Tax · British Columbia
British Columbia income tax.
Estimate your 2026 British Columbia and federal income tax, net income, effective rate and marginal rate.
A British Columbia income tax calculator for the 2026 tax year. Enter your gross income and it returns federal tax, BC tax, net income, and your effective and marginal rate.
BC uses seven provincial brackets — more than any other large province — and a tax reduction credit worth up to $690 that eliminates provincial tax at low incomes and then claws back at 3.56%.
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Your British Columbia tax
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British Columbia’s 2026 tax brackets
BC runs seven provincial brackets — more than any other large province, where Ontario has five, Alberta six and Quebec four. The result is an unusually gentle climb through middle incomes and a steep one after $140,000.
| Taxable income | Rate |
|---|---|
| $0 – $50,363 | 5.6% |
| $50,363 – $100,728 | 7.7% |
| $100,728 – $115,648 | 10.5% |
| $115,648 – $140,430 | 12.29% |
| $140,430 – $190,405 | 14.7% |
| $190,405 – $265,545 | 16.8% |
| Over $265,545 | 20.5% |
BC’s basic personal amount for 2026 is $13,216. Its top rate of 20.5% is high, but unlike Ontario’s it is not multiplied by a surtax, so 20.5% is genuinely what a top-bracket British Columbian pays provincially. Ontario’s nominal 13.16% works out to 20.53% once its surtax is applied — the two provinces end up in almost the same place by opposite routes.
The BC tax reduction credit
British Columbia has a non-refundable tax reduction credit that removes provincial income tax entirely at the bottom of the scale. For 2026 it is worth up to $690, given in full up to $25,570 of net income and then clawed back at 3.56 cents per dollar until it disappears at about $44,952.
Two consequences worth knowing. A British Columbian earning under roughly $25,000 pays no provincial income tax at all. And between $25,570 and $44,952 the clawback adds 3.56 points to the effective marginal rate, so the real marginal rate over that band is closer to 9.2% than to the 5.6% on the bracket table. It is applied by CRA as factor S in the withholding formula, so it shows up in your paycheque, not just at filing.
The employer health tax is not your deduction
BC introduced the employer health tax on 1 January 2019 and eliminated individual Medical Services Plan premiums on 1 January 2020. The replacement is a payroll levy on the employer, assessed on the business’s BC remuneration, and nothing about it comes off an employee’s cheque.
This is a genuine contrast with Ontario, whose Health Premium is charged to the individual through the income tax system. If you have moved from Ontario to BC and noticed a health charge vanish from your pay, that is why. If you are an employer, the levy did not vanish — it moved onto your side of the ledger.
Federal tax is the same everywhere
Only the provincial half of the bill changes with your address. The 2026 federal brackets below apply identically in every province and territory, and the federal basic personal amount is $16,452, clawed back on a straight line to $14,829 between $181,440 and $258,482 of net income.
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
Sources
Every rate, threshold and ceiling on this page is taken from the official publication linked below. Last verified 2 September 2026.
- 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
- 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.
- CRA — Federal income tax rates and brackets
- CRA T4127 — federal basic personal amount and its phase-out — $16,452 falling to $14,829 between $181,440 and $258,482
Frequently asked questions
What are the BC tax brackets for 2026?
British Columbia has seven provincial brackets in 2026, from 5.6% on the first $50,363 of taxable income to 20.5% on income over $265,545, with a basic personal amount of $13,216.
BC uses more brackets than any other large province, which is why its provincial tax rises more gradually through middle incomes than Ontario’s or Quebec’s.
What is the BC tax reduction credit?
It is a non-refundable credit worth up to $690 for 2026 that eliminates BC provincial income tax for low incomes. It is given in full up to $25,570 of net income, then clawed back at 3.56% and fully gone at about $44,952.
The clawback matters: over that income band it adds roughly 3.6 points to your effective marginal rate, so the rate on your next dollar is higher than the bracket table suggests.
Do I pay MSP premiums in BC?
No. MSP premiums for individuals were eliminated on 1 January 2020, and the employer health tax that replaced them took effect on 1 January 2019. It is paid by employers on their BC remuneration.
Unlike the Ontario Health Premium, nothing equivalent is charged to individuals through the BC income tax system.
How does BC compare with Ontario and Alberta on take-home pay?
On a $85,000 salary and this page’s assumptions, a BC employee keeps about $64,600 a year against roughly $64,000 in Alberta and $63,700 in Ontario. On $120,000 the figures are about $89,100, $88,300 and $87,300.
BC comes out ahead of Ontario at these incomes because it charges no surtax and no health premium, and ahead of Alberta because its lower brackets are gentler. Above roughly $150,000 Alberta pulls ahead of both.
Disclaimer
Estimate only — not tax advice. Figures use 2026 federal and British Columbia brackets and the basic personal amount, and exclude every other credit and deduction, including provincial low-income reductions and the credits for CPP and EI. Your filed return will differ. Confirm anything that matters with the CRA or a professional adviser.