On February 19, 2008, the government introduced legislation to reduce the two lowest personal income tax rates for 2008.
For the 2008 tax year:
·Tax brackets are indexed
·Indexing of credits and tax brackets is based on the Consumer Price Index for British Columbia(BC CPI) for the 12-month period ended on September 30,2007
·Various non-refundable tax credits are indexed(see the 2008 Non-refundable tax credit block)
·The BC CPI used to calculate 2008 amounts was 1.8%
Personal Income Tax Brackets and Rates – 2008 Tax Year
Taxable income – 2008 Brackets
Tax Rate
$0 to $35,016
5.24%
$35,016.01 to $70,033
7.98%
$70,033.01 to $80,406
10.50%
$80,406.01 to $97,636
12.29%
Over $97,636
14.70%
Tax rates are applied on a cumulative basis. If your taxable income is more than $35,016 the first $35,016 of taxable income is taxed at 5.24%, the next $35,017 of taxable income is taxed at 7.98%, the next $10.373 is taxed at 10.5%, the next $17,230 of taxable income is taxed at 12.29% and any taxable income over $97,636 is taxed at 14.7%
