British Columbians were the first Canadians that have to pay provincial income tax. Canadian personal income tax has since grown into a complex, ever changing set of rules that leaves many confused and with penalties.
British Columbia’s filing deadline for provincial taxes falls at the same time as their federal taxes. The deadline for filing taxes is April 30th for those who have a balance owing. If you, your spouse or common-law partner ran a business in during the tax year your filing deadline is June 15th.
For 2016 the tax brackets for British Columbias person income:
– 5.06 per cent tax on the first $38,210 of taxable income
– 7.7 per cent on income above $38,210 up to $76,421
– 10.5 per cent on income between $76,421.01 to $87,741
– 12.29 per cent on the amount of taxable income between $87,741.01 to $106,543
– Income over $106,543 will be taxed at a rate of 14.7 per cent
Here are some recently introduced British Columbia tax credits:
Tax credits can change from year to year, given the province’s economy and political climate.
Here are are some new credits for the 2016 tax year.
– Home renovation tax credit for seniors and persons with disabilities Since 2012, seniors have been offered a credit for home renovations that help with mobility and access. The credit has now been extended to people with disabilities.
– Back to school tax credit: parents of school-aged children (aged 4 to 16) can receive a $250 credit to help cover the cost of school supplies.
– B.C. Education Coaching: Teachers and teaching assistants who carry at least 10 unpaid hours of extracurricular coaching activity can receive a $500 credit.
– Farmers’ Food Donation: Designed to encourage farmers to donate agricultural products to registered charities, eligible businesses can receive a credit of 25 per cent of the eligible amount of their gift.
On Feb. 11, the B.C. government announced a proposed tax credit for volunteer firefighters and search-and-rescue crew members. If approved, the credit would be applicable for the 2017 tax year.