B.C. personal income tax increased for first $50,363 earned starting in 2026 | Daily Hive

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There are some notable changes in the Government of British Columbia’s 2026 budget relating to the provincial personal income tax.

Starting after July 1, 2026, the personal income tax rate will increase by 0.54 per cent from 5.06 per cent to 5.6 per cent, specifically applied to the first $50,363 of taxable income for 2026.

According to the newly released budget today, the average taxpayer will pay an additional $76 in income taxes in 2026, and over 40 per cent of taxpayers will see tax savings when combined with an increase to the B.C. tax reduction credit they receive for their lower incomes.

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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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