Personal Tax -
New Top Personal Income Tax Bracket
For 2014 and 2015 only, a new top personal income tax
bracket will be introduced. Taxable income exceeding $150,000 will
be subject to a provincial personal income tax rate of 16.8%. The
top provincial personal income tax rate for 2013 is 14.7%.
With the re-implementation of the PST, tobacco tax rates
are being increased on April 1, 2013, as per the 2012 Budget. Budget
2013 provides for further tax rate increases effective October 1, 2013.
BC Home Owner Grant
The threshold for the phase-out of the home owner grant
is increased from $1,285,000 to $1,295,000 for the 2013 tax year (as
previously announced). For properties valued above $1,295,000, the
grant is reduced by $5 for every $1,000 of assessed value (i.e., 0.5%) in
excess of the threshold.
The home owner grant is only
allowed for the principal residence. Effective January 2011, the Home
Owner Grant Program is amended to provide relief to homeowners who were
disentitled from the grant because they incorrectly applied for a grant on a
second residential property rather than on their principal residence.
Property Tax Deferment Program for
Families with Children
This program allows eligible homeowners who financially
support a child under age 18 to defer their property taxes.
Effective on the later of March 19, 2013 and Royal
Assent, the program will be expanded to allow an eligible homeowner who
financially supports a child aged 18 or over to defer taxes if the child
is enrolled in an educational institution or is disabled.
Simple interest is charged on deferred taxes at the
Currently, repayment of deferred taxes is required if a
homeowner disposes of any part of the property, regardless of size.
Effective on Royal Assent, the Act is amended to allow the deferment to continue
when a portion of the property is disposed of, if the homeowner: