BC Basic Personal Amount

Definition

The BC basic personal amount (BPA) is a non-refundable tax credit available to every individual who is resident in British Columbia for tax purposes on December 31 of the year. It ensures that the first tranche of income is effectively not subject to BC provincial income tax. The credit operates by multiplying the BPA by the lowest BC tax rate (5.06%) and subtracting the result from BC tax otherwise payable.

Key rules

• The BPA for 2025 was $12,580 (after BC indexation). For 2026, the amount is approximately $12,932 after applying the BC indexation factor; confirm the final figure on the BC428 form published by the Ministry with the 2026 T1 package.
• The federal basic personal amount (approximately $16,129 for 2025, rising with indexation and phase-out at higher incomes) is separate and reduces federal tax only.
• The BC BPA is a flat amount and is not phased out at higher incomes (unlike the federal BPA, which phases from a higher to a lower amount for taxpayers in the top federal bracket).
• The credit rate is 5.06% (the lowest BC bracket rate). The maximum BC tax relief from the BPA for 2026 is therefore approximately $12,932 × 5.06% = $654.
• The BPA is claimed on BC428, line 58040 equivalent, alongside other non-refundable credits (age amount, disability amount, spouse or common-law partner amount, CPP and EI premium credits).

Example

A BC resident with 2026 taxable income of $60,000 calculates BC tax as follows (simplified):

1. Tax in bracket 1 ($0 to $49,279) at 5.06%: $2,493.52
2. Tax in bracket 2 ($49,279 to $60,000, being $10,721) at 7.70%: $825.52
3. BC tax before credits: $3,319.04
4. Less BPA credit ($12,932 × 5.06% = $654.36): -$654.36
5. BC tax payable: $2,664.68

The same taxpayer claims the federal BPA on their federal T1 calculation. The two credits are independent and both must be applied to reduce BC tax and federal tax separately.

Common mistakes

• Assuming the BC BPA equals the federal BPA. The two are different amounts with different indexation paths.
• Claiming the BPA as a deduction (which would reduce taxable income and provide tax relief at the taxpayer's marginal rate). It is a credit at the lowest bracket rate of 5.06% only.
• Forgetting to pro-rate the BPA for individuals who became resident in BC or emigrated partway through the year (CRA's standard part-year resident rules apply).
• Using a prior-year BPA figure. Indexation changes the amount annually.

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