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British Columbia's payroll tax changes from 1 July 2026

From 1 July 2026, CRA's payroll formulas apply a lowest B.C. rate of 6.14% on the first CAD 50,363 of annual income, up from 5.06%. It is a prorated rate, set so that the year as a whole comes out at the new rate. The other brackets are unchanged.

In force from in British Columbia. Figures worked out by Payloom's engine.

What changed

The B.C. tax reduction for lower incomes rose at the same time, to a prorated CAD 805, phasing out by CAD 44,952 of income.

B.C. income tax brackets (annual)

Until 30 June 2026
Income a yearRate
CAD 0.00 to CAD 50,363.005.06%
CAD 50,363.00 to CAD 100,728.007.7%
CAD 100,728.00 to CAD 115,648.0010.5%
CAD 115,648.00 to CAD 140,430.0012.29%
CAD 140,430.00 to CAD 190,405.0014.7%
CAD 190,405.00 to CAD 265,545.0016.8%
Above CAD 265,545.0020.5%
From 1 July 2026
Income a yearRate
CAD 0.00 to CAD 50,363.006.14%
CAD 50,363.00 to CAD 100,728.007.7%
CAD 100,728.00 to CAD 115,648.0010.5%
CAD 115,648.00 to CAD 140,430.0012.29%
CAD 140,430.00 to CAD 190,405.0014.7%
CAD 190,405.00 to CAD 265,545.0016.8%
Above CAD 265,545.0020.5%

What it does to a payslip

The same monthly pay, worked out by the engine on 30 June 2026 and again on 1 July 2026, with nothing else changed.

Gross a month (CAD) Take-home before Take-home after Change
3,000.00 2,541.31 2,542.23 +0.92
5,000.00 3,994.56 3,964.52 −30.04
9,000.00 6,610.28 6,583.09 −27.19
Work out your own figure

Who it affects

On low pay the larger tax reduction outweighs the higher rate, so take-home rises slightly. Above that, withholding rises: about CAD 30 a month on CAD 5,000.

How Payloom handles a change like this

The old rule closes on 30 June 2026 and the new one starts on 1 July 2026, both checked against the source and countersigned before they can price a real payroll. Months already paid keep the rules they were paid on, for good. A month calculated before the new rule arrived is marked out of date, and approving it is refused until it is worked out again.

Source

CRA's Payroll Deductions Formulas (T4127), 123rd Edition, effective 1 July 2026, B.C. rows and Step 5.

More rate changes

All rate changes