The personal income tax brackets and tax rates in British Columbia are average compared to more heavily taxed provinces like Manitoba and Quebec.
It is set up as a progressive tax system similar to other jurisdictions in Canada, and you pay more in taxes as your taxable income increases.
The lowest tax rate in B.C. in 2022 is 5.06%, and it applies to income up to $43,070. On the other end of the spectrum, you pay 20.50% on income over $227,091.
Since you are also required to pay federal taxes, the marginal rates for B.C. paint a different picture. The top combined provincial and federal tax rate on regular income in British Columbia is 53.50%.
For the tax brackets in Ontario, Alberta, and Manitoba, see below:
B.C. Tax Brackets 2022
The income tax brackets and rates in B.C. for the 2021 and 2022 tax years are:
|B.C. Tax Bracket 2022||Tax Rate 2022||B.C. Tax Bracket 2021||Tax Rate 2021|
|Up to $43,070||5.06%||Up to $42,184||5.06%|
|$43,071 to $86,141||7.70%||$42,185 to $84,369||7.70%|
|$86,142 to $98,901||10.50%||$84,370 to $96,866||10.50%|
|$98,902 to $120,094||12.29%||$96,867 to $117,623||12.29%|
|$120,095 to $162,832||14.70%||$117,624 to $159,483||14.70%|
|$162,833 to $227,091||16.80%||$159,484 to $222,420||16.80%|
|$227,092 and over||20.50%||$222,421 and over||20.50%|
The way this works is that you pay:
- 5.06% on the first $43,070 of taxable income, plus
- 7.70% on the next $43,071 (i.e. on the portion of taxable income over $43,070 up to $86,141), plus
- 10.50% on the next $12,760 (i.e. on the portion of taxable income over $86,141 up to $98,901), plus
- 12.29% on the next $21,193 ( i.e. on the portion of taxable income over $98,901 up to $120,094), plus
- 14.70% on the next $42,738 ( i.e. on the portion of taxable income over $120,094 up to $162,832), plus
- 16.80% on the next $64,259 (i.e. on the portion of taxable income over $162,832 up to $227,091), plus
- 20.50% on amounts exceeding $227,091.
These tax brackets were increased in 2022 using B.C.’s Consumer Price Index (CPI) rate of 2.1%. As such, the indexation factor applied was 1.021.
Before applying taxes to your income, a basic personal amount is deducted. For B.C., the basic personal amount for 2022 is $11,302.
In addition to provincial taxes, Canadians pay federal taxes in 2022 as follows:
|Federal Taxable Income||Federal Tax Rate|
|Up to $50,197||15%|
|Over $50,197 up to $100,392||20.50%|
|Over $100,392 up to $155,625||26%|
|Over $155,625 up to $221,708||29%|
|$221,708 and over||33%|
The indexation factor applied to federal taxes in 2022 is 1.024 (2.4%).
Related: Federal and Provincial Benefits for Seniors
B.C. Marginal Tax Rates 2022 (Federal and Provincial)
Your marginal tax rate varies depending on the source of your income. For example, you pay a different rate on employment and interest income compared to dividends and capital gains.
The combined federal and provincial taxes you are paying on incremental income in each category are:
|Taxable Income||Regular Income||Capital Gains||Ineligible Canadian Dividends||Eligible Canadian Dividends|
|Up to $42,184||20.06%||10.03%||10.43%||-9.60%|
|$43,071 to $50,197||22.70%||11.35%||13.47%||-5.96%|
|$50,198 to $86,141||28.20%||14.10%||19.80%||1.63%|
|$86,142 to $98,901||31.00%||15.50%||23.02%||5.49%|
|$98,902 to $100,392||32.79%||16.40%||25.07%||7.96%|
|$100,393 to $120,094||38.29%||19.15%||31.40%||15.55%|
|$120,095 to $155,625||40.70%||20.35%||34.17%||18.88%|
|$155,626 to $162,832||44.02%||22.01%||38.00%||23.46%|
|$162,833 to $221,708||46.12%||23.06%||40.41%||26.35%|
|$221,709 to $227,091||49.80%||24.90%||44.64%||31.44%|
The maximum combined federal and provincial marginal tax rates payable in British Columbia are:
- Regular income: 53.50%
- Capital gains: 26.75%
- Ineligible Canadian dividends: 48.89%
- Eligible Canadian dividends: 36.54%
British Columbia Marginal Tax Rate Example
If you earned $90,000 in taxable salary and interest income, your 2022 taxes are calculated as follows:
- On the first $43,070 in income, you pay 20.06%, i.e. $43,070 × 0.2006 = $8,639.84
- On the next $7,127 ($50,197 – $43,070), you pay 22.70%, i.e. $7,127 × 0.2270 = $1,617.83
- On the next $35,349 ($86,141 – $50,197), you pay 28.20%, i.e. $35,944 × 0.2820 = $10,136.21
- On the remaining $3,859 ($90,000 – $86,141), you pay 31%, i.e. $3,859 × 0.31 = $1,196.29
Your total tax payable in 2022 is $21,590.17.
With a taxable income of $90,000, your marginal tax rate is 31%, and this is the highest rate you pay on an additional dollar of income.
Your average tax rate is lower at 23.98% (calculated as $21,590.17 ÷ $90,000).
We did not deduct other federal and provincial tax credits you may qualify for. After factoring these in, your tax payable and average tax rate will likely be lower.
Related: Minimum Wage in Canada.
B.C. Tax Credits and Deductions
Refundable and non-refundable tax credits can lower your total tax burden.
A non-refundable tax credit reduced the taxes you owe until it reaches $0, while a refundable tax credit reduces the taxes you owe, and any excess is paid out as a tax refund.
Some of the tax credits applicable to B.C. include:
- Climate Action Tax Credit
- Political Contribution Personal Income Tax Credit
- Home Renovation Tax Credit for Seniors and Persons with Disabilities
- Farmer’s Food Donation Tax Credit
- Logging Tax Credit
- Mining Flow-Through Share Income Tax Credit
- Employee Share Ownership Plan and Employee Ventures Capital Corporation Tax Credits
- Sales Tax Credit
- Training Tax Credit
- Small Business Venture Capital Tax Credit
- Mining Exploration Tax Credit
You also have basic non-refundable tax credits, including the basic personal amount, caregiver credit, pension credit, charitable donations, and more.
Common deductions that lower your taxable income are RRSP contributions, CPP Contributions, and EI contributions.
B.C. Sales Tax
British Columbia charges a 7% Provincial Sales Tax (PST) on top of the 5% Goods and Services Tax (GST) levied by the federal government.
Overall, you are paying a combined 12% sales tax on most purchases.
Some goods attract a higher tax, such as Liquor (10%), Vapour products (20%), and Vehicles (7-20%).
How To File Your Taxes For Free in British Columbia
You are required to file a tax return by April 30 of each year for the previous tax year. If you are self-employed, the CRA gives you an extension until June 15th.
To file your income tax return, you can use:
- Electronic software: Depending on the software or your taxable income, you may file for free (e.g. Wealthsimple Tax or TurboTax).
- A paper income tax and benefit return. If you filed your taxes using a paper return for the 2021 tax year, CRA would automatically mail you an income tax package in early 2023.
- File by phone if you are eligible for the File My Return program. Call 1-800-959-8281 to find out if you are eligible.
- A free tax clinic in your area if you have a modest income and a straightforward tax situation.
You can learn about major tax changes for the year.