Filing income taxes can be complicated, especially determining how much you actually owe based on your specific situation. This article provides an overview of BC income taxes in 2024 and 2025, including a detailed breakdown of BC tax brackets, a step-by-step calculation, capital gains tax rates, deductions/credits, and more. Whether you lived in BC all of 2024 or just moved recently, use this guide to understand your BC tax obligation and determine if you qualify for any deductions or credits.
2024 & 2025 BC Tax Rates
British Columbia has a graduated income tax system, meaning higher earnings are taxed at higher rates. Your specific tax bracket depends on your annual taxable income. Here are the Federal tax rates and BC tax rates for 2024 and 2025:
2025 BC Tax Brackets
| 2025 BC Tax Rate | 2025 BC Tax Bracket | 2025 Federal Tax Rate | 2025 Federal Tax Bracket |
|---|---|---|---|
| 5.06% | $49,279 or less | 15% | $57,375 or less |
| 7.7% | over $49,279 to $98,560 | 20.5% | over $57,375 to $114,750 |
| 10.5% | over $98,560 to $113,158 | 26% | over $114,750 to $177,882 |
| 12.29% | over $113,158 to $137,407 | 29% | over $177,882 to $253,414 |
| 14.7% | over $137,407 to $186,306 | 33% | over $253,414 |
| 16.8% | over $186,306 to $259,829 | ||
| 20.5% | over $259,829 |
2024 BC Tax Brackets
| 2024 BC Tax Rate | 2024 BC Tax Bracket | 2024 Federal Tax Rate | 2024 Federal Tax Bracket |
|---|---|---|---|
| 5.06% | $47,937 or less | 15% | $55,867 or less |
| 7.7% | over $47,937 to $95,875 | 20.5% | over $55,867 to $111,733 |
| 10.5% | over $95,875 to $110,076 | 26% | over $111,733 to $173,205 |
| 12.29% | over $110,076 to $133,664 | 29% | over $173,205 to $246,752 |
| 14.7% | over $133,664 to $181,232 | 33% | over $246,752 |
| 16.8% | over $181,232 to $252,752 | ||
| 20.5% | over $252,752 |
So, if you earned $135,000 in BC during 2024, you would have been taxed at 14.7%. But if you earn $135,000 in 2025, your income is only taxed at 12.29% due to the bracket adjustments.
Source: Government of Canada
BC Basic Personal Income Tax Credit
All Canadian residents can claim the “basic personal amount” tax credit on their federal return and on their BC return. This effectively reduces your first dollars of taxable income.
- 2024 BC BPA: $12,580 (5.06% tax credit)
- 2025 BC BPA: $12,932 (5.06% tax credit)
So, in 2025, you can earn $12,932 completely tax-free in BC.
Federal Basic Personal Amount
- 2024 Federal BPA: $14,156 to $15,705 (15% tax credit)
- 2025 Federal BPA: $14,538 to $16,129 (14.5% tax credit)
This also reduces your initial taxable income when calculating federal taxes.
BC Marginal Tax Rates
Your ultimate tax liability is based on a combination of both federal and provincial taxes. Here is a breakdown of the combined marginal rates on various income types based on your BC tax bracket:
| 2025 Taxable Income | 2025 BC Marginal Rate |
|---|---|
| $12,932 or less | 0.00 |
| $12,933 to $16,129 | 5.06% |
| $16,130 to $49,279 | 20.06% |
| $49,280 to $57,375 | 22.70% |
| $57,376 to $98,560 | 28.20% |
| $98,561 to $113,158 | 31.00% |
| $113,159 to $114,750 | 32.79% |
| $114,751 to $137,407 | 38.29% |
| $137,408 to $177,882 | 40.70% |
| $177,883 to 186,306 | 44.02% |
| $186,307 to $253,414 | 46.12% |
| $253,415 to 259,829 | 49.80% |
| $259,830 and over | 53.50% |
The marginal tax rate refers to the rate you pay on your next dollar earned based on your top income tax bracket. This rate directly impacts any additional income, as the top slice of those earnings will be taxed at that percentage.
