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British Columbia has paused indexation of its personal income tax brackets and non-refundable credit amounts for the 2027 to 2030 tax years. They stay at 2026 levels, for example $50,363 for the first bracket and $13,216 for the basic personal amount, and indexing resumes for 2031. Federal amounts normally move every year, so BC’s thresholds will fall behind them.
What exactly did BC pause?
The BC tax rates page says Budget 2026 paused the indexation of the tax brackets for the 2027 to 2030 tax years and that indexation will resume for the 2031 and subsequent tax years. The basic credits page says the same about the basic personal tax credits, and the budget tax changes page describes brackets and non-refundable credits as “temporarily paused at their 2026 levels”. Until now BC moved these amounts each year with its own consumer price index. The 2026 increase was 2.2%. For 2027 to 2030 the increase is zero.
Two other changes from the same budget are separate from the pause. The lowest rate rose from 5.06% to 5.60% for 2026 and later years, and the maximum BC tax reduction credit rose by $115 to $690 for 2026. The basic credits page adds that indexation of the tax reduction credit is paused too. The budget tax changes page noted that the budget measures were subject to legislative approval of Bill 2, the Budget Measures Implementation Act, 2026. The personal income tax pages now describe the pause in the past tense, but check the BC pages for the current legal status before you rely on it.
What are BC’s brackets and main credit amounts in 2026?
These are the amounts that stay in place through the 2030 tax year under the pause. The bracket limits are BC taxable income.
| BC taxable income, 2026 | Rate |
|---|---|
| $0 to $50,363 | 5.60% |
| $50,363 to $100,728 | 7.70% |
| $100,728 to $115,648 | 10.50% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.70% |
| $190,405 to $265,545 | 16.80% |
| Over $265,545 | 20.50% |
| Credit amount | 2026 | 2025 |
|---|---|---|
| Basic personal amount | $13,216 | $12,932 |
| Spouse or common-law partner | $11,317 | $11,073 |
| Age amount (65 and over) | $5,927 | $5,799 |
| Disability amount | $9,913 | $9,699 |
| BC caregiver amount | $5,784 | $5,659 |
The BC credits page marks each of these as indexed, which is why the pause reaches them. A credit amount is multiplied by the lowest rate, 5.60%, to get the tax it saves.
What is bracket creep, and what does a raise look like under the pause?
Bracket creep happens when your pay rises with prices but the bracket lines stay where they are. More of your income lands in higher brackets, so your tax grows faster than your pay even though no rate changed. Indexation is the fix. The pause takes it away in BC for four tax years.
The example uses 2026 rules, because the 2027 federal numbers have not been published yet (checked 31 October 2026). Take a BC employee who earns $100,000 and gets a 3% raise to $103,000. We ran both salaries through the site engine for BC. This is our calculation, not an official figure.
| Salary | Taxable income | BC tax | Federal plus BC rate on the next dollar |
|---|---|---|---|
| $100,000 | $98,873 | $5,555.52 | 28.2% |
| $103,000 | $101,873 | $5,818.58 | 31.0% |
The raise adds $3,000 of pay and $263.06 of BC tax. The new taxable income is above $100,728, so $1,145 of it is taxed at 10.50% instead of 7.70%, and the combined federal and BC rate on the next dollar rises from 28.2% to 31.0%. Taxable income here is salary less the enhanced CPP deduction.
Now suppose BC had kept indexing and its brackets and basic personal amount had risen 2.2%, the same as in 2026. That is an assumption for comparison, not a BC figure. The 10.50% bracket would start at about $102,944, the $101,873 would stay in the 7.70% bracket, and BC tax on the $103,000 salary would be $5,746.96. The gap is $71.62 for the year. It is the cost of one frozen year for this worker, and the pause lasts four. The federal side also matters, and it cannot be calculated until the federal 2027 numbers are out.
Who is affected most?
