British Columbians are starting 2025 with several key tax updates designed to address affordability, support targeted industries, and ensure fairness across the province. Here’s a breakdown of what’s changing and how it impacts you.
Outlet
Personal income tax adjustments
Income tax brackets in B.C. have been indexed by 2.8% to keep pace with inflation. This adjustment ensures that more of your earnings stay in your pocket without pushing you into a higher tax bracket due to inflation.
Example:
The first tax bracket for 2025 covers incomes up to $45,890 (up from $44,938 in 2024).
The highest marginal rate (20.5%) now applies to income above $240,718 (up from $234,390).
Home-flipping tax
Effective October 8, 2024, the following changes have been implemented:
A new anti-flipping tax targets homes sold within two years of purchase, aiming to reduce speculative buying. Exceptions apply for life events like job relocation, death, or divorce.
This tax aligns with federal anti-flipping rules introduced in 2023 to cool real estate speculation and prioritize housing for residents.
Training tax credits extended
The Apprenticeship Training Tax Credit, designed to support individuals pursuing trades, has been extended through 2026.
Credits range from $1,500 to $2,000 for eligible apprentices.
Additional support is available for underrepresented groups, such as women in trades.
Shipbuilding and repair tax credit
The Shipbuilding and Repair Industry Tax Credit has been extended for two more years. This measure supports coastal industries by encouraging employers to hire apprentices and invest in advanced technologies.
Climate-related incentives
Rebates for electric vehicle (EV) purchases and home energy retrofits continue as part of the CleanBC initiative. These incentives aim to encourage sustainability and lower greenhouse gas emissions.
Up to $4,000 for eligible EV purchases.
Up to $5,000 for home upgrades like heat pumps and insulation.
Everyone might not agree on taxation. What do you think?
Get the latest news and stories delivered to your inbox.
There are some who won’t like BC’s new house flipping tax. For too long house flippers have driven up prices, putting homes out of reach for BC families. It’s time to crack down on house flipping because homes are for people to live in. Learn more: StrongerBC.gov.bc.ca/Housing
Ridiculous. We are not being "taxed left, right, and centre". BC has the lowest marginal tax rate for incomes up to $75k and the 3rd lowest for incomes up to $150k.
British Columbians are getting taxed left, right, and centre but this NDP government has nothing to show for it in terms of any meaningful services or infrastructure for British Columbians. #bcpoli