BC Capital Gains Tax Rates
When you sell a capital property for more than its adjusted cost base (your cost + selling expenses), the resulting profit is considered a capital gain. Only 50% of realized capital gains are subject to tax in Canada based on your province of residence and income level. Here are the 2025 BC capital gains rates.
| 2025 Taxable Income | 2025 BC Capital Gains Tax Rate |
|---|---|
| First $49,279 | 9.78% |
| $49,280 to $98,560 | 11.10% |
| $98,561 to $113,158 | 14.10% |
| $113,159 to $114,750 | 15.50% |
| $114,751 to $137,407 | 16.40% |
| $137,408 to $177,882 | 20.35% |
| $177,883 to $186,306 | 22.01% |
| $186,307 to $253,414 | 23.06% |
| $$253,415 to $259,829 | 24.90% |
| Over $259,829 | 26.75% |
So if you realize capital gains over $259,829 in 2025, your effective rate is 26.75% based on the 50% inclusion.
How Can You Calculate Your BC Income Tax?
Here is a step-by-step guide to manually determine your BC income tax based on the 2025 tax brackets and rates:
- Determine taxable income: Subtract any pre-tax deductions from your total income
- Apply federal tax brackets: Referencing federal rates, calculate the federal tax
- Apply BC provincial tax brackets: Based on your specific brackets, determine the BC tax
- Add CPP/EI contributions: Include payroll deductions in total
- Calculate total deductions: Federal tax + Provincial tax + CPP/EI contributions
Example Calculation: $100,000 Annual Income
Let’s go through an example for someone with $100,000 of BC income in 2025:
- Federal Tax: $100,000 places them in the 20.5% federal bracket, so federal tax owed is $14,045
- Provincial Tax: $100,000 places them in the 10.5% BC bracket up to $110,076, so BC tax is $5,610
- CPP/EI Contributions: Estimate payroll deductions of $5,105
- Total Tax: $14,045 + $5,610 + $5,105 = $24,759
- After-Tax Income: $100,000 – $24,759 = $75,241
So, federal and provincial taxes combined with payroll deductions give a total tax bill of $24,759, leaving this individual with $75,241 in after-tax annual income based on the 2025 rates.
Living in other provinces in Canada? Explore your income tax with our tool
What Are the Key Tax Deductions and Credits in BC?
Beyond basic personal amounts, here are the most popular federal and BC provincial deductions and credits you can claim to reduce your overall tax burden:
- BC Child Opportunity Benefit: Up to $1,600 based on adjusted family net income and number of children. Available for families with incomes below $100,000.
- BC Climate Action Tax Credit: Paid quarterly based on family net income and rural status. Partially offsets carbon taxes.
- BC Sales Tax Credit: Quarterly credit paid based on marital and family status, income level, and residence, up to $75 per adult and child.
- BC Mining Flow-Through Share Tax Credit: 20% personal tax credit for investments into BC mining flow-through shares to encourage exploration.
FAQs on BC Tax Rates
How is self-employment income taxed in BC?
Self-employed BC residents report business income and deductions on a T2125 form and are taxed at personal rates after business expenses.
How are investments like stocks taxed in BC?
50% of capital gains realized on investments are taxable based on your top marginal tax bracket. Canadian dividends also receive preferential tax treatment through gross-up and credits.
Is tax owed when I sell my principal residence in BC?
No, gains from selling a primary residence in Canada are exempt from capital gains tax through the principal residence exemption.
The Bottom Line
While the specific dollar amounts change each year, the process for determining your BC income tax obligation remains essentially the same. Refer to the latest indexed tax information and use tax calculators annually to estimate your refund or amount owing well in advance of filing deadlines. Accurately completing your annual Canadian income tax returns ensures you pay only what is required for your individual situation while claiming all deductions and credits you are entitled to. Consult a certified tax expert if you have additional questions or complex tax considerations.
