The following settings are based on the CRA document T4127–Payroll Deductions Formulas for Computer Programs – 123rd Edition. Effective July 1, 2026, the following changes must be made to your payrolls.
Effective July 1, 2026, the only changes are to British Columbia Tax Tables and Tax Parameters.
The Provincial tax tables and tax parameters will only need to be added once for all payrolls. You would add the new exemptions and tax tables using a new effective date of July 2026 or 20260701. The new Global tables can be added at any time as those tables are date effective.
Provincial Changes
British Columbia
|
|---|
Global Provincial Tax Tables
- The Global Provincial Tax Tables values would be added using a new effective date of July 01, 2026. Leave the existing Provincial Tax Tables as is.
The new Global Provincial Tax Table values should be as follows.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Table
Action: Add
|
British Columbia |
|
|
|---|---|---|
|
Tax Table Step |
Factor 1 |
Factor 2 |
|
50363 |
.0614 |
|
|
100728 |
.0770 |
786 |
|
115648 |
.1050 |
3606 |
|
140430 |
.1229 |
5676 |
|
190405 |
.1470 |
9061 |
|
265545 |
.1680 |
13059 |
|
9999999 |
.2050 |
22884 |
Global Provincial Exemptions
- Add the Provincial exemptions effective July 1, 2026. There are no changes from January; however, the system requires a new July 1 reference table. Leave the previous Provincial exemptions as is. The following tables detail the exemption ranges and the exemption mid-points. It is up to each site to determine if they want to use the high end of each range or the mid-point of each range as the exemption amounts.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Exemptions
Action: Add
|
British Columbia |
|
|
|---|---|---|
|
Exemption Code |
Range |
Mid-Point |
|
01 |
min – 13,216 |
13,216.00 |
|
02 |
13,216 – 16,190 |
14,703.00 |
|
03 |
16,190 – 19,164 |
17,677.00 |
|
04 |
19,164 – 22,138 |
20,651.00 |
|
05 |
22,138 – 25,112 |
23,625.00 |
|
06 |
25,112 – 28,086 |
26,599.00 |
|
07 |
28,086 – 31,060 |
29,573.00 |
|
08 |
31,060 – 34,034 |
32,547.00 |
|
09 |
34,034 – 37,008 |
35,521.00 |
|
10 |
37,008 – 39,982 |
38,495.00 |
Global Provincial Tax Parameters
- Add a new set of Global Provincial Tax Parameters using the effective date of 20260701 or July 01, 2026.
Payroll System Maintenance > Payroll Database Maintenance
Setup Table: Provincial Tax Parameters
Action: Add
|
Tax Credits |
|
|---|---|
|
Federal Personal Tax Credit (K1) |
.14 |
|
Provincial Personal Tax Credit (K1P) |
.0614 |
|
Federal Employment Credit (K4) |
1501.00 |
|
Federal Basic Personal Amount (BPAF) |
|
|---|---|
|
Minimum Amount |
14,829.00 |
|
Threshold |
181,440.00 |
|
Threshold |
258,482.00 |
|
Provincial Basic Personal Amount (BPAP) |
(not applicable for BC at this time) |
|---|---|
|
Minimum Amount |
0 |
|
Threshold |
0 |
|
Threshold |
0 |
|
Maximum Contributions |
||
|---|---|---|
|
CPP Maximum Contributions |
4,230.45 |
CPP1 Limit Only |
|
CPP2 Maximum Contributions |
416.00 |
CPP2 Limit Only |
|
EI Maximum Contributions |
1,123.07 |
|
|
Provincial Tax Reduction (S) |
||||
|---|---|---|---|---|
|
Flat Amount (S2) |
805.00 |
|
|
|
|
Rate |
.0356 |
Threshold |
25,570.00 |
|
|
Amount |
0 |
Threshold |
41,722.00 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Amount |
0 |
Threshold |
0 |
|
|
Provincial Surtax V1 |
|||
|---|---|---|---|
|
Flat Amount |
0 |
|
|
|
Rate |
0 |
Threshold |
0 |
|
Rate |
0 |
Threshold |
0 |
|
Provincial Additional Tax (V2) |
|||||
|---|---|---|---|---|---|
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |
|
Rate |
0 |
Threshold |
0 |
Amount |
0 |