B.C. personal income tax increased for first $50,363 earned starting in 2026
The provincial government emphasizes that those with lower incomes will come out ahead when the increased tax credit is accounted for, with middle- and higher-income taxpayers being the residents who actually pay for the higher tax rate for the first $50,363 they earn and providing an overall personal income tax revenue increase.
For the 2026 tax year, the maximum B.C. tax reduction credit will go up by $115 to $690, which will specifically benefit incomes under $25,570. Taxpayers with incomes under $44,950 will see a partial credit.
The provincial government estimates a single/individual taxpayer earning $100,000 will pay $4,786 in B.C. personal income tax, which is the lowest among Canadian provinces. For comparison, in other provincial jurisdictions, the same individual would pay $5,470 in Alberta’s personal income taxes, which is the lowest outside B.C., and $10,383 in Nova Scotia, which is the highest among all provinces.
Additionally, starting in 2026, the personal income tax brackets and non-refundable tax credits will be paused at 2026 income levels.
“This change will impact the province’s seven personal income tax bracket amounts, as well as non-refundable personal income tax credit amounts, including the basic personal amount, age amount, and disability amount. The change will have a greater effect on British Columbians with higher incomes,” states the budget document.
The B.C. government’s personal income tax revenues are expected to increase from $19.2 billion in 2025/2026 to $19.49 billion in 2026/2027, $20.7 billion in 2027/2028, and $22 billion in 2028/2029.
This increase is deemed to be one strategy to help the provincial government narrow the gap in its structural deficit issues. For years, there has been a complete mismatch between the sluggish pace in growth in revenues — driven by economic uncertainty and structural economic issues — and staggering increases in spending, with a deficit of $9.61 billion budgeted for 2025/2026, $13.3 billion for 2026/2027, $12.2 billion for 2027/2028, and $11.4 billion for 2028/2029.
Additionally, there will also be changes to the Provincial Sales Tax (PST) starting later in 2026, and the School Tax — a provincial property tax — and the Speculation and Vacancy Tax beginning in 2027.
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