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BC Tax Info

Calculation of British Columbia Tax​

The following explanation simplifies the calculation of the tax by displaying only the final result of the Net Income.

For an employee​

Net Income = Taxable Income - Federal Tax - British Columbia Tax - CPP - EI

For self-employed workers​

The same calculation must be made for the self-employed worker. Individuals are resident in the CPP. The self-employed must pay more than an employee.

Formula for Calculating Net Salary In BC​

The annual net income is calculated by subtracting the amounts related to the tax (Canada Tax and British Columbia Tax), the Canadian Pension Plan, the Employment Insurance.

Gross annual income - Taxes - CPP - EI = Net annual salary

Net annual salary / Weeks of work per year = Net weekly income

Net weekly income / Hours of work per week = Net hourly wage

CPP calculation​

For and employee or employer

CPP contribution = (The smallest number between: Gross revenue and: Year's maximum pensionable earnings YMPE in 2021 - Basic exemption) x (Employee or Employer rate / 100)

Frequency Or Periods Of Payment​

In British Columbia, the frequency or pay cycle is usually every 2 weeks. However, it is quite possible that you need to know the other pay periods that may be following them (based on an entire year of 52 weeks):

Annual (year-round, only once a year) Monthly (a month, 12 periods per year) Semimonthly (2 x per month, 24 periods per year) Biweekly (every 2 weeks, 26 periods a year) weekly (once per week, 52 periods a year) Schedule (per hour, 52 weeks x number of hours per week)