British Columbia's 2025 budget raised the province's lowest tax bracket rate from 5.06% to 5.60% for 2026, applying retroactively to January 1 but not reaching payroll systems until the CRA updated its withholding tables mid-year. That lag means employers had already withheld six months of pay at the old rate before the correction took effect, leaving a shortfall that must be caught up over the remainder of the year. No other province or territory adjusted its lowest bracket rate for 2026, making BC's mid-year change unusual among the country's payroll tables.
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