Personal Income Taxes and the METR in British Columbia
In British Columbia, the province expects over $16.6 billion from personal income taxes in 2024.
For families and individuals, these taxes represent a substantial expense that shapes everyday economic choices.
While BC’s income taxes are relatively less burdensome compared to other provinces, they still significantly affect disposable income and create various indirect effects by altering work incentives.
For lower- and middle-income individuals, personal income taxes also interact with various other programs, from income supports to payroll taxes, and the combined effect is crucial for understanding how policies influence work incentives, disposable income, and the broader economy.
This overall effect can be best measured using a simple concept known as the Marginal Effe