How do tax brackets work in BC?
BC tax brackets are added to federal tax brackets to determine the total amount of income tax you’ll pay. For 2025, the highest combined marginal tax rate is 53.5% on every dollar you make over $259,829. The lowest marginal tax rate is 20.06% on the first $49,279 you make.
Are BC tax brackets incremental?
Yes, BC tax brackets are incremental. The more you earn, the more tax you pay on that additional income. Incremental tax brackets mean that those who earn more pay a higher percentage of their income to the CRA. A uniform tax rate would mean that everyone, no matter their income, paid the same percentage. That leads to high income earners paying a relatively small amount.
What are the tax brackets in British Columbia?
In British Columbia, taxes are paid according to graduated rates. Graduated rates mean that for a specified increase in your income, your tax rate for that portion of your income goes up. For every dollar a taxpayer earns above $240,716, their income is taxed on the marginal tax rate of 20.5%.