British Columbia

B.C. Tax Reduction Credit

Easy application

Apply for when filing your taxes

The B.C. Tax Reduction Credit is a non-refundable tax credit for people who have a net income below $34,929.

If you have a net income below the “threshold amount” each year, you can claim the maximum tax reduction credit of $481. If you earn more than the threshold amount, you will get a lower tax reduction credit.

The threshold amount is different each year. For the 2021 tax year, the net income threshold amount is $21,418. If your net income is higher than that, your tax reduction credit is reduced by 3.56% of every dollar you earned over the threshold amount. This means that if your net income is $34,929 or higher, your B.C. Tax Reduction Credit will be zero.

You're eligible to receive the non-refundable credit if:

  • You're a resident of B.C.
  • You file your income tax return for the given year.

Proof of  residency in Province

For example:

  • lease agreement
  • rent receipt
  • household bill
    • gas
    • electricity
    • cable television
    • telephone
  • driver's license
  • vehicle registration or car insurance
  • membership in social or professional organization
  • Other:
    • bank information
    • employment information

Social Insurance Number

For example:

  • confirmation of SIN letter
  • plastic SIN card (non-expired)

You claim the B.C. Tax Reduction Credit when you file your T1 Income Tax Return using the British Columbia Tax form (BC428).

Last updated: April 2, 2021