B.C. personal income tax rates apply to specific tax brackets. A tax bracket is a range of annual income. Income past a certain point is taxed at a higher rate. The tax brackets are indexed each year to the Consumer Price Index for B.C. (BC CPI).
For the 2016 tax year, the tax brackets were increased from the previous year by a BC CPI rate of 0.9%.
Note: For the 2015 tax year, there is a temporary tax rate and tax bracket of 16.8% on taxable income over $151,050.
Personal Income Tax Brackets and Rates – 2016 Tax Year
| Taxable Income – 2016 Brackets | Tax Rate |
| $0 to $38,210 | 5.06% |
| $38,210.01 to $76,421 | 7.70% |
| $76,421.01 to $87,741 | 10.50% |
| $87,741.01 to $106,543 | 12.29% |
| Over $106,543 | 14.70% |
Tax rates are applied on a cumulative basis. For example, if your taxable income is more than $38,210, the first $38,210 of taxable income is taxed at 5.06%, the next $38,211 of taxable income is taxed at 7.70%, the next $11,320 is taxed at 10.5%, the next $18,802 of taxable income is taxed at 12.29% and any taxable income over $106,543 is taxed at 14.70%.
Personal Income Tax Brackets and Rates – 2015 Tax Year
| Taxable Income – 2015 Brackets | Tax Rate |
| $0 to $37,869 | 5.06% |
| $37,869.01 to $75,740 | 7.70% |
| $75,740.01 to $86,958 | 10.50% |
| $86,958.01 to $105,592 | 12.29% |
| $105,592.01 to $151,050 | 14.70% |
| Over $151,050 | 16.80% |