Takehome

British Columbia take-home pay

Type an British Columbia gross, how often you are paid, and a pay date. Takehome subtracts federal tax, provincial tax, CPP, and EI, and shows what you keep this period.

The engine does not read a clock. It uses the pay date you enter.

Net pay

$

Your deductions

Federal tax
Provincial tax
CPP
CPP2
EI
Total
Employer pays

These amounts are not withheld from you. They are the employer’s statutory CPP and EI premiums on this pay.

Employer CPP
Employer CPP2
Employer EI
Employer cost (gross + premiums)

No salary figure leaves the browser.

Show the working
Factor Value Definition
A Annual taxable income. (T4127 Chapter 4, Step 1)
R Federal tax rate that applies to the annual taxable income A. (T4127 Chapter 8, Table 8.1)
K Federal constant; the tax overcharged when applying the higher federal rates to A. (T4127 Chapter 8, Table 8.1)
K1 Federal non-refundable personal tax credit (lowest federal tax rate × TC). (T4127 Chapter 4, Step 2)
K2 Federal tax credit for base CPP contributions and EI premiums for the year. (T4127 Chapter 4, Step 2)
K4 Federal non-refundable tax credit calculated using the Canada employment amount. (T4127 Chapter 4, Step 2)
T3 Annual basic federal tax. (T4127 Chapter 4, Step 2)
T1 Annual federal tax deduction. (T4127 Chapter 4, Step 3)
V Provincial or territorial tax rate for the year. (T4127 Chapter 8, Table 8.1)
KP Provincial or territorial constant. (T4127 Chapter 8, Table 8.1)
K1P Provincial or territorial non-refundable personal tax credit (lowest provincial rate × TCP). (T4127 Chapter 4, Step 5)
K2P Provincial or territorial tax credit for base CPP contributions and EI premiums for the year. (T4127 Chapter 4, Step 5)
T4 Annual basic provincial or territorial tax. (T4127 Chapter 4, Step 4)
V1 Provincial surtax calculated on the basic provincial tax (Ontario only). (T4127 Chapter 4, Step 5)
V2 Ontario Health Premium calculated on taxable income. (T4127 Chapter 4, Step 5)
S Provincial tax reduction (Ontario and British Columbia). (T4127 Chapter 4, Step 5)
T2 Annual provincial or territorial tax deduction (except Quebec). (T4127 Chapter 4, Step 5)
T Estimated federal and provincial or territorial tax deductions for the pay period: round((T1+T2)/P)+L. This is the combined Step 6 quotient. It may differ by one cent from employee.total_tax, which is the sum of the separately rounded federal and provincial lines PDOC displays (round(T1/P)+L and round(T2/P)). Compare screen totals to employee.total_tax; keep breakdown.T as the T4127 figure. (T4127 Chapter 4, Step 6)
C Canada (or Quebec) Pension Plan contributions for the pay period. (T4127 Chapter 6)
C2 Second additional Canada (or Quebec) Pension Plan contributions for the pay period. (T4127 Chapter 6)
EI Employment insurance premiums for the pay period. (T4127 Chapter 7)
F5 Deductions for Canada Pension Plan additional contributions for the pay period. (T4127 Chapter 4, Step 1)
BPAF Federal Basic Personal Amount. (T4127 Chapter 2; Table 8.2)
K3 Other federal non-refundable tax credits authorized by a tax services office or tax centre. (T4127 Chapter 4, Step 2)
K3P Other provincial or territorial non-refundable tax credits authorized by a tax services office or tax centre. (T4127 Chapter 4, Step 5)
K4P Territorial non-refundable tax credit calculated using the provincial or territorial Canada employment amount. (T4127 Chapter 4, Step 5)
K5P Provincial supplemental non-refundable tax credit (lowest provincial tax rate). (T4127 Chapter 4, Step 5)
LCF Federal labour-sponsored funds tax credit. (T4127 Chapter 4, Step 3)
LCP Provincial or territorial labour-sponsored funds tax credit. (T4127 Chapter 4, Step 5)
Y Additional Ontario tax-reduction amount based on the number of eligible dependants, used in Factor S. (T4127 Chapter 4, Step 5)
F5A CPP additional-contribution deduction for the pay period taken from periodic income. (T4127 Chapter 4, Step 1)
F5B CPP additional-contribution deduction for the pay period taken from the non-periodic payment. (T4127 Chapter 4, Step 1)
D Employee’s year-to-date (before the pay period) Canada Pension Plan contribution with the employer. (T4127 Chapter 6)
D1 Employee’s year-to-date (before the pay period) employment insurance premium with the employer. (T4127 Chapter 7)
D2 Employee’s year-to-date (before the pay period) second additional CPP contribution with the employer. (T4127 Chapter 6)
P The number of pay periods in the year. (T4127 Chapter 4, Step 1)
PR The number of pay periods left in the year (including the current pay period). (T4127 Chapter 4, Step 1)
PM Total months during which CPP and/or QPP contributions are required (used to prorate the maximum contribution). (T4127 Chapter 6)
CEA Canada Employment Amount, a non-refundable tax credit used in the calculation for K4 and K4P. (T4127 Chapter 8, Table 8.2)
TC Total claim amount reported on federal Form TD1. (T4127 Chapter 2)
TCP Total claim amount reported on the provincial or territorial Form TD1. (T4127 Chapter 2)
IE Insurable earnings for the pay period, including insurable taxable benefits, bonuses, and retroactive pay increases. (T4127 Chapter 7)
QPIP Quebec Parental Insurance Plan premium for the pay period. (T4127 Chapter 8, Table 8.29)

Sources

    This is T4127 Option 1 net pay for the pay date, frequency, gross, and claim codes you typed. It recalculates in this browser. No salary figure leaves the device.

    British Columbia T2 is seven brackets, a BC tax reduction, and — on and after 1 July 2026 — Option 1 vs Option 2 first-bracket proration.

    January 2026 first bracket 5.06%

    Through 30 June 2026 the first BC rate is 5.06% to $50,363, then 7.70%, 10.50%, 12.29%, 14.70%, 16.80%, 20.50% from $265,545. TCP is $13,216. Indexation used 2.2%.

    July 2026 proration — this is the BC-specific content

    The 123rd edition changes the first-bracket rate mid-year. Option 1 (the default payroll method) uses a prorated 6.14% lowest rate and a prorated K constant on that bracket; Option 2 uses 5.60% with different constants. The 7.70% and higher brackets keep their rates; only the first band and the tax reduction amounts are option-scoped. Pay dates on/after 2026-07-01 load rule set 2026-07-01 and the engine sets prorated_rules_applied when Option 1 hits a prorated row.

    BC tax reduction

    January: basic $575, with a $41,722 dependant figure in the reduction formula. July Option 1: basic $805; Option 2: $690; dependant $44,952 on both options. This is a reduction of BC tax for lower incomes, not a credit at V. It is why two BC paycheques with the same first-bracket gross can differ between January and July by more than the 5.06% → 6.14% rate change.

    No surtax, no health premium

    BC does not add an Ontario-style surtax or OHP. The July change is a first-bracket and reduction change, not a new top rate. Highest statutory rate remains 20.50% from $265,545.