British Columbia Tax Guide

BC Tax Brackets 2024

Key BC Tax Credits

BC Climate Action Tax Credit

Quarterly payment to offset carbon tax costs:

• Adults: Up to $504/year
• Children: Up to $126/year
• Income-tested (phases out at higher incomes)
• Paid quarterly with GST/HST credit

Eligibility

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

BC Family Benefit

Monthly payments for families with children:

• Up to $1,750 per child under 18
• Based on family net income
• Paid monthly with CCB
• Fully refundable

BC Training Tax Credit

• For apprentices in Red Seal trades
• $1,000 per level completed
• Up to $2,500 for completion
• Employers can also claim a credit

BC Mining Flow-Through Share Tax Credit

• 20% of BC mining exploration expenses
• For flow-through share investors
• Applies to BC mineral exploration

BC Sales Taxes

Provincial Sales Tax (PST)

• General rate: 7%
• Liquor: 10%
• Accommodation: 8%
• Separate from 5% federal GST

What's Exempt from PST

• Basic groceries
• Children's clothing (under 15)
• Prescription medications
• Bicycles

Property Transfer Tax

Paid when buying property in BC:

• 1% on first $200,000
• 2% on $200,001 to $2,000,000
• 3% on amounts over $2,000,000
• Additional 2% for homes over $3,000,000

First Time Home Buyers' Exemption

• Full exemption for homes up to $500,000
• Partial exemption up to $525,000
• Must be first-time buyer
• Canadian citizen or permanent resident

Newly Built Home Exemption

• Full exemption up to $750,000
• Partial exemption up to $800,000
• New construction or substantially renovated

Speculation and Vacancy Tax

Annual tax on vacant homes in certain areas:

• Foreign owners/satellite families: 2%
• Canadian citizens/PR not paying BC income tax: 1%
• BC residents: 0.5%
• Applies in Metro Vancouver, Victoria, other urban areas

Exemptions

• Principal residence
• Rented at least 6 months/year
• Recent purchase (first year)
• Various life circumstances

BC Carbon Tax

Tax on fossil fuels:

• Currently $65 per tonne of CO2
• Included in fuel prices
• BC Climate Action Tax Credit helps offset

Medical Services Plan (MSP)

• BC eliminated MSP premiums in 2020
• Replaced by Employer Health Tax
• No individual premium payments

Employer Health Tax

• Employers with payroll over $500,000
• 1.95% rate for payrolls over $1.5 million
• No employee contribution

BC Tax Planning Strategies

Income Splitting

• Pension income splitting at 65+
• Spousal RRSP contributions
• Family trust strategies (with professional advice)

Capital Gains Planning

• Time gains for lower income years
• Use capital losses to offset gains
• Principal residence exemption planning

Maximize Tax Credits

• File taxes even with low/no income for benefits
• Claim all eligible credits
• Ensure proper benefit applications

BC vs Other Provinces

• Low income: BC competitive with 5.06% lowest bracket
• Middle income: BC moderate compared to Ontario
• High income: BC highest outside Quebec/NS
• Benefits: Strong family and climate credits