Tax Flash Bulletin

2023 B.C. Budget Highlights

On February 28, 2023, British Columbia’s new Minister of Finance, Katrine Conroy, tabled the province’s budget for the 2023-2024 fiscal year. We have highlighted selected tax measures relevant to individuals and small businesses in British Columbia.


Personal Tax Rates

The budget did not propose any changes to personal income tax rates. The tax brackets continue to be indexed.

2022 Taxable Income 2023 Taxable Income Rate
$0 to $43,070 $0 to $45,654 5.06%
$43,070 to $86,141 $45,654 to $91,310 7.70%
$86,141 to $98,901 $91,310 to $104,835 10.50%
$98,901 to $120,094 $104,835 to $127,299 12.29%
$120,094 to $162,832 $127,299 to $172,602 14.70%
$162,832 to $227,091 $172,602 to $240,716 16.80%
Over $222,091 Over $240,716 20.50%

Top Combined BC and Federal Rates

Income Type 2022 2023
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 $240,716 and $227,091 (2022) based on known federal and B.C. rates at February 28, 2023.

Introduction of Renter’s Tax Credit

  • Maximum $400 refundable tax credit for B.C. resident renters aged 19 and over
  • Households with adjusted income of less than $60,000 can claim the full $400 tax credit
  • A partial credit is available when income is between $60,000 to $80,000
  • Rent must be paid to unrelated persons
  • Effective January 1, 2023

Permanent Increase to B.C. Family Benefit

Annual B.C. Family Benefit Maximum Benefit
Family Income < $27,345
Minimum Benefit
Family Income < $87,533
First child $1,750 $775
Second child $1,150 $750
Each Additonal child $900 $725
  • An additional $500 maximum annual supplement will be provided to single parent families
  • Both measures effective July 1, 2023

Increase to Climate Action Tax Credit

Maximum Annual Climate Action Tax Credit Prior As of July 1, 2023
Adult $193.50 $447.00
Spouse or common-law partner
$193.50 $223.50
Each Child $56.50 $111.50
  • Single parents will continue to receive the spouse/partner amount for the first child in the family
  • Effective July 1, 2023

Other Income Tax Measures

  • Extension of the farmers’ food donation tax credit to December 31, 2026
  • Extension of the interactive digital media tax credit to August 31, 2028

Consumer and Other Taxes

  • Carbon tax rates increase by $15, from $50 to $65 per tonne annually until reaching $170 per tonne in 2030, effective April 1, 2023
  • Increase to property tax of up to $0.03/$1,000 of assessed value for policing to recover 33 per cent of legislated costs after policy-based reductions, applicable to rural areas and municipalities with populations below 5,000
  • Purchases of new purpose-built rental buildings will be exempt from the additional two per cent property transfer tax for transactions exceeding $3 million, effective January 1, 2024
  • New PST exemption for automated external defibrillators (AEDs), effective March 1, 2023
  • Revisions to online marketplace tax collection rules
    • Services taxable when an online marketplace facilitator provides the service to facilitate the sale or provision of non-taxable services
    • Rules amended to align with the place-of-supply rules used for the federal GST
  • Qualifying greenhouse growers can claim a point-of-sale reduced carbon tax for purchases of natural gas and propane used for heating and generating CO2 for increased crop productivity, effective April 1, 2023


Corporate Tax Rates

The budget did not propose any changes to corporate income tax rates and it did not change the $500,000 provincial small business income threshold. The calendar year rates below reflect a December 31st year end.

Income Type B.C. Rate Federal Rate Combined Rates Calendar 2023
General corporate  12.00% 15.00% 27.00%
Small business  2.00% 9.00% 11.00%
CCPC* investment 12.00% 38.67% 50.67%
Non-CCPC investment 12.00% 15.00% 27.00%
Manufacturing and processing income 12.00% 15.00%  27.00%

Based on known federal and B.C. rates at February 28, 2023
*Canadian Controlled Private Corporation

Reference further details on the 2023 B.C. Budget here.


This has been prepared by the Professional Wealth Advisory Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member - Canadian Investor Protection Fund.