British Columbia Income Tax Calculator 2026

BC income tax brackets explained: $70,000 worked example

A British Columbia employee earning $70,000 in 2026 pays about $3,294 in BC tax and $7,278 in federal tax, and takes home $54,348 after CPP and EI. BC has 7 brackets, but at this salary only 2 apply to taxable income of $69,335 (salary less enhanced CPP):

BC credits and the tax reduction

BC non-refundable credits are worth 5.60% of the amounts claimed. The $13,216 basic personal amount, base CPP and EI give $987.33 of credits in this example, for BC tax of $3,293.85.

The BC tax reduction helps lower incomes. At $30,000 of salary it is worth $541.73, leaving BC tax of only $282.50. At $70,000 it has phased out completely. Payroll gives you the reduction automatically, and the BC428 settles the exact figure on your return.

What changed for 2026: withholding versus your return

The February 2026 budget raised BC’s lowest rate and the tax reduction for the whole of 2026, but employers only received the new figures with the CRA’s July payroll formulas. For the second half of the year payroll used a higher, prorated rate and reduction so that a full year of steady pay with one employer would be withheld at the new annual figures.

Your return does not use the payroll rates. The BC428 applies the annual 5.60% lowest rate and the annual tax reduction to your whole year’s income, which is what the calculator above does. If your pay was uneven across the year, for example a job that ended before July or one that started after it, withholding may not match the annual figures exactly, and the difference is settled when you file.

BC family benefit: what middle-income families get

The BC family benefit is a tax-free monthly payment for families with children under 18, based on the adjusted family net income on your return. Beyond the maximums already listed above, gov.bc.ca explains how it works at higher incomes:

• Middle-income families keep a guaranteed minimum of $775 for the first child, $750 for the second and $725 for each additional child until adjusted family net income passes $96,562.
• Above $96,562 the benefit falls by 4.0% of the excess income until it reaches zero.
• Low-income single-parent families get an annual supplement of up to $500 per family.
• There is no separate application: a child registered for the Canada child benefit is automatically registered, and the BC benefit arrives as one combined monthly payment with the CCB.

BC tax forms and payroll: BC428, BC479 and TD1BC

The CRA administers BC tax. You calculate it on Form BC428 and claim refundable credits on BC479, both filed with your T1.

At work, you complete the TD1BC alongside the federal TD1. The province you lived in on December 31 decides which provincial tax applies to the whole year’s income.

British Columbia vs Alberta: after-tax income compared

With 2026 rates, BC employees take home $65 less than Alberta employees at $45,000, and $809 more at $120,000. At $70,000 they take home $241 more. BC’s higher brackets then take over at the top, and BC also charges PST, which Alberta does not: