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 $40,807.

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 2025 tax year, the net income threshold amount is $25,020. 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 $40,807 or higher, your B.C. Tax Reduction Credit will be zero.

The tax credit is updated regularly per tax year. Visit the B.C. Tax Reduction Credit page for further information.

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: December 12, 2024