Tax season is coming up in Canada, and with some of the country’s recent changes to tax bracket thresholds, you might find yourself paying a different amount this year. If you’re wondering where you fall, we cover everything you need to know about tax season and rates in B.C.
Inflation Adjustments
The Government of Canada is responsible for setting the federal income tax rates for individuals, and each province and territory determines their own income tax rates, too. Depending on where you live, you could be paying some pretty different taxes when compared to another part of Canada.
It’s standard for the Canada Revenue Agency (CRA) to adjust the federal tax brackets every year for inflation. As for this year, it’s added up to a 2.7% increase. And quite notably, the lowest tax rate has dropped from 15% to 14%. Since it occurred halfway through the year (July 1, 2025), your full annual income will be taxed at a rate of 14.5% to reflect this blended percentage.
2025 Federal Income Tax Rates
Here’s what your taxable income rates look like depending on how much you make:
- 14.5%: on the portion of taxable income that is $57,375 or less, plus
- 20.5%: on the portion of taxable income over $57,375 up to $114,750, plus
- 26%: on the portion of taxable income over $114,750 up to $177,882, plus
- 29%: on the portion of taxable income over $177,882 up to $253,414, plus
- 33%: on the portion of taxable income over $253,414
Tax Rates In B.C.
As for B.C.’s specific tax brackets, here’s what you can expect:
- 5.06%: on the first $49,279 of taxable income, plus
- 7.7%: on the portion over $49,279 up to $98,560, plus
- 10.5%: on the portion over $98,560 up to $113,158, plus
- 12.29%: on the portion over $113,158 up to $137,407, plus
- 14.7%: on the portion over $137,407 up to $186,306, plus
- 16.8%: on the portion over $186,306 up to $259,829, plus
- 20.5%: on anything above $259,829
- Basic personal amount: $12,932
Looking for more on everything financial in B.C. and Canada? Check out our Finance section to stay up-to-date with what’s going on.
