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Most people in British Columbia meet three provincial taxes: income tax, a 7% PST when they shop, and property transfer tax when they buy a home. On $60,000 of taxable income, BC income tax is $2,822.28. A $900,000 home purchase carries $16,000 of transfer tax. This page covers all three and shows where each bill comes from.
Which taxes do you pay in BC?
Every resident pays federal tax and BC tax on the same return. On top of that come sales taxes, GST of 5% and PST of 7%, and taxes on property deals. We’re not covering municipal property tax, employer taxes or fuel taxes here, because we haven’t confirmed current rates for them.
| Tax | Who pays | Rate |
|---|---|---|
| BC income tax | Everyone with taxable income | 5.60% to 20.50% in bands |
| GST | Buyers of most goods and services | 5% |
| PST | Buyers of most goods and services | Generally 7% |
| Property transfer tax | Home buyers | 1%, 2%, 3% in bands, plus 2% on residential value over $3,000,000 |
How much is BC income tax?
The province’s bands start at 5.60% on the first $50,363 of taxable income and rise to 20.50% above $265,545. After the basic personal credit, a person with $60,000 of taxable income pays $2,822.28 to BC and $6,192.73 to Ottawa, so $9,015.01 in all. That’s 15.0% of income.
Low earners get help. BC’s tax reduction credit reaches $690 for 2026 and fades out by a net income of $44,952. We wrote a separate guide on how BC income tax is worked out, so we’ll leave the full band table there. To try your own figures, use the income tax calculator.
What does PST and GST add to a purchase?
Add both and a typical BC purchase carries 12%. So a $1,000 item costs $1,120, with $50 of GST and $70 of PST. But PST has exceptions, and the BC page only says the rate is generally 7%. Some goods and services aren’t taxed at all, and we couldn’t confirm the full list.
The GST and PST calculator is handy for the standard case, though it appears to apply both taxes to everything, so it can overstate the tax on items PST doesn’t cover. Restaurant food is one example. If you’re pulling a price back out of a receipt, work from the sticker and check the receipt lines.
How is property transfer tax calculated?
You pay it once, when the title moves to you. It’s on top of your down payment. The base is fair market value. BC charges 1% on the first $200,000, 2% from there to $2,000,000, and 3% above that. Residential value over $3,000,000 gets a further 2%.
| Purchase price | Transfer tax |
|---|---|
| $900,000 | $16,000 |
| $1,500,000 | $28,000 |
| $3,500,000 | $93,000 |
Those figures assume a residential purchase with no exemption. First-time buyers get the full tax back at $500,000 or less, a flat $8,000 between $500,000 and $835,000, and a shrinking amount up to $860,000, for transfers registered on or after 1 April 2024. Check the exemptions page before you plan around it. Non-residents also pay an extra tax in certain areas.
Budget for the rest of your closing costs too. The property transfer tax calculator and the closing costs calculator put the numbers side by side.
Where people slip up
Forgetting that GST and PST are separate is the classic one, and it bites hardest on small businesses that register for one tax and assume the other came along with it. Businesses register for PST on their own, apart from GST. We couldn’t confirm the dollar threshold for that, so ask the BC government if you sell in the province.
Another is treating your pay stub as final. Payroll tables changed during 2026, so your final tax comes from the return. See what actually lands in your account with the take-home pay calculator.
And don’t budget for 2027 rates yet.
Where do these figures come from?
Income tax rates and credits come from the Government of British Columbia’s 2026 tax pages. PST and property transfer tax come from the BC government’s PST and property transfer tax pages, and the GST rate from the CRA. We rechecked them in September 2026. This site is independent of every government body.
Frequently asked questions
What is the PST rate in BC?
Generally 7%, with some exceptions, according to the BC government's PST page. GST of 5% is charged separately.
How much is BC property transfer tax on $900,000?
$16,000 on the rates 1% to $200,000, 2% to $2,000,000 and 3% above, before any exemption.
Is there an extra tax on expensive homes?
Yes. A further 2% applies to the residential part of value over $3,000,000.
What is the lowest BC income tax rate in 2026?
5.60% on the first $50,363 of taxable income, per the BC government's rate page.
Can first-time buyers skip property transfer tax?
Exemptions exist. We couldn't confirm the current limits from the page we read, so check the exemptions page.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
- British Columbia income tax and PST in 2026
How British Columbia income tax works in 2026: seven brackets starting at 5.6%, the tax reduction credit, the 7% PST and the BC calculators
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.