2025-2026 British Columbia Income Tax Calculator

Yes! You can input your RRSP and FHSA contribution amounts, and the calculator will adjust your taxable income accordingly. RRSP contributions lower your taxable income, potentially resulting in a larger refund or smaller amount owing. Similarly, FHSA contributions are deductible, giving you additional tax savings if you are saving for your first home.

Absolutely. Enter your self-employment income in the designated field. The calculator includes both self-employment income and traditional employment income in determining your total tax liability. However, it doesn’t automatically deduct business expenses, so make sure you calculate your net self-employment income (after expenses) before entering it.

When entering capital gains, remember that only 50% of your capital gains are taxable in Canada. The calculator applies this rule automatically. It will add the taxable portion of your capital gains to your total income, which then affects your overall tax owed at your marginal tax rate.

Eligible dividends receive a gross-up and dividend tax credit, which the calculator accounts for. This treatment often results in a lower effective tax rate on dividend income compared to regular employment income. If you receive dividends from Canadian corporations, ensure you select “eligible” dividends to see the correct calculation.

Yes, the calculator breaks down your total taxes into federal tax and British Columbia provincial tax. You’ll also see your contributions to CPP (Canada Pension Plan) and EI (Employment Insurance) premiums if applicable, giving you a detailed and comprehensive overview.

Yes. If you enter your income taxes already paid (for example, taxes withheld from your paycheque) into the “Income Taxes Paid” section, the calculator can estimate whether you’ll owe additional taxes or receive a refund.

The marginal tax rate represents the percentage of tax you pay on your next dollar of income. It’s crucial to understand your marginal tax rate because it affects decisions like whether to contribute more to your RRSP. Our calculator displays this rate alongside your average tax rate.

Definitely. If you’re planning to sell investments, contribute to RRSPs or FHSAs, or want to estimate the after-tax value of dividends or capital gains, this tool provides valuable insights. Knowing your expected tax bracket helps with smart investment decisions.

While the calculator includes fields for common deductions (RRSP, FHSA, capital gains adjustments), it may not include specific deductions like childcare expenses, moving costs, or medical expenses. If you have many special deductions, consult a tax professional or CRA-approved software for the final filing.

We update the calculator annually — or sooner if there are mid-year tax policy changes announced by the federal or BC government. Our goal is to ensure that your estimates always use the latest available information.