BC Finance Minister Michael de Jong delivered the province’s 2017 budget on Feb. 21, 2017. The budget anticipates a surplus of $295 million for the current year, $244 million in 2018-2019 and $223 million in 2019-2020.
Reduction in Corporate income Tax Rate from 2.5% to 2.0% effective April 1, 2017
| Corporate Income Tax Rates- As of January 1, 2017 | ||
| British Columbia | Combined Federal & BC | |
| General | 11% | 28% |
| M&P | 11% | 26% |
| Small Business* | 2.5%/2.0%** | 13.0%/12.5%** |
| *on first $500,000 of active business income **effective April 1, 2017 | ||
Increase in the personal tax rate from 40.61% to 40.95% for ineligible dividends effective January 1, 2017.
| Personal Combined Federal/Provincial Top Marginal Rates | ||
| 2017 | ||
| Interest and regular income | 47.70% | |
| Capital gains | 23.85% | |
| Eligible dividends | 31.30% | |
| Non-eligible dividends | 40.95% | |
Medical Services Plan Premiums: Rate will remain at $75/month/adult. Effective Jan 1, 2018: 50% MSP premium reduction for households with annual net incomes up to $120,000.
Firefighter & Search & Rescue Volunteer Tax Credit: Non-refundable tax credit of up to $3,000 for 2017.
Back to School Tax Credit: Non-refundable tax credit of $250 per child (ages 5 to 17) for 2016 to 2018. Effective Jan 1, 2018, the education tax credit will be eliminated.
Electricity- Provincial Sales Tax Act: Effective Oct 1, 2017, the tax rate is reduced to 3.5% of the purchase price.
Property transfer tax: For first time home buyers to save property transfer tax on the purchase of their property the partial exemption has been increased to $500,000 from $475,000.
Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.
Insurance products are offered through PPI Management Inc., a national licensed insurance marketing organization that support independent advisors with their business, and through multiple insurance companies.
