British Columbia Taxes Overview
The former British Columbia Provincial Sales Tax (PST) was introduced on July 1, 1948. It was initially set at 3% but later rose to 7%. After briefly converting to a harmonized sales tax (HST) British Columbia (BC) returned to a PST system on April 1, 2013 with a rate of 7%.
BC uses a progressive income tax structure with seven rates. The brackets increase yearly based on inflation. For 2023, the federal basic personal amount is $15,000 while the BC amount is $11,981. Businesses in BC that sell or lease taxable goods or services must register to collect and remit BC PST unless they are small sellers.
Income Tax in British Columbia
In 2014, those earning $50,000 to $99,999 in BC paid 32.6% income tax. This bracket had 23.1% of tax filers. Before taxes an income of $250,000 is 5 times $50,000. After tax it is 4 times more. Taxable income is gross income less deductions.
Tax Rates and Cost of Living
The PST in BC is 7%. The tax burden in BC is $2,353 versus $3,338 in Alberta. BC has a reputation for high taxes due to the cost of living. Groceries are cheaper in Alberta.