Payroll · British Columbia
British Columbia take-home pay.
What lands in your account after British Columbia and federal tax, CPP and EI — using CRA’s own payroll formulas.
A British Columbia paycheque calculator for 2026, following CRA’s T4127 Payroll Deductions Formulas. Enter your gross pay and frequency and it itemises every statutory deduction.
BC applies the BC tax reduction at source, worth up to $690 off provincial tax. It charges employees nothing for health: MSP premiums ended in 2020 and the employer health tax that replaced them is paid by the employer.
Inputs
Your British Columbia paycheque
Fill the form and press Calculate.
What comes off a BC paycheque
- Federal income tax — 2026 brackets, basic personal amount of $16,452 phasing down to $14,829, plus the Canada Employment Amount of $1,501.
- BC income tax — seven brackets from 5.6% to 20.5%, basic personal amount $13,216.
- The BC tax reduction — CRA’s factor S, up to $690 off provincial tax, applied at source so lower-paid employees see it in every cheque rather than at filing.
- CPP and EI — 5.95% plus CPP2 at 4%, and 1.63% respectively.
- Nothing for health — no MSP premium, no health premium. BC funds that through the employer health tax, which never touches an employee’s pay.
A BC employee therefore has one of the shortest statutory deduction lists in Canada: two income taxes, CPP and EI, and no province-specific levy of their own.
CPP and EI in 2026
- CPP: 5.95% of pensionable earnings between the $3,500 basic exemption and the $74,600 first ceiling — a maximum employee contribution of $4,230.45.
- CPP2: a further 4% on earnings between $74,600 and the second ceiling of $85,000, a maximum of $416.00.
- EI: 1.63% of insurable earnings up to $68,900, a maximum employee premium of $1,123.07.
Only 4.95 of the 5.95 CPP points earn a tax credit. The remaining 1% and all of CPP2 are deducted from taxable income instead, which is why the tax saving from CPP is larger than a flat credit calculation suggests.
How this is calculated
The numbers follow CRA’s T4127 Payroll Deductions Formulas, including factor S for the BC tax reduction. It assumes a full year at a constant salary and TD1 claim code 1 — the basic personal amount and nothing else.
Not modelled: other TD1 credits, registered pension contributions, union dues, and anything your employer deducts by agreement.
Sources
Every rate, threshold and ceiling on this page is taken from the official publication linked below. Last verified 2 September 2026.
- CRA T4127 — Payroll Deductions Formulas — the governing source for every withholding figure on this page. Two 2026 editions exist: the 122nd, effective 1 January 2026, and the 123rd, effective 1 July 2026 and currently in force. This page uses full-year annual rates, not the prorated mid-year catch-up rates the 123rd edition publishes for July–December withholding.
- Government of Canada — CPP contribution rates, maximums and exemptions — 5.95% to $74,600, CPP2 at 4% to $85,000
- CRA — EI premium rates and maximum insurable earnings — 1.63% to $68,900 outside Quebec, 1.30% in Quebec
- Government of British Columbia — Personal income tax rates — the 5.6% first-bracket rate applies to the whole of 2026
- Government of British Columbia — BC tax reduction credit
- Government of British Columbia — Budget 2026 tax changes — raised the maximum tax reduction credit by $115 to $690
Frequently asked questions
Is MSP deducted from my BC paycheque?
No. MSP premiums for individuals ended on 1 January 2020. BC funds that through the employer health tax, in force since 1 January 2019 as a levy on the employer’s BC remuneration, which does not appear on an employee’s pay stub.
If a BC pay stub shows a health deduction, it is a private benefits plan set up by the employer, not a government premium.
How much is CPP and EI on a BC paycheque in 2026?
CPP is 5.95% of earnings between $3,500 and $74,600, capped at $4,230.45, plus CPP2 at 4% on earnings from $74,600 to $85,000, capped at $416.00. EI is 1.63% up to $68,900 of insurable earnings, capped at $1,123.07.
These are federal figures and are identical in BC to every province outside Quebec.
Does the BC tax reduction show up in my paycheque?
Yes. CRA’s T4127 formula applies it as factor S during the year, so a BC employee earning under about $45,000 has less provincial tax withheld from every cheque rather than waiting for a refund.
It is worth up to $690 in 2026 and phases out between $25,570 and roughly $44,952 of net income.
Why does my take-home pay change partway through the year in BC?
CPP and EI stop once the annual ceilings are reached. A BC employee on $120,000 finishes their EI premiums around September and their CPP2 contributions shortly after, and every cheque from then on is larger.
Income tax withholding continues, so the change is limited to the CPP and EI lines.
Disclaimer
Estimate only — not tax or payroll advice. Follows CRA’s T4127 Payroll Deductions Formulas for a full year at a constant salary on TD1 claim code 1. Your real cheque depends on your TD1 claims, pension and union deductions, taxable benefits and mid-year changes. Confirm anything that matters with the CRA or a payroll professional.