# 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

If you live in British Columbia, your sales tax doesn't work like Ontario's, and your income tax has more steps than most. Here's how the pieces fit, in the order they show up on your return and at the till.

## What are BC's income tax brackets for 2026?

BC takes 5.6% of your first $50,363 of taxable income, 7.7% up to $100,728, 10.5% up to $115,648, 12.29% up to $140,430, 14.7% up to $190,405, 16.8% up to $265,545 and 20.5% on anything above. The basic personal amount is $13,216, and credits count at 5.6% of the amount you claim.

Take $60,000. The first $50,363 costs you $2,820 and the other $9,637 costs you $742, which makes $3,562 before credits. The basic personal amount takes off $740, so you'd pay about $2,822 of BC tax. The tax reduction credit doesn't help at that income.

Or take $100,000, a ballpark figure for a decent salary in Vancouver. The first $50,363 costs $2,820 and the other $49,637 at 7.7% costs $3,822, so $6,642 before credits. Take off the $740 basic credit and you'd pay about $5,902.

Don't be thrown by the CRA's payroll tables, which show a lower first rate. They're withholding tables, so they don't match the annual return. The [limits page](https://tax-services.ca/tax-numbers) lists the federal layer.

## What's the BC tax reduction credit?

Lower incomes get a credit of up to $690 against BC tax. It shrinks by 3.56% of net income above $25,570 and is gone at about $44,952, so if you're near that range, a few hundred dollars of income changes the credit. Say your net income is $35,000. That's $9,430 over $25,570, and 3.56% of it is about $336, so the credit left is about $354.

## How do sales taxes work in BC?

You pay 5% GST and 7% PST as two separate taxes, 12% together on most goods, and you'll see both lines on your receipt. The [GST and PST calculator](https://tax-services.ca/calculators/sales-tax/gst-pst-calculator) adds both, and the [sales tax guide](https://tax-services.ca/guides/gst-hst-pst) compares the provinces.

## Which calculators switch to BC?

The [income tax calculator](https://tax-services.ca/calculators/income-tax/income-tax-calculator) and the [take-home pay calculator](https://tax-services.ca/calculators/payroll-salary/take-home-pay-calculator) both include British Columbia. Pick it from the list and the British Columbia rates apply. Easy. For a home purchase, the [property transfer tax calculator](https://tax-services.ca/calculators/property-transfer-tax/property-transfer-tax) estimates the BC tax on the transfer.

## Guides about BC

## What changed for 2026, and what is coming?

- The lowest BC rate rose from 5.06% to 5.60% on the first $50,363 of taxable income for 2026. The basic personal amount is $13,216, and the tax reduction credit maximum went up by $115 to $690. [Source](https://www2.gov.bc.ca/gov/content/taxes/tax-updates/budget-changes)
- The credit for volunteer firefighters and search and rescue volunteers doubled from $3,000 to $6,000. [Source](https://www2.gov.bc.ca/gov/content/taxes/tax-updates/budget-changes)
- Announced: BC pauses indexation of its tax brackets and non-refundable credits for 2027 to 2030, so the 2026 amounts stay in place for 2027. [Source](https://www2.gov.bc.ca/gov/content/taxes/tax-updates/budget-changes)
- Announced: The planned October 1, 2026 PST on accounting, architectural, engineering, security and some real estate services was paused on September 18, 2026. The PST stays at 7%. [Source](https://news.gov.bc.ca/releases/2026PREM0034-001089)

Checked on official pages in October 2026. Items marked announced or proposed are not final, so confirm them with the province before you plan around them.

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Source: https://tax-services.ca/provinces/british-columbia
Last updated: 2026-10-08
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