BC Tax Brackets 2026: Rates From 5.6% to 20.5%
Loading article…
BC tax brackets for 2026 run from 5.6% to 20.5% across seven slices of taxable income, as of October 20, 2026. British Columbia raised its lowest rate in Budget 2026 and indexed its thresholds by 2.2%, so last year's figures no longer apply. This guide sets out the provincial and federal brackets, the basic personal amounts, and the combined marginal rates a BC resident pays. For more tax guides, see our taxes hub.
Provincial figures come from the Government of British Columbia's personal income tax rates page, and federal figures from the Canada Revenue Agency (CRA). Each rate applies only to the portion of income inside its bracket, never to your whole income.
BC tax brackets for 2026
British Columbia applies seven provincial rates in 2026. The province increased each bracket threshold by 2.2%, the BC Consumer Price Index adjustment for the year. The table below shows each slice of taxable income and the rate that applies to it.
| Taxable income | BC rate |
|---|---|
| $0 to $50,363 | 5.6% |
| $50,363.01 to $100,728 | 7.7% |
| $100,728.01 to $115,648 | 10.5% |
| $115,648.01 to $140,430 | 12.29% |
| $140,430.01 to $190,405 | 14.7% |
| $190,405.01 to $265,545 | 16.8% |
| Over $265,545 | 20.5% |
The lowest rate is the change to watch. It rose to 5.6% for 2026, up from 5.06% in 2025, so the first $50,363 of taxable income now costs slightly more in provincial tax. The other six rates did not change.
BC basic personal amount for 2026
The BC basic personal amount is $13,216 for 2026, up from $12,932 in 2025. BC converts its basic credits at its lowest tax rate, so the credit is now calculated at 5.6%. That makes the basic personal amount worth about $740 off your provincial tax.
Lower-income residents may also get the BC tax reduction credit. For 2026, it is worth up to $690 and shrinks by 3.56% of net income above $25,570, reaching zero at $44,952. In that income range, the phase-out adds 3.56 points to your marginal rate.
Federal tax brackets for 2026
Federal tax applies on top of BC tax. For 2026, the CRA lists five federal rates, shown in the table below. The lowest rate is 14% for the full year, after the federal government cut it from 15% on July 1, 2025.
The federal basic personal amount is $16,452 for 2026 when your net income is $181,440 or less. It shrinks gradually above that level and bottoms out at $14,829 once net income reaches $258,482.
| Taxable income | Federal rate |
|---|---|
| $0 to $58,523 | 14% |
| $58,523.01 to $117,045 | 20.5% |
| $117,045.01 to $181,440 | 26% |
| $181,440.01 to $258,482 | 29% |
| Over $258,482 | 33% |
Combined marginal tax rates in BC
Your marginal rate is the rate on your next dollar of income. In BC, it is the sum of the provincial rate and the federal rate. Because the BC and federal thresholds do not line up, the combined schedule has 11 steps.
Ratesopedia calculated the combined rates in the table below from the official 2026 brackets. They do not include the BC tax reduction phase-out or the gradual reduction of the federal basic personal amount between $181,440 and $258,482. They also exclude CPP and EI contributions, which are not income tax.
| Taxable income | BC rate | Federal rate | Combined marginal rate |
|---|---|---|---|
| $0 to $50,363 | 5.6% | 14% | 19.6% |
| $50,363 to $58,523 | 7.7% | 14% | 21.7% |
| $58,523 to $100,728 | 7.7% | 20.5% | 28.2% |
| $100,728 to $115,648 | 10.5% | 20.5% | 31% |
| $115,648 to $117,045 | 12.29% | 20.5% | 32.79% |
| $117,045 to $140,430 | 12.29% | 26% | 38.29% |
| $140,430 to $181,440 | 14.7% | 26% | 40.7% |
| $181,440 to $190,405 | 14.7% | 29% | 43.7% |
| $190,405 to $258,482 | 16.8% | 29% | 45.8% |
| $258,482 to $265,545 | 16.8% | 33% | 49.8% |
| Over $265,545 | 20.5% | 33% | 53.5% |
For a deeper explanation of how these rates stack, read our guide to what a marginal tax rate is.
