BC tax rates start with a progressive personal income tax running from 5.06% on the first $50,363 of taxable income up to 20.5% on income above $265,545 for the 2026 tax year, a 7% provincial sales tax on most purchases, corporate rates of 2% and 12%, and a handful of property and payroll taxes on top.1Government of British Columbia. Personal Income Tax Rates Provincial tax sits on top of federal tax, so every rate below is only half the picture.
Personal Income Tax Brackets
Seven brackets apply for 2026. Only the income falling inside each range is taxed at that bracket’s rate:1Government of British Columbia. Personal Income Tax Rates
- 5.06% on the first $50,363
- 7.70% on $50,363 to $100,728
- 10.50% on $100,728 to $115,648
- 12.29% on $115,648 to $140,430
- 14.70% on $140,430 to $190,405
- 16.80% on $190,405 to $265,545
- 20.50% on income above $265,545
Someone earning $120,000 doesn’t pay 12.29% on the whole amount. They pay the lower rates on each earlier slice and 12.29% only on the portion between $115,648 and $120,000. Combined with federal income tax, the top marginal rate in BC exceeds 53%.
Basic Personal Amount and Renter’s Credit
The basic personal amount for 2026 is $13,216, a non-refundable credit that effectively wipes out provincial tax on the first $13,216 of income.2Government of British Columbia. B.C. Basic Personal Income Tax Credits BC also offers a renter’s tax credit worth up to $400 a year for individuals and families with adjusted income at or below $60,000, phasing out above that threshold.3Government of British Columbia. B.C. Renter’s Tax Credit It has to be claimed on the return; it isn’t paid out automatically.
Provincial tax is filed as part of the federal T1 return using Schedule BC428. Most individuals file and pay by April 30; self-employed filers have until June 15, but any balance owing is still due April 30.
Corporate Income Tax Rates
Canadian-controlled private corporations pay a 2% small business rate on the first $500,000 of active business income. Income above that limit, and income earned by corporations that don’t qualify as CCPCs, is taxed at the general provincial rate of 12%.4Government of British Columbia. Corporate Income Tax Rates and Business Limits
Investment income inside a corporation — interest, rental income, capital gains — doesn’t qualify for the small business rate at any company size. It’s taxed at the general 12% rate provincially, on top of federal corporate tax.
Provincial Sales Tax
PST is 7% on most goods and many services, set by the Provincial Sales Tax Act.5BC Laws. Provincial Sales Tax Act A few categories carry higher rates:
- Liquor: 10% at the point of sale6Government of British Columbia. Accommodation
- Short-term accommodation (hotels and similar lodgings): 8%6Government of British Columbia. Accommodation
Basic groceries, prescription medications, children’s clothing in qualifying sizes, and certain medical devices are exempt from PST.
PST on Vehicles
Passenger vehicles bought from a GST-registered dealer follow a tiered schedule that climbs sharply with price:7Government of British Columbia. Provincial Sales Tax Bulletin – Vehicles
- Under $55,000: 7%
- $55,000 to $55,999: 8%
- $56,000 to $56,999: 9%
- $57,000 to $124,999: 10%
- $125,000 to $149,999: 15%
- $150,000 and over: 20%
Zero-emission vehicles get the 7% rate up to $75,000 instead of $55,000, with the higher tiers starting above that. The incentive runs until February 2027.8Government of British Columbia. PST 116 – Motor Vehicle Dealers and Leasing Companies Private-sale vehicles carry a flat 12% PST up to $124,999, which is well above the dealer rate at the same price.
Employer Health Tax
The employer health tax replaced Medical Services Plan premiums in 2019, and the thresholds were raised starting with the 2024 tax year. For 2026:9Government of British Columbia. Employer Health Tax Overview
- Payroll of $1,000,000 or less: exempt
- Payroll of $1,000,001 to $1,500,000: 5.85% on the amount above $1,000,000
- Payroll over $1,500,000: 1.95% on the entire payroll
A business with $1,200,000 in BC remuneration pays 5.85% on $200,000, or $11,700. Once payroll passes $1,500,000, the 1.95% rate applies to the full amount, not just the portion above the threshold. Employers over the threshold must register and make quarterly installments.
Property Transfer Tax
Buyers of real estate pay property transfer tax at registration, using a marginal rate structure: 1% on the first $200,000 of fair market value, 2% from $200,000 to $2,000,000, 3% from $2,000,000 to $3,000,000, and 5% on residential value above $3,000,000 (3% for commercial above that point). First-time home buyers can qualify for a full or partial exemption below certain value thresholds.
Foreign nationals, foreign corporations, and taxable trustees pay an additional 20% property transfer tax on purchases in designated regions: Metro Vancouver, the Fraser Valley, the Capital Regional District, the Regional District of Central Okanagan, and the Regional District of Nanaimo.10Government of British Columbia. Additional Property Transfer Tax for Foreign Entities and Taxable Trustees On a $1,000,000 Vancouver home, that adds $200,000 to the standard transfer tax. Foreign nationals holding a BC Provincial Nominee Program work permit are exempt.
Speculation and Vacancy Tax
Properties in designated areas that sit vacant, or whose owners don’t pay income tax in Canada, face the speculation and vacancy tax. For 2026, foreign owners and untaxed worldwide earners pay 3% of assessed value annually; specified Canadian citizens and permanent residents pay 1%. Owners who live in the property or rent it out are generally exempt, along with certain other cases such as renovation or medical absence.
Home Flipping Tax
The BC home flipping tax began January 1, 2025. Selling a residential property within 365 days of buying it triggers a 20% tax on the profit. Between 366 and 729 days, the rate slides down toward zero. At 730 days or more, the tax doesn’t apply.11Government of British Columbia. How to Calculate Your BC Home Flipping Tax The taxable amount is sale proceeds less purchase price and the cost of improvements. A primary residence deduction can reduce or eliminate the bill for people who actually lived in the home. This tax is separate from and in addition to federal capital gains rules.
Carbon Tax Has Been Eliminated
BC’s carbon tax, which reached $80 per tonne of carbon dioxide equivalent and added roughly 17.61 cents per litre to gasoline, was eliminated effective April 1, 2025.12Government of British Columbia. Carbon Tax Rates by Fuel Type The federal carbon charge ended around the same time. BC’s motor fuel tax is a separate levy and still applies, so fuel still carries tax beyond the base price.