Taxes

Low Tax Rates

British Columbia has one of North America’s most competitive tax climates for businesses. Personal tax rates are also competitive.
 

Corporate Income Tax

British Columbia’s general corporate income tax rate is 11 per cent, among the lowest in Canada. Our combined federal-provincial rate is 26 per cent, among the lowest in G7 countries.
 

Combined federal-provincial corporate income tax rates – 2016

British Columbia 26.00%
Ontario 26.50%
California 40.75%
Washington 35.00%
Oregon 39.94%

Source: PwC research, January 2016
 

On the first $500,000 of business income, British Columbia taxes businesses at just 2.5 per cent. Since 2002, this $500,000 threshold has allowed businesses to pay less tax on a larger amount of income.

Tax Credits and Exemptions

Along with affordable base rates, we offer tax credits and exemptions to many industries. These include research and development, mining exploration, oil and natural gas production, film and TV production, interactive digital media, and international business.

British Columbia does not levy provincial payroll, franchise or capital taxes. We also have no provincial sales tax on most production machinery and equipment.
 

Effective Corporate Income Tax Rates

  Manufacturing Digital (2-sector average) R&D Corporate Services
British Columbia 15.2% 12.6% 0.0%* 20.9%
San Diego, California 29.4% 31.7% 18.4% 35.6%
Portland, Oregon 29.1% 36.6% 21.4% 41.3%
Seattle, Washington 24.7% 31.5% 18.2% 34.6%

Source: KPMG, Competitive Alternatives - Special Report: Focus on Tax, 2014
* R&D tax credits eliminate all income tax liabilities.

 

Personal Income Tax

British Columbia has the lowest provincial personal income taxes in Canada for people earning up to $122,000.