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Vancouver income tax is really BC income tax plus federal tax, because we found no city income tax. For 2026 BC’s lowest rate is 5.60% on the first $50,363 of taxable income, and it climbs to 20.50% above $265,545.
What are the BC tax brackets for 2026?
These are the provincial rates, published by the BC government on its personal income tax rates page. You pay federal tax on top, on the same income.
| Taxable income | BC rate |
|---|---|
| Up 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% |
The thresholds rose 2.2% from last year. The bigger change is the bottom rate, which was 5.06% in 2025. The same page adds that BC has paused bracket indexing for 2027 to 2030, so if prices keep climbing, more of your income will drift into the higher brackets over those years.
Why might your pay stub in 2026 look off?
Because employers used the old rate for the first half of the year. The CRA says so on its July 2026 payroll page for BC: employers withheld at a lower rate for the first six months, so from the first July payroll a prorated lowest rate of 6.14% applies. The idea is that the year averages out to the announced 5.60%.
So if you were paid all year on the same salary, the tax taken off per cheque went up in July. That isn’t an error. It’s a catch-up. Your return uses 5.60% for the whole year, so any over- or under-withholding gets sorted out at tax time.
How much income tax do you pay in Vancouver on $60,000?
We ran employment income through our income tax calculator with British Columbia selected and 2026 data.
| Employment income | Federal tax | BC tax | CPP and EI | Left over |
|---|---|---|---|---|
| $60,000 | $5,338.30 | $2,567.39 | $4,339.75 | $47,754.57 |
| $100,000 | $13,301.60 | $5,555.52 | $5,769.52 | $75,373.36 |
That’s about 13.2% of $60,000 going to income tax and 18.9% of $100,000. The same pay in Ontario gives $8,320.50 and $20,024.35 in income tax, so BC comes out lighter at both levels.
The taxable income is a little below what you earned. The calculator takes off the added CPP contributions first, which work out to about 1% of pay above $3,500. That’s why $60,000 of pay shows $59,435 taxable.
Say Mei, a dental hygienist in Kitsilano, earns $60,000. Roughly $7,906 goes to federal and BC income tax over the year, about $659 a month. Add $4,339.75 of CPP and EI, about $362 a month, and her take-home lands near $3,980 a month. That’s the number to hold up against rent.
What does the next dollar cost you?
Your average rate isn’t what a raise or a bonus is taxed at. At $60,000 a raise is taxed at close to 28 cents on the dollar, federal and BC together, and that’s the figure to use when you’re weighing overtime or a side job. The marginal tax rate calculator shows it for your own income, and the bonus tax calculator shows what’s left of a lump sum.
Above about $100,000 the BC rate jumps from 7.70% to 10.50%, then to 12.29%. Those steps come quickly, so the top of the range is where deductions pay the most.
What does the Vancouver income tax result leave out?
It’s an estimate for an employee. It doesn’t include the BC low-income tax reduction credit, benefits, or credits you might claim, and it says so on the result. BC also has a tax reduction credit for lower incomes. We couldn’t fully confirm its 2026 maximum, so it isn’t in the figures here. If your income is low, check the BC government credits page.
Self-employed people in Vancouver pay both halves of CPP, which the self-employed tax calculator adds in. And if you’re weighing a move, remember that your province is the one you lived in on December 31, not the one you worked in.
Where the numbers come from
The BC brackets and the change to the lowest rate come from the Government of British Columbia’s 2026 personal income tax rates page. The July withholding rate comes from the CRA‘s July 2026 payroll deductions table for BC. Federal brackets, CPP and EI are the 2026 figures used by our calculator, from the CRA. This is an independent information site, not connected to any government.
Frequently asked questions
Does Vancouver have its own income tax?
We found none. You pay federal tax and British Columbia tax on one return filed with the CRA.
What is the lowest BC tax rate for 2026?
It's 5.60% on taxable income up to $50,363, up from 5.06% in 2025, according to the BC government.
Why did more tax come off my pay in July 2026?
The CRA says employers used the lower rate for the first six months, so withholding uses a prorated 6.14% from the first July payroll. The idea is that the year averages 5.60%.
How much tax is that on $60,000 of employment income?
Our calculator shows $7,905.68 in federal and BC income tax, plus $4,339.75 in CPP and EI, leaving $47,754.57.
Which province do I pay if I moved during the year?
The CRA uses the province where you lived on December 31 of the tax year.
- 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