British Columbia corporate tax rates and facts
Updated
The provincial numbers a BC corporation actually needs in one place: corporate income tax rates, the GST-plus-PST position, the employer health tax bands, the workers’ compensation authority and the registry filing. Sourced, dated and kept to the figures.
Quick answer: British Columbia taxes small-business corporate income at 2% provincially and general income at 12%, on a $500,000 business limit. The province charges 7% PST alongside the 5% federal GST, and employers pay BC employer health tax once annual BC remuneration exceeds $1,000,000.
BC corporate rates, combined with the federal rate
A BC corporation pays two layers of income tax on the same profit: the federal rate and the provincial rate. The combined figure is what matters when you are deciding whether to leave earnings in the company. The federal net rate is 9% on income eligible for the small business deduction and 15% on everything else.
| Measure | Provincial | Federal | Combined |
|---|---|---|---|
| Small-business rate | 2% | 9% | 11% |
| General rate | 12% | 15% | 27% |
| Business limit | $500,000 (BC uses the federal business limit) | ||
Provincial rates and business limit per the Canada Revenue Agency Corporation tax rates table; federal net rates from the same page. Retrieved 31 July 2026.
The 16-point spread between 11% and 27% is the whole reason the business limit is worth watching. It is shared across an associated group, so a second or third company does not buy a second $500,000, and investment income earned inside the corporation can grind the limit down before you reach it.
BC runs GST and PST as two separate systems
British Columbia is not an HST province: a BC business can hold two sales-tax registrations and file two returns on two schedules. GST is broad and recoverable through input tax credits; PST is narrower, covers mainly goods and listed services, and is generally not recoverable. BC raised its lowest personal rate for 2026. See the federal and BC brackets, and the mid-year payroll change that came with it.
| Tax | Rate | Administered by |
|---|---|---|
| GST | 5% | Canada Revenue Agency |
| PST | 7% | BC Ministry of Finance |
| HST | Not applicable | — |
Rates per the Canada Revenue Agency GST/HST rates by province table. Retrieved 31 July 2026.
Employer health tax and workers’ compensation
Beyond CPP and EI, a BC employer has two provincial payroll costs. Employer health tax is self-assessed on BC remuneration; WorkSafeBC premiums are set by classification unit and assessed on assessable payroll.
| Annual BC remuneration | Employer health tax |
|---|---|
| $1,000,000 or less | Exempt |
| $1,000,000.01 to $1,500,000 | 5.85% × (BC remuneration − $1,000,000) |
| Over $1,500,000 | 1.95% × total BC remuneration (no exemption) |
Per the Province of British Columbia Employer health tax overview. Associated employers share the $1,000,000 exemption. Retrieved 31 July 2026.
The middle band surprises people. Between $1,000,000 and $1,500,000 the next payroll dollar costs 5.85%, not 1.95%, because the notch rate phases the exemption out. Workplace coverage is administered separately by WorkSafeBC, with its own registration, reporting and clearance letters.
The provincial filing that is not a tax return
| Item | British Columbia |
|---|---|
| Registry | BC Registries and Online Services |
| Annual filing | Annual report |
| Due | Within 2 months of the anniversary of incorporation, amalgamation, continuation or extraprovincial registration |
| Financial statements filed? | No — kept at the registered office |
| Workers’ compensation | WorkSafeBC |
Per the Province of British Columbia Incorporated companies guidance. Retrieved 31 July 2026.
This filing is easy to miss precisely because it is not a tax return and no one at the CRA chases it. A company that stops filing annual reports can eventually be struck from the register, which is a problem the moment a lender, insurer or buyer asks for proof of good standing.
Compare with other provinces
Same tables, different province.
British Columbia tax facts FAQ
What is the combined corporate tax rate in British Columbia?+
What is BC’s small business limit?+
Does British Columbia charge HST?+
When does a BC business start paying employer health tax?+
Who administers workers’ compensation in British Columbia?+
What annual filing does a BC corporation owe the province?+
How current are these BC tax figures?+
Related reading
Keep up with what changed this year.
Accountants in British Columbia cities
These rates apply to every city page below; each one covers the local side of the work.
- British Columbia: Abbotsford, Chilliwack, Mission, Langley, Surrey, Maple Ridge, Aldergrove, Vancouver, Victoria, Kelowna
Sources
Every rate and threshold on this page comes from the following. Rates change — check the source before relying on a figure.
- CRA — Corporation tax rates (federal and provincial)
- CRA — GST/HST rates by province
- Province of BC — Employer health tax
General information, not advice. Have a CPA confirm it for your situation