B.C. speculation and vacancy tax

The Province of British Columbia describes the speculation and vacancy tax as "an annual tax that applies based on: How property owners use their residential property; The property owner's residency status; Where property owners earn and report their income." It applies only to property classed as residential in a designated taxable area.

The tax year is the calendar year, and the tax applies based on ownership as of December 31. Each year, owners receive a declaration letter between mid-January and mid-February and declare how they used the property in the previous year by March 31. When a property has more than one owner, each person on title makes a separate declaration.

If no exemption applies, the tax is a percentage of the property's assessed value, and the rate depends on whether the owner is a Canadian citizen or permanent resident, a foreign owner or an "untaxed worldwide earner" (a category the Province says includes members of a satellite family). With shared ownership, each owner owes tax on their share.

Two non-refundable tax credits can reduce the tax. The credit for B.C. residents is applied automatically, with a maximum of $4,000 for the 2026 tax year and after. The credit for other owners is based on B.C. income and must be applied for through eTaxBC.

The tax applies only in the designated taxable areas listed by the Province (list last updated December 8, 2025).

Capital Regional District: City of Colwood, City of Langford, City of Victoria, District of Central Saanich, District of Highlands, District of Metchosin, District of North Saanich, District of Oak Bay, District of Saanich, District of Sooke, Town of Sidney, Town of View Royal, Township of Esquimalt.

Metro Vancouver Regional District: City of Burnaby, City of Coquitlam, City of Delta, City of Langley, City of Maple Ridge, City of New Westminster, City of North Vancouver, City of Pitt Meadows, City of Port Coquitlam, City of Port Moody, City of Richmond, City of Surrey, City of Vancouver, City of White Rock, District of North Vancouver, District of West Vancouver, Township of Langley, UBC lands, University Endowment Lands, Village of Anmore, Village of Belcarra.

Other taxable areas: City of Abbotsford, City of Chilliwack, City of Courtenay, City of Duncan, City of Kamloops, City of Kelowna, City of Nanaimo, City of Parksville, City of Penticton, City of Salmon Arm, City of Vernon (except the Predator Ridge resort), City of West Kelowna, District of Coldstream, District of Lake Country, District of Lantzville, District of Mission, District of North Cowichan, District of Peachland, District of Squamish, District of Summerland, Town of Comox, Town of Ladysmith, Town of Lake Cowichan, Town of Qualicum Beach, Village of Cumberland, Village of Lions Bay.

Excluded areas: "Reserve lands, treaty lands and lands of self-governing Indigenous Nations are not part of the taxable areas." "Islands that are accessible only by air or water are not part of the taxable areas, except for Vancouver Island." The Province offers an interactive location map and notes that the legislation governs.

Each owner claims their own exemption on the annual declaration. Exemptions for individuals: principal residence-related exemptions; previous principal residence; occupied by a tenant; cannot live in the residence because it's uninhabitable; secondary residence close to medical treatment facility; just bought or inherited the property; separation or divorce; bankruptcy; recent death of owner; property is in a trust created for a minor by a will; property is in a trust for the benefit of a charity; property is a strata hotel; property includes a licensed child daycare; and property is only accessible by water.

For the tenant exemption, the Province says a renter or non-arm's length tenant must occupy the home "for at least six months in the calendar year" and tenancy requirements must be met. For the principal residence exemption, the owner "must be a Canadian citizen or permanent resident of Canada who is a B.C. resident for income tax purposes and is not an untaxed worldwide earner."

Exclusions include a property with "an assessed value of $150,000 or less" and a building "divided into four or more apartments for rental and is not stratified". Registered charities, housing co-ops, governments and Indigenous Nations, among others, do not need to declare.

Online through eTaxBC using the Letter ID and Declaration Code from the declaration letter, plus the owner's social insurance number and date of birth; or by phone with help from the Province. Letters are mailed by postal code from the last two weeks of January through the first three weeks of February. Late declarations can be submitted or corrected for up to 3 years, and the administrator may accept them for up to 6 years.

The tax is due on the first business day in July following the tax year (July 2 in 2026, for the 2025 tax year). A Notice of Assessment is mailed only to owners who owe tax. Payment can be made through eTaxBC, through a bank or financial institution (bill payment, wire transfer or electronic funds transfer), at a Service BC centre, or by mail. The tax must be paid in Canadian funds and cannot be paid by credit card. A 10 percent penalty, as well as interest, applies to any unpaid tax after the due date; the interest rate is 3 percent per year above the provincial government banker's prime rate, compounded monthly.

The Province's pages state that an owner who does not complete a declaration pays tax "at the maximum rate of 2 percent of your property's assessed value". That figure matches the top rate for 2019 to 2025; the published top rate for the 2026 tax year is 3%. The Province states that "the administrator may still examine and assess late declarations".

An assessment of tax, penalties or interest can be appealed to the Minister of Finance. The appeal "must be received by the Minister of Finance within 90 days from the date on the assessment, determination or notice you're appealing" (Speculation and Vacancy Tax Act, sections 98, 98.1 and 99). The Province states that an assessment issued because no declaration was submitted cannot be appealed, nor can an assessment based on a declaration that no exemption applies for the 2023, 2024 or 2025 tax years. Outstanding assessments remain payable during an appeal. Questions about assessed value or classification go to BC Assessment, not the appeal.

For the 2026 tax year (property use during the 2026 calendar year), the rates rose to 3% for foreign owners and untaxed worldwide earners and 1% for Canadian citizens and permanent residents, from 2% and 0.5%. The maximum tax credit for B.C. residents rose from $2000 (2018 to 2025) to $4,000 for the 2026 tax year and after. Effective January 1, 2027, the rate is 4% for foreign owners and untaxed worldwide owners and 1% for Canadians. The Province states the new rates do not affect declarations about use in 2025 or earlier (tax rates page last updated July 3, 2026).