What you pay at $75,000 and $150,000
A marginal rate of 28.2% at $75,000 does not mean you pay 28.2% on everything. Each slice is taxed at its own rate, and credits come off the result. Ratesopedia estimated 2026 income tax for a BC employee, counting only the basic personal amounts and the BC tax reduction:
- $75,000 of taxable income: about $13,245 in combined income tax, an average rate of about 17.7%
- $150,000 of taxable income: about $38,433 in combined income tax, an average rate of about 25.6%
Your real bill will be lower once you claim CPP and EI credits and any other credits. To run your own numbers, use our BC income tax calculator or the income tax calculator.
BC credits worth knowing
BC's own credits are claimed on Form BC428, which is part of your federal T1 return. Unlike Quebec, BC does not run a separate provincial return: the CRA collects BC tax for the province.
- Basic personal amount: $13,216 for 2026, converted into a credit at 5.6%.
- BC tax reduction credit: up to $690 for 2026, reduced by 3.56% of net income above $25,570 and gone at $44,952.
- BC renter's tax credit: a refundable credit for renters; for 2026, it starts to shrink at $66,189 of adjusted income and reaches zero at $86,189.
- Age amount: $5,927 for 2026 if you are 65 or older, reduced when income exceeds $44,119.
- RRSP deduction: your RRSP contributions reduce taxable income for BC tax as well as federal tax.
Indexation pauses from 2027
Budget 2026 also changed what happens next. According to the province, BC will not index its tax brackets or its basic personal credits for the 2027 to 2030 tax years, and indexation resumes in 2031. If your pay rises with inflation, more of it will fall into higher BC brackets over those years.
How BC compares with other provinces
BC's top provincial rate of 20.5% is among the highest in Canada, but it only starts above $265,545. Ontario's top rate is 13.16%, and Alberta's is 15%. Our Ontario tax brackets guide explains Ontario's surtax, which changes the comparison for higher earners.
Capital gains use the same brackets at a lower effective rate. Only half of a capital gain is included in taxable income, so the effective rate on a gain is half your marginal rate. Our capital gains tax guide explains the calculation.
Conclusion
BC's 2026 brackets start at 5.6% and reach 20.5%, with thresholds indexed by 2.2% this year and frozen from 2027 to 2030. Federal tax comes on top, so the combined marginal rate ranges from about 19.6% to 53.5%. Knowing where your last dollar lands helps you judge the value of a raise, a bonus, or an RRSP contribution, which our RRSP guide covers in detail.
To get our tax and rate updates by email, sign up for the Ratesopedia newsletter.
Frequently asked questions about BC tax brackets
What are the BC tax brackets for 2026?
BC has seven brackets for 2026, according to the provincial government. The rate is 5.6% up to $50,363 and climbs through 7.7%, 10.5%, 12.29%, 14.7%, and 16.8% before reaching 20.5% above $265,545. Each rate applies only to the income inside its bracket. You can test your own situation with our BC income tax calculator.
Did BC raise its lowest tax rate in 2026?
Yes. The lowest BC rate is 5.6% for 2026, compared with 5.06% for 2025, according to the province's tax rates page. The change applies to the first $50,363 of taxable income. Because BC converts its basic credits at the lowest rate, the value of the basic personal amount rose at the same time. Compare the full picture with our income tax calculator.
What is the highest marginal tax rate in BC in 2026?
Ratesopedia calculates the top combined rate at 53.5% for 2026. It applies to taxable income above $265,545, where the 20.5% BC rate meets the 33% federal rate. Capital gains at that level face an effective rate of about half that figure. Our guide on marginal tax rates explains how the layers work.
What is the BC basic personal amount for 2026?
The BC basic personal amount is $13,216 for 2026. BC applies its 5.6% credit rate to it, so it reduces your provincial tax by about $740. The federal basic personal amount is a separate $16,452 credit. Our guide on how to file taxes in Canada shows where each credit goes on the return.
Will BC tax brackets rise with inflation in 2027?
No. According to the province, Budget 2026 paused the indexation of BC tax brackets and basic personal credits for the 2027 to 2030 tax years. Indexation is set to resume for 2031. The federal brackets keep their own annual indexation, which the CRA publishes each year. Read our guide to what a marginal tax rate is to see why frozen thresholds matter.
Does an RRSP contribution reduce BC tax?
Yes. An RRSP contribution is deductible on your return, so it lowers both federal and BC tax at your combined marginal rate. At $75,000 of income, that rate is 28.2%, so a $5,000 contribution cuts about $1,410 of income tax. Compare it with a TFSA using our RRSP vs TFSA calculator.
Read next
