How it works
A British Columbia pay stub has federal tax, BC tax, CPP and EI taken off. The calculator follows the CRA T4127 Payroll Deductions Formulas (2026 edition): it takes your gross pay for one period, subtracts RRSP contributions made through payroll and union dues, projects that amount over the year, works out annual federal and BC tax, subtracts the credits from your TD1 and TD1BC claim amounts, and divides the result back into one pay. BC income tax is collected by the CRA with federal tax, so both come off the same pay stub and are settled on one return.
Federal tax. Federal brackets run from 14% on the first $58,523 of taxable income up to 33% above $258,482, with the basic personal amount of $16,452 and the Canada employment amount of $1,501 as credits (CRA T4127, 2026).
BC tax. British Columbia has its own brackets, from 5.6% on the first $50,363 of taxable income up to 20.5% above $265,545, and its own basic personal amount of $13,216 (CRA T4127, 2026). The number of BC brackets and their thresholds are set each year; the calculator uses the 2026 table.
BC tax reduction. Lower incomes get a BC tax reduction of up to $805. It is reduced by 3.56% of net income above $25,570 and reaches zero at higher pay (CRA T4127, 2026). The calculator applies it inside the BC tax line.
CPP. Employees pay 5.95% on earnings between the basic exemption of $3,500 and the YMPE of $74,600, and CPP2 of 4% on earnings between $74,600 and the YAMPE of $85,000 (CRA, CPP contribution rates, maximums and exemptions, 2026).
EI. Employment Insurance premiums are 1.63% of insurable earnings up to $68,900 for the year (Employment and Social Development Canada / CRA, 2026).
Not included: employer contributions (CPP and EI matching, and the BC Employer Health Tax, which employers pay and is not taken from your pay), taxable benefits, bonuses, commissions, vacation pay paid out separately, credits claimed only on your return, and any refund or balance owing when you file. Your employer's payroll may round differently.
Worked example
Take a $70,000 salary paid biweekly in British Columbia, with the default TD1 and TD1BC claim amounts and no RRSP or union dues. Gross pay is $70,000 divided by 26 pays, which is $2,692.31. Federal tax is $279.93 and BC tax is $133.47; at this pay the BC tax reduction is $0.00 for the year. CPP is $152.18 and CPP2 is $0.00, since CPP2 applies only to earnings above the YMPE of $74,600. EI is $43.88. Net pay is $2,082.85 per pay, or $54,171.81 over the year's 26 pays (CRA T4127, 2026).
Frequently asked questions
How much tax do I pay on $80,000 in BC?
It depends on your TD1 claim amounts and deductions. Enter 80,000 in the calculator to see federal tax, BC tax, CPP and EI for 2026, worked out with the CRA T4127 formulas (2026).
What are the BC tax brackets for 2026?
BC tax starts at 5.6% on the first $50,363 of taxable income and reaches 20.5% above $265,545 (CRA T4127, 2026). The calculator applies every 2026 bracket in between.
What is the BC tax reduction?
It is a reduction of up to $805 of BC tax for lower incomes, phased out by 3.56% of net income above $25,570 (CRA T4127, 2026). Payroll applies it across the year's pays.
Is BC tax higher than in Alberta or Ontario?
It depends on the salary, since each province has different brackets, basic personal amounts and reductions. Use "Compare two scenarios" to see the same pay in British Columbia and Alberta or Ontario side by side.
Why is my BC pay stub different from this estimate?
Common reasons are benefits, a workplace pension plan, TD1 or TD1BC claim amounts other than the basic ones, or CPP and EI stopping after the yearly maximum. Enter your TD1 totals, and open "More deductions" for RRSP or union dues, to match your pay stub more closely.