Anyone whose income rises faster than prices. The effect is largest for people who sit close to a bracket line, such as $100,728 or $115,648, because a raise there moves income into a bracket with a higher rate. The rates step from 5.60% at the bottom to 20.50% at the top, so higher earners cross more lines.
The basic personal amount is hit too. At $13,216 it is worth $740.10 of BC tax. If it had risen 2.2% it would have added another $16.28. That is small in one year, and it is the same for everyone who owes tax. People on fixed incomes feel less bracket creep, but their age amount and other credits stop growing as well.
What is not paused?
- Federal brackets and credits. The federal government indexes by its own factor, and the 2027 factor has not been published yet. See federal tax brackets and the 2027 indexation factor.
- BC tax rates. The pause covers thresholds and credit amounts. The 5.60% lowest rate applies for 2026 and later years.
- Credits that BC pages list as not indexed, such as the pension amount of $1,000 and the volunteer firefighter and search and rescue amount of $6,000.
- Credits that follow your actual costs or contributions, such as EI, CPP, medical, tuition and charitable gifts.
The BC pages do not list every credit under the pause. For a specific one, open the B.C. basic personal income tax credits page.
Where do the BC renter’s credit thresholds stand?
The BC renter’s tax credit is up to $400 a year, claimed on form BC479 with your return. For 2026 it starts to shrink at adjusted income of $66,189 and reaches zero at $86,189. For 2025 those figures were $64,764 and $84,764. The credit falls by 2% of income above the threshold, so the $20,000 range between the two figures removes the full $400.
The renter’s credit page says the threshold is indexed to inflation each year. It does not mention the Budget 2026 pause, and the budget wording names brackets and non-refundable credits, while this credit is refundable. We therefore cannot say whether the 2027 thresholds will move. Check the B.C. renter’s tax credit page when you file.
What could change?
A future BC budget could change the pause, and the legislation behind it is worth checking on the BC budget tax changes page. The federal indexation factor for 2027 will show how far the two governments’ thresholds drift apart. The CRA usually posts it in the fall. Our take-home pay 2027 preview keeps BC at 2026 amounts and lets you move the other provinces by a chosen percentage, so it is a scenario tool, not a forecast. The 2026 vs 2027 tax numbers page shows what else is confirmed. For how rates stack up, see marginal tax rates, the tax brackets by year and the British Columbia page. Official details are on the B.C. Provincial budget tax changes and personal income tax rates pages. A tax professional can check your own numbers.
Where does this information come from?
Rules and figures come from the British Columbia pages Personal income tax rates, B.C. basic personal income tax credits, B.C. Provincial budget tax changes and B.C. renter’s tax credit. The worked example uses 2026 rules and our own calculation with the site engine. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
What did British Columbia pause for 2027 to 2030?
BC paused indexation of its personal income tax brackets and non-refundable credit amounts, including the basic personal tax credits and the tax reduction credit, for the 2027 to 2030 tax years. The amounts stay at 2026 levels. BC pages say indexation resumes for 2031 and later years.
Will my BC income tax go up in 2027 because of the pause?
Not by itself. The rates stay the same and the 2026 brackets apply. The pause matters when your income rises, because more of it can fall into a higher bracket than if the brackets had moved. A 3% raise at $100,000 adds about $263.06 of BC tax on 2026 rules.
Does the BC pause apply to federal tax brackets?
No. The federal brackets and credits are indexed by the federal factor, set by the Canada Revenue Agency under the Income Tax Act. BC controls only the provincial part of your tax. The federal 2027 factor had not been published as of 31 October 2026.
What are the BC renter's credit income thresholds for 2026?
For 2026 the BC renter's tax credit, worth up to $400, starts to shrink at adjusted income of $66,189 and reaches zero at $86,189. For 2025 the figures were $64,764 and $84,764. The BC page says the threshold is indexed each year and does not mention the pause.
When does BC indexation start again?
BC says indexation resumes for the 2031 and subsequent tax years. For the 2027, 2028, 2029 and 2030 tax years the brackets and non-refundable credit amounts stay at their 2026 levels, unless a future budget changes the plan.