit 2026 Amount
Basic personal amount ~$12,932
Spouse/CLP amount ~$11,089
Age amount (65+) ~$5,903
Disability amount ~$9,428
Pension income ~$1,000

BC Climate Action Tax Credit

Recipient Annual Amount
Adult ~$504
Spouse ~$252
Child ~$126
Single parent bonus ~$252

Paid quarterly, income-tested.

BC Family Benefit

Children Maximum (approximate)
First child ~$2,188/year
Second child ~$1,375/year
Third+ child ~$1,125/year

Tax Calculation Example

$100,000 Income in BC

Bracket Income Rate Tax
Federal 1 $58,523 14% $8,193
Federal 2 $41,477 20.5% $8,503
BC 1 $50,363 5.6% $2,820
BC 2 $49,637 7.7% $3,822
Total ~$23,338

Before credits.

BC Sales Tax Advantage

PST Exemptions

Exempt Items PST
Groceries 0%
Prescription drugs 0%
Children’s clothing 0%
Books 0%

PST Rate

Item Type Rate
Most goods 7%
Liquor 10%
Accommodation 8%
Vehicles 7-20%

BC Home Owner Grant

Property Tax Reduction

Type Grant Amount
Regular ~$570
Senior/Disabled ~$845
Additional senior ~$275

Eligibility

Requirement Details
Principal residence In BC
BC resident On date of grant
Property value Under threshold

BC Housing Benefits

BC Rental Tax Credit

For Renters Details
Low-income May qualify through renter tax credits
Through taxes Apply on return

First-Time Home Buyer

Program Benefit
Property Transfer Tax Exemption Up to $500K exempt
Newly Built Exemption Up to $750K exempt

Comparison to Other Provinces

Top Marginal Rates

Province Top Rate
BC 53.50%
Alberta 48.00%
Ontario 53.53%
Quebec 53.31%

Overall Tax Burden

Factor BC Advantage
No PST on groceries Saves ~$500/year
Climate credits Quarterly payments
Health premiums None (eliminated)

Tax Planning in BC

Strategies

Strategy Benefit
RRSP contributions Reduce taxable income
Dividend income BC dividend tax credit
Capital gains Lower effective rate
Income splitting Spousal RRSP

BC-Specific Considerations

Factor Planning
7 brackets More opportunity to optimize
High top rate RRSP more valuable
Climate credit File return to receive

The Bottom Line

BC residents benefit from a relatively moderate tax environment: competitive income tax rates, no health premium, no PST on groceries or children’s clothing, and quarterly Climate Action Tax Credits. The high top rate of 53.50% makes RRSP contributions especially valuable for high earners, and BC’s first-time home buyer property transfer tax exemption can save up to $8,000 on purchases under $500,000. Use our salary calculator to see your exact take-home pay, and compare BC’s overall burden to other provinces if you’re considering a move.

BC property transfer tax (PTT)

Beyond income tax, BC residents buying property face the Property Transfer Tax:

Purchase price PTT rate
First $200,000 1%
$200,001–$2,000,000 2%
$2,000,001–$3,000,000 3%
Over $3,000,000 5%

First-time buyer exemption: full exemption for purchases under $835,000 (partial for $835,001–$860,000) for Canadian citizens or permanent residents who have never owned a home anywhere. This can save up to $13,700.