Updated Checked by the Tax-Services.ca editorial team How we check
British Columbia has seven income tax brackets, from 5.6% to 20.5%, and a basic personal amount of $13,216. Sales tax is the 5% GST plus a 7% PST, and a tax reduction credit of up to $690 helps lower incomes.
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 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 adds both, and the sales tax guide compares the provinces.
Which calculators switch to BC?
The income tax calculator and the 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 estimates the BC tax on the transfer.
Guides about BC
- BC PST and GST: Rates, Exemptions and Examples
BC adds 7% PST to 5% GST on most goods, but food, children's clothing and books are exempt from PST. See a $1,500 example and the limits
- Is There a BC Food Tax? What Gets GST and PST
Basic groceries carry no BC PST or GST. See which foods get 5% GST, which drinks pay 7% PST and what an $80 restaurant meal adds up to
- Common questions on $90,000 after tax in BC
Answers on a $90,000 salary in British Columbia: $68,193 net a year, $5,683 a month, and how that compares with Ontario and Alberta.
- $60,000 salary in BC: employer cost against what you keep
A $60,000 job in BC costs an employer $64,731 in 2026 while the worker keeps $47,755. See the payroll costs line by line.
- CRA in Vancouver: Where to Go and What Works
The CRA has no walk-in counter in Vancouver. See how to reach the agency by phone, mail or online, and what a BC return costs you at $75,000
- BC Carbon Tax Rebate: Is Any Payment Still Coming?
The BC carbon tax rebate ended with the tax itself in April 2025. See what still applies to late filers and the tax you pay on $50,000
- Sales tax in Vancouver: 12% and what it covers
Buying in Vancouver? Sales tax is 12% on most items: 5% GST plus 7% PST. See a $2,500 example and which items are taxed differently
- How BC Income Tax Is Worked Out on Your Return
Lowest BC rate is 5.60% for 2026. See all seven rates, the tax reduction credit and how $60,000 of taxable income is taxed step by step
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
- The credit for volunteer firefighters and search and rescue volunteers doubled from $3,000 to $6,000. Source
- 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
- 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
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.
Frequently asked questions
What is the lowest tax rate in BC for 2026?
5.6% on the first $50,363 of taxable income. The CRA payroll tables show a lower first rate because they are withholding tables. The annual return uses 5.6%.
What is the BC tax reduction credit?
A credit of up to $690 for lower incomes. It shrinks by 3.56% of net income above $25,570 and reaches zero at about $44,952.
What is BC PST?
A 7% provincial sales tax charged on top of the 5% GST. It is a separate tax from the GST and is not blended into one rate.
Where do these numbers come from?
From the British Columbia government tax pages and the CRA payroll tables, checked on September 29, 2026.