Tax Flash Bulletin
BC Budget Highlights
On February 22, 2022, British Columbia’s Minister of Finance, Selina Robinson, tabled the province’s budget for the 2022-2023 fiscal year. The minister forecasts a $5.5 billion deficit for the 2022-2023 fiscal year and $4.2 billion for 2023-2024. The minister updated the forecast for the current 2021-2022 fiscal year to end with a deficit of $483 million in comparison to the $9.7 billion deficit estimated in the prior year’s budget. We have highlighted select budget measures relevant to individuals and small businesses in British Columbia.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to personal income tax rates. The taxable income figures below reflect BC’s indexed income brackets for 2021 and 2022. Provincial Income Tax Brackets and Tax Rates
| 2021 Taxable Income | 2022 Taxable Income | Rate |
|---|---|---|
| $0 to $42,184 | $0 to $43,070 | 5.06% |
| $42,184 to $84,369 | $43,070 to $86,141 | 7.70% |
| $84,369 to $96,866 | $86,141 to $98,901 | 10.50% |
| $96,866 to $117,623 | $98,901 to $120,094 | 12.29% |
| $117,623 to $159,483 | $120,094 to $162,832 | 14.70% |
| $159,483 to $222,420 | $162,832 to $227,091 | 16.80% |
| Over $222,420 | Over $227,091 | 20.50% |
Top Combined BC and Federal Rates
| Income Type | 2021 | 2022 |
|---|---|---|
| Salary, interest, pension, foreign | 53.50% | 53.50% |
| Eligible dividends | 36.54% | 36.54% |
| Non-eligible dividends | 48.89% | 48.89% |
| Capital gains | 26.75% | 26.75% |
Top rates apply to taxable income over $227,091 and $222,420 (2021) based on known federal and BC rates at February 22, 2022.
Extension to Training Tax Credits (BC Form T1014)
The budget extends the existing training tax credit for another two years to December 31, 2024. The training tax credit is for apprentices and employers who take part in eligible apprenticeship programs administered through the British Columbia Industry Training Authority. Apprentices can claim up to a total of $6,500 in training tax credits after completing certain levels of training programs. First Nations individuals and persons with disabilities are eligible for an enhanced credit claim up to $9,750.