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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 $47,937 of income at just 5.06% and topping out at 20.50% on income above $252,752. Combined with federal rates, a BC resident earning $100,000 pays roughly $24,000 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

Taxable IncomeBC Rate
Up to $47,9375.06%
$47,938 - $95,8757.70%
$95,876 - $110,07610.50%
$110,077 - $133,66412.29%
$133,665 - $181,23214.70%
$181,233 - $252,75216.80%
Over $252,75220.50%

Combined Federal + BC Rates

Taxable IncomeCombined Rate
Up to $47,93720.06%
$47,937 - $55,86722.70%
$55,867 - $95,87528.20%
$95,875 - $110,07631.00%
$110,076 - $111,73332.79%
$111,733 - $133,66438.29%
$133,664 - $173,20540.70%
$173,205 - $181,23244.02%
$181,232 - $246,75246.12%
$246,752 - $252,75249.80%
Over $252,75253.50%

BC Tax Credits

Non-Refundable Credits

Credit2026 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

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

Paid quarterly, income-tested.

BC Family Benefit

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

Tax Calculation Example

$100,000 Income in BC

BracketIncomeRateTax
Federal 1$55,86715%$8,380
Federal 2$44,13320.5%$9,047
BC 1$47,9375.06%$2,426
BC 2$47,9387.70%$3,691
BC 3$4,12510.50%$433
Total~$23,977

Before credits.

BC Sales Tax Advantage

PST Exemptions

Exempt ItemsPST
Groceries0%
Prescription drugs0%
Children’s clothing0%
Books0%

PST Rate

Item TypeRate
Most goods7%
Liquor10%
Accommodation8%
Vehicles7-20%

BC Home Owner Grant

Property Tax Reduction

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

Eligibility

RequirementDetails
Principal residenceIn BC
BC residentOn date of grant
Property valueUnder threshold

BC Housing Benefits

BC Rental Tax Credit

For RentersDetails
Low-incomeMay qualify through renter tax credits
Through taxesApply on return

First-Time Home Buyer

ProgramBenefit
Property Transfer Tax ExemptionUp to $500K exempt
Newly Built ExemptionUp to $750K exempt

Comparison to Other Provinces

Top Marginal Rates

ProvinceTop Rate
BC53.50%
Alberta48.00%
Ontario53.53%
Quebec53.31%

Overall Tax Burden

FactorBC Advantage
No PST on groceriesSaves ~$500/year
Climate creditsQuarterly payments
Health premiumsNone (eliminated)

Tax Planning in BC

Strategies

StrategyBenefit
RRSP contributionsReduce taxable income
Dividend incomeBC dividend tax credit
Capital gainsLower effective rate
Income splittingSpousal RRSP

BC-Specific Considerations

FactorPlanning
7 bracketsMore opportunity to optimize
High top rateRRSP more valuable
Climate creditFile 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 pricePTT rate
First $200,0001%
$200,001–$2,000,0002%
$2,000,001–$3,000,0003%
Over $3,000,0005%

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.