What are BC's tax brackets for 2026, and what changed from 2025?
For 2026, BC taxes income at 5.6% up to $50,363, 7.7% to $100,728, 10.5% to $115,648, 12.29% to $140,430, 14.7% to $190,405, 16.8% to $265,545 and 20.5% above. The lowest rate rose from 5.06% in 2025. With the 33% federal rate, the combined top marginal rate is 53.5% on income over $265,545.
What are the 2026 BC brackets next to 2025?
BC has seven brackets for 2026. Every threshold rose by 2.2%, the BC Consumer Price Index, and only the lowest rate changed: it went from 5.06% to 5.6% www2.gov.bc.ca.
| Rate | 2026 taxable income | 2025 taxable income |
|---|---|---|
| Lowest (5.6% for 2026, 5.06% for 2025) | $0 to $50,363 | $0 to $49,279 |
| 7.7% | $50,363.01 to $100,728 | $49,279.01 to $98,560 |
| 10.5% | $100,728.01 to $115,648 | $98,560.01 to $113,158 |
| 12.29% | $115,648.01 to $140,430 | $113,158.01 to $137,407 |
| 14.7% | $140,430.01 to $190,405 | $137,407.01 to $186,306 |
| 16.8% | $190,405.01 to $265,545 | $186,306.01 to $259,829 |
| 20.5% | Over $265,545 | Over $259,829 |
The CRA's 2026 table shows the same seven BC brackets and the 5.6% bottom rate, and the province of residence on December 31, 2026 decides which table your client uses canada.ca. BC Budget 2026, tabled February 17, 2026, made the increase for 2026 and later years, and the same percentage now sets the value of the basic BC credits
www2.gov.bc.ca.
What is the combined federal and BC marginal rate at each income level?
Stack the five federal brackets (14%, 20.5%, 26%, 29%, 33%) on the seven BC brackets and you get eleven bands of ordinary income canada.ca. These are the rates on employment, business and interest income, not on dividends or capital gains.
| 2026 taxable income | Federal | BC | Combined |
|---|---|---|---|
| $0 to $50,363 | 14% | 5.6% | 19.6% |
| $50,363 to $58,523 | 14% | 7.7% | 21.7% |
| $58,523 to $100,728 | 20.5% | 7.7% | 28.2% |
| $100,728 to $115,648 | 20.5% | 10.5% | 31% |
| $115,648 to $117,045 | 20.5% | 12.29% | 32.79% |
| $117,045 to $140,430 | 26% | 12.29% | 38.29% |
| $140,430 to $181,440 | 26% | 14.7% | 40.7% |
| $181,440 to $190,405 | 29% | 14.7% | 43.7% |
| $190,405 to $258,482 | 29% | 16.8% | 45.8% |
| $258,482 to $265,545 | 33% | 16.8% | 49.8% |
| Over $265,545 | 33% | 20.5% | 53.5% |
Two credits that shrink with income push the real rate above the table. From $25,570 to $44,952 of net income, the BC tax reduction phases out at 3.56%, so the effective rate there is 23.16%, not 19.6%. From $181,440 to $258,482, the federal basic personal amount shrinks, adding roughly 0.3 points. For the federal brackets alone, see federal tax brackets for 2026.
How much BC tax does a client with $120,000 of taxable income pay?
Your client lives in BC on December 31, 2026, has $120,000 of taxable income and claims only the BC basic personal amount. Each rate applies to the slice of income inside its bracket.
| Slice | Arithmetic | BC tax |
|---|---|---|
| First $50,363 | $50,363 times 5.6% | $2,820.33 |
| $50,363 to $100,728 | $50,365 times 7.7% | $3,878.11 |
| $100,728 to $115,648 | $14,920 times 10.5% | $1,566.60 |
| $115,648 to $120,000 | $4,352 times 12.29% | $534.86 |
| Tax before credits | Sum of the slices | $8,799.90 |
| Basic personal credit | $13,216 times 5.6% | minus $740.10 |
| BC tax | $8,059.80 |
The $13,216 basic personal amount is BC's 2026 figure, up from $12,932, and the credit uses the lowest rate in effect for the year www2.gov.bc.ca. Your client is far above the $44,952 ceiling, so the BC tax reduction is zero.
What the rate change costs: on the 2026 brackets, moving the bottom rate from 5.06% to 5.6% adds $271.96 of tax on the first $50,363 ($50,363 times 0.54%) and adds $71.37 to the basic personal credit ($13,216 times 0.54%). The net increase tops out at $200.59 for anyone with taxable income of $50,363 or more who claims only the basic amount. Other credits, such as the age or spouse amounts, also gain at the higher rate.
Why did BC withholding jump in July 2026?
Payroll kept using 5.06% until the July 2026 formulas, so the first six months were underwithheld. To catch up, the CRA's July edition of T4127 applies a prorated lowest rate of 6.14% to the first bracket for the rest of the year, starting with the first July payroll canada.ca. The BC Budget 2026 page says the increase reaches pay cheques after July 1, 2026
www2.gov.bc.ca.
The BC tax reduction in payroll gets the same treatment: $575 was used for January to June, so a prorated $805 applies from July to December, phasing out at 3.56% between $25,570 and $44,952 canada.ca. The 6.14% and $805 are payroll figures only. The 2026 return uses 5.6% and $690 for the whole year.
Who gets the BC tax reduction for 2026, and how much?
The BC tax reduction credit is $690 for 2026, up $115 from the indexed $575 www2.gov.bc.ca. Your client gets the full $690 with net income of $25,570 or less. Above that it drops by 3.56% of the excess and reaches zero at $44,952
www2.gov.bc.ca.
Example: net income of $35,000 is $9,430 over the threshold. $9,430 times 3.56% is $335.71, so the reduction is $690 minus $335.71, or $354.29. It can only reduce BC tax to zero; it does not create a refund.
Will the BC brackets move in 2027?
No. BC Budget 2026 pauses indexation of the brackets and the basic credits at their 2026 levels for the 2027 to 2030 tax years, and indexation resumes for 2031 www2.gov.bc.ca. The thresholds above stay in place for four more years while the federal brackets keep rising with inflation, so each year more of your client's income reaches the higher BC rates. For other provinces, see Alberta's 2026 brackets and Ontario's 2026 brackets.
Sources
My client moved to BC in August 2026. Which brackets apply?
BC's, for the whole year. The CRA applies the rates of the province or territory where your client lived on December 31, 2026 canada.ca. Moving out of BC before that date means none of the BC table applies.
What rate do BC non refundable credits use for 2026?
5.6%. Each basic BC credit is the amount times the lowest rate in effect for the year, so the $13,216 basic personal amount is worth $740.10, against $654.36 for 2025 ($12,932 times 5.06%) www2.gov.bc.ca.
Does the 5.6% rate apply to all of 2026 or only from July?
All of 2026. The increase applies for the 2026 and later tax years on the return; July 1 is only when payroll withholding caught up www2.gov.bc.ca. Employees can still owe a little at filing if the 6.14% payroll rate didn't fully make up the first half.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.