How to Fill Out BC428 Provincial Tax Credits

If you live in British Columbia, you pay both federal and provincial income tax. While Schedule 1 calculates your federal tax, Form BC428 calculates your provincial tax. Both forms use your taxable income from your T1 General return as the starting point, but they apply different tax rates and offer different credits. This guide explains each section of BC428 so you can verify your provincial tax calculation and ensure you are claiming all the credits available to you.

Who Needs to Complete BC428?

You complete Form BC428 if you were a resident of British Columbia on December 31 of the tax year, or if you were a non-resident of Canada but earned income in BC. Most tax software will automatically determine your province of residence and generate the correct provincial form. If you are filing on paper, you can download BC428 from the CRA website as part of the BC tax package.

Part 1: BC Tax on Taxable Income

The first section calculates your BC provincial tax using BC's own progressive tax brackets. For 2025, the approximate brackets are:

• 5.06% on the first $47,937 of taxable income.
• 7.70% on income between $47,937 and $95,875.
• 10.50% on income between $95,875 and $110,076.
• 12.29% on income between $110,076 and $149,958.
• 14.70% on income between $149,958 and $227,091.
• 16.80% on income over $227,091.

These brackets are separate from the federal brackets and are indexed for inflation each year. Your taxable income is the same figure used on Schedule 1, taken from line 26000 of your T1 return.

Part 2: BC Non-Refundable Tax Credits

Similar to the federal credits on Schedule 1, BC428 includes provincial non-refundable credits that reduce your BC tax. Many of these credits parallel the federal ones but use different amounts. Key BC credits include:

BC Basic Personal Amount

Every BC taxpayer can claim the provincial basic personal amount, which is approximately $12,580 for 2025. The credit is calculated at BC's lowest tax rate of 5.06%, giving a credit of approximately $636.

BC Age Amount

If you are 65 or older, you can claim the BC age amount (approximately $5,997 for 2025), subject to income-based reduction similar to the federal age amount.

BC Spouse or Common-Law Partner Amount

Similar to the federal credit, you can claim a provincial amount for supporting a low-income spouse or partner.

BC Disability Amount

If you are approved for the Disability Tax Credit, you can claim the BC disability amount (approximately $9,428 for 2025) in addition to the federal disability amount on Schedule 1.

BC Tuition Credit

Tuition paid to qualifying institutions generates a BC tax credit at the provincial rate. Unused amounts can be carried forward.

BC Medical Expense Credit

Eligible medical expenses that exceed the threshold generate a provincial credit, calculated similarly to the federal medical expense credit but at BC's tax rate.

BC Charitable Donations Credit

Donations generate a BC credit at the lowest provincial rate on the first $200 and the highest rate on amounts above $200.

CPP, EI, and Other Credits

BC428 also includes lines for CPP/QPP contributions, EI premiums, pension income amount, and the Canada employment amount, all calculated at BC's lowest rate.

Part 3: BC Tax Reduction

One of the most important features of BC428 is the BC tax reduction, which benefits low-income individuals and families. If your net income is below a certain threshold, the BC tax reduction can eliminate or significantly reduce your provincial tax. The reduction is calculated based on your basic provincial tax, your credits, and your income level. This is separate from the credits in Part 2 and specifically targets low-income taxpayers.

The BC tax reduction is particularly beneficial for newcomers who may have arrived partway through the year and earned only a partial year of income. If your total income for the year is modest, this reduction could mean you owe little or no BC provincial tax.

Part 4: Additional Provincial Credits and Surtax

BC428 may also include sections for:

• BC Mining Exploration Tax Credit: For individuals who invested in qualifying BC mining exploration.
• BC Political Contribution Tax Credit: For contributions made to registered BC political parties or candidates.
• BC Employee Share Ownership Plan Tax Credit: For eligible employees who purchased shares through a registered plan.

These credits are less commonly claimed but are worth checking if they apply to your situation.

How BC428 Connects to Your T1 Return

The net BC tax calculated on BC428 is transferred to your T1 General return, where it is added to your federal tax from Schedule 1 to determine your total tax payable. If you have already paid taxes through payroll deductions, installment payments, or other sources, those amounts are subtracted to determine whether you owe additional tax or are entitled to a refund.

Provincial Refundable Credits

In addition to the non-refundable credits on BC428, British Columbia offers several refundable credits that are claimed elsewhere on your return:

• BC Climate Action Tax Credit: A quarterly payment to help offset the cost of the carbon tax. Claimed through your T1 return and based on family size and income.
• BC Sales Tax Credit: For low-income individuals and families.
• BC Training Tax Credit: For eligible apprentices and employers.

These refundable credits can result in money back even if you owe no tax, making them particularly valuable for low-income households and newcomers.

Tips for Completing BC428

• Use certified tax software to automatically populate BC428 based on your T1 information.
• Compare your provincial credits to your federal credits on Schedule 1. While many are similar, the amounts and rates differ.
• Do not forget the BC tax reduction if your income is modest. This can provide significant savings.
• If you moved to or from BC during the year, your provincial tax may be prorated. The province of residence on December 31 generally determines which provincial form you complete.
• Review the BC government tax credits page for the latest information on provincial credits and amounts.

Common Mistakes to Avoid

• Claiming only federal credits and forgetting the corresponding provincial credits on BC428.
• Not claiming the BC tax reduction when eligible.
• Using federal credit amounts on the provincial form (the amounts are different).
• Forgetting to transfer unused disability or tuition amounts from a family member at the provincial level.

Related Resources

• Guide to T1 Schedule 1 Federal Tax Calculation
• Guide to T2201 Disability Tax Credit Certificate
• How to File Taxes as a Newcomer to Canada
• How to Apply for the GST/HST Credit
• Guide to T1036 Home Buyers' Plan Repayment

Final Thoughts

Form BC428 is an essential part of your tax return if you live in British Columbia. While it mirrors much of the structure of the federal Schedule 1, the provincial tax rates, credit amounts, and special features like the BC tax reduction make it a distinct and important form. By understanding each section, you can confirm that your tax software is correctly calculating your provincial tax and that you are taking advantage of every credit available to you. If you are unsure about any aspect of your provincial return, consider consulting a tax professional or using one of the free tax clinics available through the CRA's Community Volunteer Income Tax Program.

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