BC Tax Guide 2025 | British Columbia Tax Rates, Brackets & Credits

BC Tax Brackets 2025

British Columbia has a progressive tax system with 7 tax brackets. Here are the 2025 provincial tax rates (indexed for inflation):

Taxable Income	BC Tax Rate	Combined Rate*
Up to $47,937	5.06%	20.06%
$47,937 to $95,875	7.70%	22.70%
$95,875 to $110,076	10.50%	30.50%
$110,076 to $133,664	12.29%	32.29%
$133,664 to $181,232	14.70%	40.70%
$181,232 to $252,752	16.80%	46.12%
Over $252,752	20.50%	53.50%

*Combined federal + BC provincial marginal rate

Key BC Tax Credits & Benefits

BC Climate Action Tax Credit

Quarterly payment to help offset carbon tax costs:

Adults: Up to $504/year ($126/quarter)
Children: Up to $126/year ($31.50/quarter)
Income-tested: Phases out at higher incomes
Payment schedule: Quarterly with GST/HST credit (Jan, Apr, Jul, Oct)

Eligibility Requirements

BC resident on December 31 of the tax year
File tax return (even with no income)
Age 19+ (or parent, married, or previously married)

BC Family Benefit

Monthly payments for families with children under 18:

Maximum benefit: Up to $1,750 per child per year
Income-tested: Based on family net income
Payment: Monthly, combined with CCB
Refundable: You get it even if you owe no tax

Automatic Payments

Both the BC Climate Action Tax Credit and BC Family Benefit are paid automatically when you file your taxes—no separate application needed. Just make sure to file your return!

BC Training Tax Credit

For apprentices: In Red Seal trades programs
Per level: $1,000 per level completed
Completion bonus: Up to $2,500 for program completion
Employers: Can also claim a credit for hiring apprentices

BC Mining Flow-Through Share Tax Credit

Credit rate: 20% of BC mining exploration expenses
For: Flow-through share investors
Applies to: BC mineral exploration activities

BC Sales Taxes

Provincial Sales Tax (PST)

BC charges PST separately from GST (unlike HST provinces):

General rate: 7% on most goods and services
Liquor: 10%
Accommodation: 8%
Combined with GST: 12% total (5% GST + 7% PST)

What's Exempt from PST

Basic groceries – food for human consumption
Children's clothing – for children under 15
Prescription medications – drugs prescribed by a doctor
Bicycles – including parts and accessories

BC Property Transfer Tax

Paid when buying property in BC:

Property Value	Tax Rate
First $200,000	1%
$200,001 to $2,000,000	2%
Over $2,000,000	3%
Over $3,000,000 (additional)	+2%

First Time Home Buyers' Exemption

Full exemption: Homes up to $500,000
Partial exemption: Homes up to $525,000
Requirements: First-time buyer, Canadian citizen or PR
Savings: Up to $8,000 in tax

Newly Built Home Exemption

Full exemption: Up to $750,000
Partial exemption: Up to $800,000
Applies to: New construction or substantially renovated homes
Savings: Up to $13,000 in tax

Speculation and Vacancy Tax

Annual tax on vacant homes in certain BC areas:

Owner Type	Tax Rate
Foreign owners / satellite families	2%
Canadian citizens/PR not paying BC tax	1%
BC residents	0.5%

Applies in: Metro Vancouver, Victoria, Nanaimo-Lantzville, and other designated areas.

Exemptions from Speculation Tax

Principal residence – your main home
Rented property – rented at least 6 months per year
Recent purchase – first year of ownership
Life circumstances – medical, separation, etc.

BC Carbon Tax

Tax on fossil fuels to reduce greenhouse gas emissions:

Current rate: $80 per tonne of CO2 (2025)
Included in: Fuel prices at the pump
Offset: BC Climate Action Tax Credit helps offset the cost

Carbon Tax Pause

The federal government has announced a pause on the consumer carbon tax. Check current rates with the BC Ministry of Finance for the latest information on BC's carbon tax status.

Medical Services Plan (MSP) & Employer Health Tax

MSP premiums: Eliminated in 2020 – no individual payments
Replacement: Employer Health Tax

Employer Health Tax

Who pays: Employers with payroll over $500,000
Rate: 1.95% for payrolls over $1.5 million
Employees: No employee contribution required

BC Tax Planning Strategies

Income Splitting

Pension income splitting: At age 65+, split up to 50% with spouse
Spousal RRSP: Contribute to spouse's RRSP for future income splitting
Family trusts: Complex strategy requiring professional advice

Capital Gains Planning

Timing: Realize gains in lower income years
Loss harvesting: Use capital losses to offset gains
Principal residence: Maximize exemption with proper planning

Maximize Tax Credits

File your return: Even with low/no income to receive benefits
Claim everything: Medical, donations, tuition transfers
Track receipts: Throughout the year for all eligible expenses

High Income Earners

BC's top marginal rate of 53.5% (combined federal/provincial) kicks in at $252,752. Consider RRSP maximization, pension income splitting, and incorporation strategies to reduce your tax burden.

BC vs Other Provinces

Low income: BC competitive with 5.06% lowest bracket (one of the lowest in Canada)
Middle income: BC rates are moderate compared to Ontario
High income: BC has one of the highest top rates outside Quebec and Nova Scotia
Benefits: Strong family benefits and climate action credits

Questions About BC Taxes?

Our AI tax assistant can help answer specific questions about British Columbia taxes, credits, and tax planning strategies.

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Disclaimer: Tax rates and credits are subject to change. This guide provides general information only. Verify current rates with the BC Ministry of Finance or consult a tax professional for advice specific to your situation.

British Columbia Tax Guide 2025

BC Tax at a Glance for 2025