RN Canada provides accounting, tax, and fractional CFO advisory to founders and owner-managed businesses across British Columbia, from our second office in Vancouver. BC is our secondary market alongside our primary Alberta base, and we bring the same depth to it: bookkeeping, T2 corporate filing, PST and GST, payroll, Employer Health Tax, financial reporting, and the higher-level finance decisions a growing company faces. This page explains what that looks like under BC's 2026 tax rules and who we work with.
Why British Columbia's tax setup matters for your business
BC's tax environment is more complex than Alberta's, and a few features need active management.
BC charges a 7% provincial sales tax (PST) in 2026, separate from the 5% federal GST, for a combined 12% on most taxable goods and many services. PST has its own registration, its own rules on what is taxable, and its own remittance schedule — it is not simply a second percentage on the GST base. Getting place-of-supply and exemption rules right is a real compliance task for BC sellers.
BC also levies an Employer Health Tax (EHT). In 2026, employers with BC remuneration up to $1 million are exempt; between $1 million and $1.5 million a notch rate of 5.85% applies to the excess over $1 million; and above $1.5 million the rate is 1.95% on the entire payroll. As you grow your team, crossing these thresholds changes your cost base, so it pays to model EHT before you hire.
On corporate income, BC charges 2% on small-business income and 12% on general income in 2026. With the federal 9% small-business and 15% general rates added, a BC corporation pays a combined 11% on its first $500,000 of active business income and 27% above it. BC corporations file the federal T2; unlike Alberta, BC does not run a separate provincial corporate return.
What RN Canada does for BC businesses
We cover the full finance stack, so you can engage us for one piece or all of it:
- Bookkeeping and tax filing — month-end books, GST, PST, payroll, EHT, and T2 corporate returns. See bookkeeping & tax filing.
- Part-time / fractional CFO — forecasting, financial modelling, financing readiness, and board-level reporting without a full-time hire. See part-time CFO & management accountant.
- Reporting, valuation, internal audit, and performance management for more mature companies. See all services.
For BC specifics, our resource guides cover the BC corporate tax guide, the BC Employer Health Tax guide, BC PST explained, and how to incorporate a business in BC. Model your PST and GST with the sales tax calculator, and see the BC taxes FAQ for quick answers.
Who we serve in British Columbia
Our BC clients are typically incorporated owner-managed businesses and founders past the start-up stage — roughly $500K to $20M in revenue — across professional corporations, tech and SaaS, retail and e-commerce, trades and construction, and newcomer-founded companies. The firm is led by founder Ozgur Duymaz, who holds a Ph.D. in accounting and finance and is a CPA (Canada), ACCA (UK), and CMA (US), with deep expertise in Canadian tax, IFRS, governance, and valuation.
Office and how we work
Our second office is in Vancouver at 777 Hornby Street, Suite 600, V6Z 1S4, serving founders across British Columbia. You are welcome to meet us there, and we also work with BC clients beyond Vancouver — and across Canada — remotely through cloud accounting and video meetings.
Ready to talk through your BC corporate tax, PST, EHT, bookkeeping, or fractional CFO needs? Get in touch with RN Canada.
Frequently asked questions
What is the PST rate in British Columbia in 2026? British Columbia charges a 7% provincial sales tax (PST) in 2026, applied alongside the 5% federal GST for a combined 12% on most taxable goods and many services. Unlike HST provinces, BC's PST is a separate tax with its own registration and remittance, and it applies differently to services and exemptions than GST does.
Does my BC business have to pay the Employer Health Tax? It depends on payroll. In 2026, BC's Employer Health Tax exempts employers with BC remuneration up to $1 million. Between $1 million and $1.5 million, a notch rate of 5.85% applies to the amount over $1 million. Above $1.5 million, the tax is 1.95% on the entire BC payroll. We help BC employers model where they sit and plan for the threshold.
What is BC's corporate tax rate in 2026? British Columbia's provincial corporate income tax rate in 2026 is 2% on small-business income eligible for the small business deduction and 12% on general income. Combined with the federal 9% small-business and 15% general rates, that gives an 11% combined small-business rate and a 27% combined general rate.
Does RN Canada have an office in British Columbia? Yes. RN Canada has a second office in Vancouver at 777 Hornby Street, Suite 600, serving founders and owner-managed businesses across British Columbia. We also work with BC clients outside Vancouver remotely through cloud accounting and video meetings.
How is BC's tax different from Alberta's for a business? The two main differences in 2026 are sales tax and payroll tax. BC charges a 7% PST (Alberta has none) and an Employer Health Tax on larger payrolls (Alberta has none). BC's general corporate rate is also higher at 12% versus Alberta's 8%, though both share a 2% small-business rate. We help businesses weigh these differences when structuring operations.
Frequently asked questions
British Columbia charges a 7% provincial sales tax (PST) in 2026, applied alongside the 5% federal GST for a combined 12% on most taxable goods and many services. Unlike HST provinces, BC's PST is a separate tax with its own registration and remittance, and it applies differently to services and exemptions than GST does.
It depends on payroll. In 2026, BC's Employer Health Tax exempts employers with BC remuneration up to $1 million. Between $1 million and $1.5 million, a notch rate of 5.85% applies to the amount over $1 million. Above $1.5 million, the tax is 1.95% on the entire BC payroll. We help BC employers model where they sit and plan for the threshold.
British Columbia's provincial corporate income tax rate in 2026 is 2% on small-business income eligible for the small business deduction and 12% on general income. Combined with the federal 9% small-business and 15% general rates, that gives an 11% combined small-business rate and a 27% combined general rate.
Yes. RN Canada has a second office in Vancouver at 777 Hornby Street, Suite 600, serving founders and owner-managed businesses across British Columbia. We also work with BC clients outside Vancouver remotely through cloud accounting and video meetings.
The two main differences in 2026 are sales tax and payroll tax. BC charges a 7% PST (Alberta has none) and an Employer Health Tax on larger payrolls (Alberta has none). BC's general corporate rate is also higher at 12% versus Alberta's 8%, though both share a 2% small-business rate. We help businesses weigh these differences when structuring operations.