Did you know that British Columbia is one of the top 3 producing regions of cranberries and blueberries in the world? Snack on some berries while you learn more about the personal income tax rates in beautiful BC!
British Columbia has a tax system similar to other Canadian provinces. Many of the British Columbia provincial taxes and credits compliment similar credits at the federal level, but there are some unique credits for residents of British Columbia.
British Columbia uses a progressive income tax structure, with seven tax rates. The tax brackets increase each year, based on inflation. Visit the government of British Columbia’s personal income taxes page for yearly tax bracket rates.
- Tax brackets in British Columbia are determined by income.
- British Columbia uses a progressive income tax structure, with seven tax rates. The tax brackets increase each year, based on inflation.
- For the 2023 tax year, the maximum federal basic personal amount (BPA) is $15,000, while the BC amount is $11,981.
B.C. provincial income tax brackets for Tax Year 2023
Once your taxable income is determined, which equals all sources of income minus applicable deductions, you can find where you are in the tax brackets of British Columbia.
Tax Rate | Tax Bracket | Taxable Annual Income |
5.06% | on the first $45,654 | $45,654 |
7.7% | on the next $45,656 | over $45,654 up to $91,310 |
10.5% | on the next $13,525 | over $91,310 up to $104,835 |
12.29% | on the next $22,464 | over $104,835 up to $127,299 |
14.7% | on the next $45,303 | over $127,299 up to $172,602 |
16.80% | on the next $68,114 | over $172,602 up to $240,716 |
20.5% | on the portion over $240,716 | $240,716 and up |
For 2022 tax rates, review this link from the Canadian government.
What is a tax bracket?
Tax brackets in British Columbia are determined by income. Income is found by adding up all your applicable sources of income and then subtracting your deductions. Let’s take a closer look at how income tax works in British Columbia and how to determine your tax rates in BC.
Income for determining your tax bracket is calculated by adding the sum of all income streams for the year, such as employment, self-employment, pension, saving plans, investments, benefits, and more reported on Line 15000 – Total Income, then subtracting applicable deductions. The result of this calculation, shown on Line 26000 – Taxable Income, is used to determine your tax brackets.
How British Columbia’s tax structure works
The tax bracket structure in British Columbia is progressive. That means that the higher your income, the higher your tax rate. Progressive structures are also known as marginal tax rates.
There’s an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “BPA.” For the 2023 tax year, the maximum federal basic personal amount (BPA) is $15,000 while the BC amount is $11,981.
This TurboTax article provides more information on the federal tax rates, as well as links to other provinces, and tax calculators: an overview of Canada’s tax brackets.
British Columbia’s provincial tax credits
A complete list of non-refundable tax credits and other credits or deductions for BC residents can be found in this CRA link: British Columbia tax and credits.
- Farmers’ food donation tax credit: This credit was implemented to encourage farmers to donate certain foods they produce in British Columbia to registered charities like school meal programs or food banks.
- BC climate action tax credit: This tax credit helps offset the impact of carbon taxes for low-income individuals and families and is issued with your GST/HST tax credit. More information on eligibility and applying for this credit can be found in this TurboTax link: BC climate action tax credit (carbon tax).
What does the government do with income taxes?
Wondering where those taxes you pay go?
Taxes are part of a large system that supports all citizens at the provincial and national levels. Universal health care is one of the ways your tax dollars work, but they also pay for beneficial things like national defence, infrastructure projects, education, and employment insurance.