--- title: "BC Corporate Tax Rates: 2% Small Business, 12% General" url: https://www.everstonecpa.com/bc-tax-facts description: "B.C. tax facts: corporate rates, PST, employer health tax and workers compensation in four tables. Check where the small business limit starts to vanish." type: service-or-info updated: 2026-10-05 summary: "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." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [British Columbia](https://www.everstonecpa.com/accountant-british-columbia) Tax facts Reference tables · British Columbia # British Columbia corporate tax rates and facts Updated 5 October 2026 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. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **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. Which provincial levies exist in BC — and which do not. Corporate income tax ## 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](https://www.everstonecpa.com/glossary#sbd) and 15% on everything else. British Columbia corporate income tax rates — 2026 tax year | 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](https://www.everstonecpa.com/investment-income-and-capital-gains) earned inside the corporation can grind the limit down before you reach it. Sales tax ## 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](https://www.everstonecpa.com/tax-update/tax-brackets-2026). Sales tax in British Columbia — rates in effect July 2026 | 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. Payroll ## 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. BC employer health tax bands — 2026 calendar year | 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. Corporate registry ## The provincial filing that is not a tax return BC corporate registry obligations — current July 2026 | 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. [Corporate tax hub](https://www.everstonecpa.com/corporate-tax-hub)[Corporate tax estimator](https://www.everstonecpa.com/corporate-tax-estimator) Common questions ## British Columbia tax facts FAQ **What is the combined corporate tax rate in British Columbia?** 11% on active business income eligible for the small business deduction (9% federal plus 2% provincial) and 27% on general income (15% federal plus 12% provincial), per the CRA corporation tax rates table. [Ask about your case →](https://www.everstonecpa.com/quick-question) **What is BC’s small business limit?** $500,000. British Columbia uses the federal business limit rather than setting its own, so the provincial and federal thresholds line up. The limit is shared among associated corporations. **Does British Columbia charge HST?** No. BC charges 5% GST administered federally and 7% PST administered by the province, as two separate registrations with separate returns. PST paid on business inputs is generally a cost rather than a recoverable credit. **When does a BC business start paying employer health tax?** Once annual BC remuneration exceeds $1,000,000. Between $1,000,000.01 and $1,500,000 the tax is 5.85% of the excess over $1,000,000; above $1,500,000 it is 1.95% of total BC remuneration with no exemption. **Who administers workers’ compensation in British Columbia?** WorkSafeBC. Registration, premium classification and clearance letters all run through WorkSafeBC and are separate from your CRA and provincial tax accounts. **What annual filing does a BC corporation owe the province?** An annual report to BC Registries and Online Services, due within two months of the anniversary of incorporation. Financial statements are not filed with it — they stay at the registered office. **How current are these BC tax figures?** Every rate and threshold here was confirmed against the CRA and Province of British Columbia sources named beneath each table on 31 July 2026. Rates change; confirm anything that drives a decision, and treat this as general information rather than advice. ## Related reading Keep up with what changed this year. [Accountant in Victoria](https://www.everstonecpa.com/accountant-victoria) [A PREC Accountant for British Columbia Realtors](https://www.everstonecpa.com/prec-accountant-bc) [Truck driver meal claims: the simplified method, the 80% rate and the logbook](https://www.everstonecpa.com/blog/trucking-per-diem-meal-claims-canada) [Capital gains inclusion rate: still one-half — the proposed increase was cancelled and never took effect](https://www.everstonecpa.com/tax-update/capital-gains-inclusion-rate) [New Corporation Setup Checklist A free checklist for a new Canadian corporation’s first ninety days, in dependency order: registration, CRA accounts, banking, books and deadlines.](https://www.everstonecpa.com/new-corporation-setup-checklist) [Direct deposit and CRA online mail: setting both up for your corporation](https://www.everstonecpa.com/blog/direct-deposit-and-cra-online-mail-business) [Underused Housing Tax: why corporations get caught](https://www.everstonecpa.com/blog/underused-housing-tax-canada-corporations) [Recent Canadian tax updates](https://www.everstonecpa.com/tax-updates) [Bringing your corporation to BC](https://www.everstonecpa.com/moving-corporation-to-bc) [WorkSafeBC registration](https://www.everstonecpa.com/blog/workers-compensation-registration-bc) ## 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](https://www.everstonecpa.com/accountant-abbotsford), [Chilliwack](https://www.everstonecpa.com/accountant-chilliwack), [Mission](https://www.everstonecpa.com/accountant-mission), [Langley](https://www.everstonecpa.com/accountant-langley), [Surrey](https://www.everstonecpa.com/accountant-surrey), [Maple Ridge](https://www.everstonecpa.com/accountant-maple-ridge), [Aldergrove](https://www.everstonecpa.com/accountant-aldergrove), [Vancouver](https://www.everstonecpa.com/accountant-vancouver), [Victoria](https://www.everstonecpa.com/accountant-victoria), [Kelowna](https://www.everstonecpa.com/accountant-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)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html) - [CRA — GST/HST rates by province](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html) - [Province of BC — Employer health tax](https://www2.gov.bc.ca/gov/content/taxes/employer-health-tax) General information, not advice. [Have a CPA confirm it for your situation](https://www.everstonecpa.com/book-online) --- Source: https://www.everstonecpa.com/bc-tax-facts Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online