All the Numbers

Income tax in British Columbia

From the All the Numbers wiki · Tax

A British Columbia resident's provincial tax is worked out on the BC428, attached to the federal return, the same way as Ontario's: brackets on taxable income, then credits at the lowest rate.

The rules (2026)

Brackets: 5.6% up to $50,363; 7.7% to $100,728; 10.5% to $115,648; 12.29% to $140,430; 14.7% to $190,405; 16.8% to $265,545; 20.5% above.[1]

  • Basic personal amount: $13,216.[2]
  • Spouse or eligible dependant: $11,317, reduced by every dollar of the dependant's income above $1,132, so nil at $12,449.[3][4][5]
  • Age amount: $5,927 at 65 or over, less 15% of income above $44,119.[6]
  • Pension amount: $1,000, a fixed figure that is never indexed.[7]
  • CPP and EI: the base CPP contributions and EI premiums are credited at the lowest rate, as on the federal return.[8]
  • BC tax reduction: up to $690, less 3.56% of net income above $25,570; it can take tax to nil but is never paid out.[9] Ontario's reduction is measured against the tax itself; BC's against income.
  • Dividends: credits of 12% (eligible) and 1.96% (other) of the grossed-up dividend; see dividends.[10][11]
  • Minimum tax: 40% of the federal additional tax.[12] Foreign tax the federal credit did not absorb is credited on the T2036.[13]

There is no surtax and no health premium.

After 2026

British Columbia has frozen its dollar amounts — brackets, the basic, spouse and age amounts and the tax reduction — for 2027 to 2030; indexing resumes in 2031.[14] A projection follows the law as written: those years use the 2026 figures, and later years grow from them at the plan's rate. See tax brackets after 2026.

What the planner does

A British Columbia plan works out the BC428 for each person every year.

See also

  • How dividends are taxed · Canadian dividends are grossed up by 38% (eligible) or 15% (other), taxed as income, then reduced by a federal and Ontario dividend tax credit. The credits make dividends tax less than interest at the same income.
  • Tax brackets after 2026 are projected, not published · Every year after 2026 is taxed with the 2026 brackets, personal amounts, credits and CPP/EI ceilings grown at the plan's inflation rate. That is how CRA indexes them, but the real figures are announced each fall and will differ.

References

  1. ↑gov.bc.ca — Personal income tax rates, 2026 tax year: 5.60% to $50,363; 7.70% to $100,728; 10.50% to $115,648; 12.29% to $140,430; 14.70% to $190,405; 16.80% to $265,545; 20.50% over · British Columbia personal income tax brackets and rates · See the source · effective 2026-01-01
  2. ↑gov.bc.ca — 2026 B.C. basic tax credits: "Basic personal amount $13,216" · British Columbia basic personal amount · $13,216 · effective 2026-01-01
  3. ↑gov.bc.ca — 2026 B.C. basic tax credits: spouse or common-law partner $11,317; eligible dependant $11,317 · British Columbia spouse or eligible dependant amount, in full while the dependant's income is at or below the threshold · $11,317 · effective 2026-01-01
  4. ↑gov.bc.ca — "Credit reduced when spouse or common-law partner's income exceeds: $1,132 (2026)"; ITA (BC) s.4.3: B.1 − (C − B.2) · British Columbia spouse or eligible dependant amount: reduced dollar for dollar by the dependant's income above this · $1,132 · effective 2026-01-01
  5. ↑Income Tax Act (BC) s.4.3(1)(a)(ii): B.1 − (C − B.2) is nil when the spouse's income C reaches B.1 + B.2 = $11,317 + $1,132 · British Columbia spouse or eligible dependant amount: nil at this dependant income (the amount plus the threshold) · $12,449 · effective 2026-01-01
  6. ↑gov.bc.ca — Age $5,927, "Credit reduced when income exceeds: $44,119 (2026)"; Income Tax Act (BC) s.4.31: "B is 15% of the amount … by which the individual's income for the year would exceed" · British Columbia age amount (65 or older at year end), less 15% of income over the threshold · See the source · effective 2026-01-01
  7. ↑Income Tax Act (BC) s.4.32: "the smaller of (a) $1 000, and (b) the amount" of eligible pension income; gov.bc.ca: Pension $1,000, Indexed: No · British Columbia pension amount (not indexed) · $1,000 · effective 2002-01-01
  8. ↑gov.bc.ca — 2026 B.C. basic tax credits: EI (to a maximum of $1,123.07); CPP 4.95% of maximum contributory earnings ("Only base CPP contributions are eligible") · BC428 carries base CPP contributions and EI premiums as credits at the lowest BC rate · effective 2026-01-01
  9. ↑gov.bc.ca — 2026: base amount $690, net income threshold $25,570, reduction factor 3.56%, maximum net income $44,952; Income Tax Act (BC) s.4.301 (A − B), s.4.52(4.24) ($690 not indexed for 2026) · BC tax reduction credit: a maximum less a rate of net income over a threshold, non-refundable · See the source · effective 2026-01-01
  10. ↑gov.bc.ca — 2026 dividend tax credit: "eligible dividends 12%"; ITA (BC) s.4.69(b): 43 11/19% of the gross-up · British Columbia dividend tax credit on eligible dividends, as a share of the taxable (grossed-up) dividend · 12% · effective 2019-01-01
  11. ↑gov.bc.ca — 2026 dividend tax credit: "other than eligible dividends 1.96%"; ITA (BC) s.4.69(a): 15% of the gross-up · British Columbia dividend tax credit on other than eligible dividends, as a share of the taxable (grossed-up) dividend · 1.96% · effective 2019-01-01
  12. ↑gov.bc.ca — "The B.C. minimum tax is 40% of your federal alternative minimum tax for 2026"; Income Tax Act (BC) s.4.8 (A × B / C, the ratio to the nearest thousandth: 5.60 / 14 = 0.400) · British Columbia additional tax for minimum tax: this share of the federal additional tax (BC lowest rate over the federal lowest rate) · 40% · effective 2026-01-01
  13. ↑gov.bc.ca — Foreign tax credit: "complete the Provincial or Territorial Foreign Tax Credit form (T2036) and enter the amount … on … BC428" · British Columbia foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of BC tax · effective 2026-01-01
  14. ↑Income Tax Act (BC) s.4.52(4.25): "for the 2027 to 2030 taxation years, no amount expressed in dollars in a relevant provision is to be adjusted … except … section 8.3 (6) [renter's tax credit]" · British Columbia indexation pause: no dollar amount in the personal tax provisions is indexed for these tax years · See the source · effective 2027-01-01