B.C. Basic Personal Income Tax Credits

You can reduce the amount of B.C. personal income tax you owe with basic tax credits. However, if the total of these credits is more than the amount you owe, you won't get a refund of the difference. These are called non-refundable credits.

B.C. basic tax credits are calculated by multiplying the base amount by the lowest rate in effect for the year. For the current income tax brackets and rates, see our Tax Rates page.

Budget 2018 replaced the Infirm Dependant and In-Home Care of Relative Tax Credits with a new B.C. Caregiver Tax Credit effective for 2018 and subsequent tax years.

Budget 2018 also eliminated the Education Tax Credit for the 2019 and subsequent tax years. Unused tuition and education amounts from years prior to 2019 remain available to be claimed in 2019 and subsequent tax years.

2018 and 2017 B.C. Basic Tax Credits

Credit

Base Amount
2018

Base Amount
2017

Indexed

Personal Credits

 

 

 

Basic Personal Amount

$10,412

$10,208

yes

Spousal
Reduce when spousal income exceeds

$8,915
$892

$8,740
$874

yes

Eligible Dependant
Reduced when dependant income exceeds

$8,915
$892

$8,740
$874

yes

B.C. Caregiver Credit

Reduced when dependant income exceeds

$4,556

$15,419

-

-

yes

Infirm Dependant Credit
Reduced when dependant income exceeds

-
-

$4,467
$7,115

yes

In-home Care of Relative
Reduced when relative's income exceeds

-
-

$4,467
$15,117

yes

Age (65 or older by end of tax year)
Reduced when income exceeds

$4,669
$34,757

$4,578
$34,075

yes

Pension Credit

$1,000

$1,000

no

Adoption Expense Credit
(based on federal indexed maximum amount)

Actual
(to a maximum of
$15,905)

Actual
(to a maximum of $15,670)

no

Child Fitness Credit
The maximum is increased to $1,000 if the child is eligible for the disability tax credit

-

Actual
(to a maximum of
$500 per child)

no

Child Fitness Equipment Credit

-

Child fitness credit claimed x 50%

no

Child Arts Credit
The maximum is increased to $1,000 if the child is eligible for the disability tax credit

-

Actual
(to a maximum of
$500 per child)

no

Volunteer Firefighters and Search and Rescue Volunteers

$3,000

$3,000

no

Charitable and Other Gifts
Lowest tax rate on first $200; 16.80% tax rate on excess for 2018, 14.70% tax rate on excess for 2017

Actual

Actual

no

Medical Expense Credit
Reduced by lesser of 3% of net income or
$2,165 (2018) or $2,122 (2017)

Actual

Actual

yes

Credit for Mental or Physical Impairment

$7,809

$7,656

yes

Credit for Mental or Physical Impairment for child under 18
Reduced by attendant care and child care expenses in excess of

$4,556
$2,645

$4,467
$2,593

yes

Tuition Credit

Actual

Actual

no

Education
Full-time student
Part-time student


$200/month
$60/month


$200/month
$60/month

no

Student Loan Interest

Actual

Actual

no

EI and CPP Credit

Actual

Actual

no

Education Coaching Credit

-

$500

no

Indexed Tax Credit

If a credit is indexed that means the credit is adjusted each year by the Consumer Price Index for B.C. (BC CPI) for the 12-month period ended on September 30 of the previous year. The BC CPI used to calculate 2017 amounts was 1.8% and 2.0% for 2018.

Other Tax Credits

B.C. Tax Reduction Credit

The B.C. tax reduction credit is a non-refundable tax credit for individuals who have a net income below a certain amount.

The maximum tax reduction credit is available to individuals who have a net income below the threshold amount for a tax year, and is reduced by a percentage of an individual's net income over the threshold amount.  The tax reduction credit will be zero once the maximum net income is reached.

For the 2018 tax year, the net income threshold has increased to $20,144 and the reduction factor is 3.56%. The threshold amount will be indexed for 2019 and subsequent tax years.

Credit Base Amount
2018
Base Amount
2017
Indexed

B.C. Tax Reduction Credit
Net Income Threshold
Reduction Factor
Maximum Net Income

$453
$20,144
3.56%
$32,869
$444
$19,749
3.56%
$32,221
yes


 

Dividend Tax Credit

Dividends received from taxable Canadian corporations qualify for a B.C. dividend tax credit. The tax credit rate depends on what year you received the dividend and the type of dividend you received.

For the 2016 and subsequent tax years, the tax credit rate on the taxable amount of eligible dividends is 10%. Effective January 1, 2019, the tax credit rate on these dividends will be 12%.

For the 2017 tax year, the tax credit rate on the taxable amount of other than eligible dividends is 2.18%. For the 2018 and subsequent tax years, the tax credit rate on the taxable amount of other than eligible dividends is decreased from 2.18% to 2.07%.

  • For more information on how to report dividends and claim dividend tax credits, see Line 120 of the T1 Income Tax Return guide

Foreign Tax Credit

If your federal foreign tax credit on non-business income is less than the related tax you paid to a foreign country, you may be eligible to claim a provincial foreign tax credit.

To claim the credit, complete the Provincial or Territorial Foreign Tax Credit form (T2036) and enter the amount you are claiming on the British Columbia Tax form (BC428).

Minimum Tax Credit

If you're eligible to claim a minimum tax credit under the federal Income Tax Act, you may also claim a B.C. minimum tax credit. The B.C. minimum tax credit is calculated as a percentage of your federal minimum tax credit and is currently 33.7%.

Special rules may apply if you are not a B.C. resident or if you have income earned outside the province.

Tuition and Education Credits

If you have unused tuition and education credits, you may transfer these credits to your spouse or common-law partner, or to a parent or grandparent. You can also carry forward unused amounts to claim in a future year.

Transfer of Credits

If you're unable to use the age, pension or disability credits, these credits may be transferred to your spouse or common-law partner.

Claiming B.C. Tax Credits

You claim the B.C. basic and other tax credits when you file your T1 Income Tax Return using the British Columbia Tax form (BC428). You may need to complete the Provincial Worksheet to calculate the amounts to enter on Form BC 428; however, the worksheet is for your records and doesn't need to be attached to your tax return.