BC Income Tax 2026: Brackets, Credits, and How It Compares

British Columbia has some of the lowest income tax in Canada for 2026, even after raising its lowest rate. It’s lower than Ontario and Quebec at most income levels, and at most incomes from about $25,000 to $148,000 it’s even a little lower than Alberta. What makes BC unusual is the number of brackets — seven provincial brackets create a very gradual tax progression that keeps rates relatively low until you hit six figures.

Here is how BC income tax works for the 2026 tax year (the return you file in spring 2027) and where you actually land compared to other provinces.

BC’s 7 Provincial Tax Brackets

Only Newfoundland and Labrador has more tax brackets than BC. The graduated structure means your rate increases slowly as your income rises, which benefits middle-income earners more than a system with fewer, wider brackets.

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 big change for 2026 is the starting rate. BC’s Budget 2026 raised it from 5.06% to 5.60%. To soften the increase, BC also raised the rate used for its basic non-refundable credits (including the basic personal amount) to 5.60% and increased the BC tax reduction, which together fully or partially offset the higher rate depending on your income. Payroll deductions only switched to the new rate on July 1, 2026, so your 2026 refund or balance owing may look a little different from last year’s.

Even at 5.60%, BC’s starting rate is one of the lowest in Canada. Among the provinces, only Ontario’s 5.05% is lower; Alberta (8%) and Saskatchewan (10.5%) start higher but make up for it with much larger basic personal amounts. On income under about $50,000, BC takes just over five and a half cents on every dollar. Ontario’s first bracket rate is slightly lower, but Ontario layers on the health premium and surtax at higher levels that BC does not.

Budget 2026 also proposed freezing BC’s brackets and non-refundable credit amounts at their 2026 levels for the 2027 to 2030 tax years, so don’t expect the thresholds above to rise with inflation for a while.

Calculate your BC tax —>

Basic Personal Amount

BC’s basic personal amount for 2026 is $13,216. That is the income threshold below which you owe zero provincial tax.

For context:

Alberta BPA: $22,769
Quebec BPA: $18,952
Federal BPA: $16,452
Ontario BPA: $12,989
BC BPA: $13,216

BC and Ontario are nearly identical here, and both are well below Alberta and the federal amount. If you earn $15,000 in BC, about $1,800 of that is above the basic personal amount, although the BC tax reduction cancels the provincial tax at that income. For 2026 the reduction is worth up to $690 (up from $562 in 2025); you get the full amount if your net income is $25,570 or less, and it phases out completely at about $44,950. In Alberta, you would owe nothing provincially on that same $15,000 because of the much larger basic personal amount.

No Health Premium

Unlike Ontario, BC does not charge a separate health premium on your tax return. Ontario’s health premium adds up to $900 to your annual tax bill on taxable incomes above $20,000. BC eliminated its Medical Services Plan (MSP) premiums entirely in 2020, so there is no equivalent charge. Health care is funded through general tax revenue.

This is a genuine advantage over Ontario, especially in the $50,000 to $100,000 income range where the Ontario Health Premium adds a few hundred dollars on top of the already-comparable income tax rates.

BC Climate Action Tax Credit (Ended in 2025)

BC used to pay a refundable Climate Action Tax Credit quarterly to low and moderate-income residents. It was designed to offset the carbon tax on fuel and heating costs, and it ended when BC eliminated its consumer carbon tax: the April 2025 payment was the final one, so there are no climate action payments for 2026.

For its last benefit year (July 2024 to June 2025), the maximum amounts were:

Adults: $504 per year
Spouse or common-law partner (or the first child in a single-parent family): $252 per year
Other children: $126 per year per child

A family of four with two children could receive up to $1,008 for that year. The credit phased out as family net income increased, and it was calculated from your tax return and paid automatically through the CRA along with the federal GST/HST credit.

See your BC after-tax income —>

How BC Compares to Alberta and Ontario

Here is the total income tax (federal plus provincial, including Ontario’s health premium) at common salary levels for 2026, for a single employee with no deductions, as our calculator computes it:

At $75,000:

BC: $11,920
Alberta: $12,269
Ontario: $12,705

At $100,000:

BC: $18,857
Alberta: $19,772
Ontario: $20,024

At $75,000, BC is $349 less than Alberta and $785 less than Ontario. At $100,000, the pattern holds — BC comes out lowest, $915 less than Alberta and $1,167 less than Ontario. The higher 5.60% starting rate narrowed BC’s lead over Alberta a little compared with 2025, but didn’t erase it. The difference between BC and Alberta is noticeable but not dramatic at these income levels. The difference between BC and Ontario is more significant, largely because of Ontario’s health premium and surtax structure.

At very high incomes, the picture shifts. BC’s top combined marginal rate (federal 33% plus BC 20.5%) reaches approximately 53.5% on income over $265,545. That is essentially the same as Ontario’s top combined rate of about 53.53%. So at the top end, BC and Ontario converge, and both are well above Alberta’s top combined rate of 48%.

PST Is Separate from Income Tax

BC charges a 7% Provincial Sales Tax on most goods, on top of the 5% federal GST. That is 12% total at the cash register compared to Alberta’s 5% GST-only or Ontario’s 13% HST.

While PST is not an income tax topic, it affects your overall cost of living and your effective tax burden. BC’s PST does not apply to most services, groceries, or children’s clothing, but it adds up on vehicles, electronics, furniture, and other purchases. Something to factor in if you are comparing total tax load between provinces rather than just income tax.

CPP, EI, and Filing

BC uses the same Canada Pension Plan and Employment Insurance as every province except Quebec. For 2026, the CPP employee rate is 5.95% on pensionable earnings between $3,500 and $74,600, plus CPP2 at 4% on earnings between $74,600 and $85,000. EI is 1.63% on insurable earnings up to $68,900. These are identical to what workers in Alberta, Ontario, and other non-Quebec provinces pay.

Filing is straightforward. You submit one tax return to the CRA, and your BC provincial tax is calculated on the same return. No separate provincial filing, no separate agency. The CRA handles everything.

The filing deadline for the 2026 tax year is April 30, 2027 (June 15, 2027 for self-employed individuals, but any balance owing is still due April 30, 2027).

A Quick Note on BC Real Estate Taxes

BC has several tax measures related to property that sometimes get confused with income tax. The principal residence exemption still applies — selling your primary home is tax-free. But BC layers on additional property-related taxes including the Property Transfer Tax on home purchases and the Speculation and Vacancy Tax in certain urban areas.

These are not income taxes and do not appear on your income tax return. But they are part of BC’s broader tax picture, and worth understanding if you own property or plan to buy in the province.

Run your full BC tax calculation —>

For a side-by-side look at how your income would be taxed in every province, use the income tax calculator and compare the results.