B.C. changes basic personal tax amount

Summary#

This bill would change the definition of the “basic personal amount” in B.C.’s Income Tax Act. The basic personal amount is the income you can earn before paying any provincial income tax. The bill’s exact change is not shown in the text provided. It would take effect on a date set by the provincial cabinet (Lieutenant Governor in Council).

• Updates how “basic personal amount” is defined for B.C. income tax.
• Exact new amount or formula: No publicly available information.
• Start date will be set by regulation, not fixed in the bill.
• Could change how much provincial income tax most people pay.
• May require updates to payroll withholding and tax forms.

What it means for you#

• Individuals and families

  • A change to the basic personal amount would change your provincial income tax. If it goes up, most people would pay a bit less tax; if it goes down, most would pay more.
  • Your take‑home pay during the year could change if payroll withholding tables are updated.
  • Your refund or balance due at tax time could change.

• Low‑income residents

  • If the basic personal amount increases, some very low‑income filers may owe no provincial income tax.
  • People who do not file taxes or owe no tax would see little or no direct benefit from this change alone.

• Employers and payroll providers

  • You would need to update payroll systems and tax credit amounts once the new rules take effect.

• Tax preparers and software vendors

  • You would need to update software and guidance for clients to reflect the new definition and start date.

Expenses#

No publicly available information.

Proponents' View#

• Raising the basic personal amount lets people keep more of their pay, helping with rising living costs.
• It is simple to deliver through the existing tax system and shows up in take‑home pay.
• It treats taxpayers consistently and avoids complex new programs.
• Adjusting the tax‑free amount can provide quick relief without new paperwork.

Opponents' View#

• Changing the basic personal amount could reduce provincial revenue and pressure funding for health care, education, and other services.
• Benefits may be larger for higher‑income taxpayers who owe more tax, while people with very low incomes or non‑filers may see little help.
• Tying tax changes to grocery costs is indirect; it does not address food prices or market practices.
• The bill text does not show the new amount or formula, making the true cost and impact unclear.