BC Combined Tax Rates: Personal, Corporate, and Sales

In British Columbia, the tax you actually pay is almost always the sum of two rates: one set by Ottawa, one set by Victoria. For 2026, the combined BC tax rates that matter most are a top marginal personal income tax rate of 53.50%, a standard sales tax of 12% on most purchases (5% GST plus 7% PST), and a general corporate income tax rate of 27%. The rest of this guide breaks those headline numbers down by income level, income type, and transaction.

Combined Personal Income Tax Brackets for 2026

Both governments use progressive brackets, and the federal and provincial thresholds don’t line up. That means the combined marginal rate changes more often than either set of brackets would on its own. For 2026, Ottawa lowered its bottom rate from 15% to 14%, while B.C. raised its lowest rate from 5.06% to 5.60%.¹²

Here is what your top dollar of income is taxed at, federal and provincial combined, based on 2026 taxable income:

Up to $16,452: 0.00%, sheltered by the federal basic personal amount
$16,453 to $50,363: roughly 14% to 22.62%, depending on how B.C.’s low-income tax reduction interacts with your income
$50,364 to $58,523: 21.70%
$58,524 to $100,728: 28.20%
$100,729 to $115,648: 31.00%
$115,649 to $117,045: 32.79%
$117,046 to $140,430: 38.29%
$140,431 to $181,440: 40.70%
$181,441 to $190,405: 43.99%
$190,406 to $258,482: 46.09%
$258,483 to $265,545: 49.80%
$265,546 and above: 53.50%

These are marginal rates. Only the dollars inside each range are taxed at that rate, so crossing into a higher bracket never reduces what you keep from income earned lower down. The bump from 40.70% to 43.99% at $181,441 comes from a gradual clawback of the enhanced federal basic personal amount, which phases out entirely by $258,482.³

B.C.’s low-income tax reduction eliminates provincial tax entirely for residents with taxable income up to about $24,580. Between $25,571 and $41,722, the reduction claws back at 3.56%, which temporarily raises the combined rate on income in that band. Total tax owing is still lower than it would be without the reduction; you just see an unusually high marginal figure on that slice.²

Provincial Rates Alone

If you want the B.C. side by itself, the 2026 provincial brackets are 5.60% up to $50,363, 7.70% to $100,728, 10.50% to $115,648, 12.29% to $140,430, 14.70% to $190,405, 16.80% to $265,545, and 20.50% above that.² These sit on top of the federal brackets to produce the combined figures above.

The Basic Personal Amount and Why Your Effective Rate Is Lower

Before tax is calculated, both governments shelter a portion of income. For 2026, the federal basic personal amount is $16,452 for most taxpayers, though it phases down to a floor of $14,829 for anyone with net income of $258,482 or more.³ B.C. adds a separate basic personal amount of $13,216.⁴

Both amounts convert to non-refundable credits that directly reduce tax owing. That’s why someone earning $60,000 faces a 28.20% marginal rate on their last dollar but pays a much smaller percentage of their total income in tax. Seniors aged 65 or older can claim an additional B.C. age tax credit on a base of $5,927 (reduced once income exceeds $44,119), and the provincial disability tax credit has a base amount of $9,913, with $5,783 available for a child under 18.⁴ These stack with their federal equivalents.

One credit is gone. The B.C. climate action tax credit, which paid out quarterly to lower-income households, ended in 2025. The April 2025 payment was the last one.⁵

Capital Gains and Dividend Rates Are Different

The marginal rates above apply to ordinary income like salary. Two common types of investment income are taxed differently, and the difference is large enough to reshape how much you actually pay.

Only 50% of a capital gain is included in taxable income. A proposed increase to a 66.67% inclusion rate for annual gains above $250,000 was deferred multiple times and was not implemented for 2026.⁶ Because only half the gain is taxable, the effective combined tax on a capital gain is roughly half your marginal rate. At the top bracket, that works out to about 26.75%.

Canadian dividends run through a gross-up and credit mechanism designed to recognize that the corporation already paid tax on the underlying profit. Eligible dividends (typically from large public corporations) are grossed up by 38% and then reduced by federal and provincial dividend tax credits. B.C.’s 2026 dividend tax credit is 12% of the grossed-up amount for eligible dividends and 1.96% for non-eligible dividends.⁴

The net result: at lower income levels, the combined tax rate on eligible dividends can be negative, because the credits exceed the tax. At the top bracket, eligible dividends face a combined rate of about 36.54%, while non-eligible dividends are taxed at roughly 48.89%. Which type you hold matters for after-tax return.

Combined Sales Tax on Purchases

B.C. keeps its Provincial Sales Tax separate from the federal GST rather than merging the two into an HST. You pay both at the till as separate line items. On most goods and many services, the combined rate is 12%: 5% GST plus 7% PST.⁷

Basic groceries are zero-rated for GST and exempt from PST, so bread, meat, produce, dairy, canned goods, coffee, tea, and most snack foods carry no sales tax at all.⁸⁹ Prescription drugs and children’s clothing are also PST-exempt.

