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British Columbia Tax Brackets and Income Tax Rates

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.

British Columbia’s Tax Brackets for Tax Year 2020

Once your taxable income is determined, which equals all sources of income minus applicable deductions, reductions, and credits, 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 $41,725  $41,725
7.7%  on the next $41,726  over $41,725 up to $83,451
10.5%  on the next $12,361  over $83,451 up to $95,812
12.29%  on the next $20,532  over $95,812 up to $116,344
14.7%  on the next $41,404  over $116,344 up to $157,748
16.80%  on the next $62,252  over $157,748 up to $220,000
20.5%  on the portion over $220,000  over $220,000

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 credits and 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 totaled on Line 15000 – Total Income, then subtracting applicable credits and deductions. The result of this calculation, shown on Line 26000 – Taxable Income, is used to determine your tax brackets.

The Structure of Tax Brackets British Columbia – How It Works

The tax bracket structure in British Columbia is progressive. That means, the higher your income, the higher your tax rate. Progressive structures are also known as marginal tax rates.

There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal Basic Personal Amount (BPA) is $13,229, while the BC amount is $10,949. 

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 Tax Credits

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.

Affordable, Professional Tax Help

TurboTax is the software of choice for personal taxes, small businesses, and entrepreneurs. It’s the fast, easy, affordable, accurate way to do your taxes. Answer a few simple questions on our product recommender and we can help guide you to the right edition that will reflect your individual circumstances.

You can always start your return in TurboTax Free, and if you feel the need for additional assistance, you can upgrade to any of our paid editions or get Live help from an expert with our Assist & Review or Full Service. But don’t worry, while using the online version of the software when you choose to upgrade, your information is instantly carried over so you can pick up right where you left off.

Provincial tax brackets

Looking for an income tax calculator for your province or territory?

Alberta Tax Brackets Alberta tax calculator
British Columbia Tax Brackets British Columbia tax calculator
Manitoba Tax Brackets Manitoba tax calculator
Newfoundland and Labrador Tax Brackets Newfoundland and Labrador tax calculator
New Brunswick Tax Brackets New Brunswick tax calculator
Northwest Territories Tax Brackets Northwest Territories tax calculator
Nova Scotia Tax Brackets Nova Scotia tax calculator
Nunavut Tax Brackets Nunavut tax calculator
Ontario Tax Brackets Ontario tax calculator
Prince Edward Island Tax Brackets Prince Edward Island tax calculator
Québec Tax Brackets Quebec tax calculator
Saskatchewan Tax Brackets Saskatchewan tax calculator
Yukon Tax Brackets Yukon tax calculator