Some categories are taxed more heavily. Liquor carries a 10% PST rate instead of 7%, bringing the combined rate at the register to 15%.¹⁰ Short-term accommodation is taxed at 8% PST plus 5% GST for a base combined rate of 13%, with participating municipalities and regional districts able to add a Municipal and Regional District Tax of up to 3%. In the City of Vancouver, an additional 2.5% Major Events MRDT applies through January 31, 2030, so a downtown hotel stay can face combined taxes of up to 18.5%.¹¹ Passenger vehicles use an escalating PST schedule that rises with price, reaching a combined 25% on vehicles at $150,000 or more.

Combined Corporate Income Tax

Businesses in B.C. owe corporate income tax to both levels of government. The applicable rate depends on the size of the corporation and the type of income.

Canadian-controlled private corporations that qualify for the small business deduction pay a combined 11% on the first $500,000 of active business income: 9% federal and 2% provincial.¹²¹³ Income above $500,000, and income at larger corporations, is taxed at the general combined rate of 27%: 15% federal plus 12% provincial.

Qualifying zero-emission technology manufacturers pay a reduced federal rate of 7.5% or 4.5%, producing a combined general rate of 19.5% or a combined small business rate of 6.5%.¹² A corporation operating in multiple provinces allocates income by a formula based on payroll and revenue, and B.C.’s rate applies only to the B.C.-allocated share.

One B.C. levy sits outside the combined-rate framework because it has no federal counterpart: the Employer Health Tax, a payroll-based charge on employers with annual B.C. payroll above $1,000,000.¹⁴

Combined Rates on Real Estate Transactions

Buying property in B.C. triggers a Property Transfer Tax calculated on fair market value: 1% on the first $200,000, 2% up to $2,000,000, 3% up to $3,000,000, and 5% above that. On a $1,000,000 home, that is $18,000, due at closing and generally not eligible to be added to the mortgage.

First-time home buyers get a full PTT exemption on properties valued at $835,000 or less, with a partial exemption up to $860,000.¹⁵ Foreign nationals and foreign-controlled corporations pay an additional 20% PTT on purchases in Metro Vancouver, the Fraser Valley, the Capital Regional District, the Central Okanagan, and the Regional District of Nanaimo, on top of the regular PTT.¹⁶

Ownership itself is taxed in designated areas through the Speculation and Vacancy Tax when a property is neither occupied nor rented out. For 2026, the rate is 3% of assessed value for foreign owners and untaxed worldwide earners, and 1% for specified Canadian citizens and permanent residents. Vancouver’s separate Empty Homes Tax stacks on top; a foreign owner of a vacant Vancouver property can face combined annual vacancy taxes of around 6%.¹⁷ Even exempt homeowners must file an annual declaration.

Filing Deadline and What Late Costs You

For the 2025 tax year filed in 2026, the individual filing deadline is April 30, 2026. Self-employed filers have until June 15, 2026, but any balance owing is still due April 30.¹⁸

Missing the deadline with a balance owing triggers a late-filing penalty of 5% of the unpaid amount plus 1% for each full month the return is late, up to 12 months. If the CRA charged you a late-filing penalty in any of the three previous years and issued a demand to file, the penalty doubles to 10% plus 2% per month, up to 20 months. Interest compounds daily on the outstanding balance.¹⁹ Filing on time even without paying in full avoids the late-filing penalty entirely; interest on an unpaid balance is much cheaper than stacking both charges together.

1
Canada Revenue Agency. Tax Rates and Income Brackets for Individuals
2
Government of British Columbia. Personal Income Tax Rates
3
Canada Revenue Agency. Payroll Deductions Formulas – 122nd Edition Effective January 1, 2026
4
Government of British Columbia. B.C. Basic Personal Income Tax Credits
5
Province of British Columbia. Climate Action Tax Credit
6
Canada Revenue Agency. Government of Canada Announces Deferral in Implementation of Change to Capital Gains Inclusion Rate
7
Province of British Columbia. B.C. Provincial Sales Tax (PST)
8
Canada.ca. Basic Groceries
9
Government of British Columbia. Grocery and Drug Stores
10
Province of British Columbia. Small Business Guide to PST
11
Province of British Columbia. Accommodation
12
Canada Revenue Agency. Corporation Tax Rates
13
Province of British Columbia. Corporate Income Tax Rates and Business Limits
14
Province of British Columbia. Employer Health Tax Overview
15
Province of British Columbia. First Time Home Buyers Program
16
Province of British Columbia. Additional Property Transfer Tax for Foreign Entities and Taxable Trustees
17
Province of British Columbia. Speculation and Vacancy Tax
18
Canada Revenue Agency. The Minister of Finance and National Revenue and the Secretary of State Mark the Launch of the 2026 Tax-Filing Season
19
Canada Revenue Agency. Interest and Penalties on Late Taxes – Personal Income Tax