BC's Speculation and Vacancy Tax: Who Declares, Who Pays

If you own a home in most of Metro Vancouver, the Fraser Valley's larger cities or another taxable area of BC, you have to file a speculation and vacancy tax declaration every year, even if you live in the home and owe nothing. The rates rose for 2026, and more changes start in 2027. Here is who has to declare, who pays and who is exempt.

The short version

Who has to declare

• Every owner, separately. Each person on title declares, even if the other owner is a spouse or relative.
• Every year. Declarations are due by March 31 and cover how you used the home in the previous calendar year, even when nothing has changed.
• Starting with a letter. The Province mails letters from late January through February, with a Letter ID and Declaration Code. You can't declare until yours arrives.
• Online or by phone. Declare online through eTaxBC, or call 1-833-554-2323 toll-free.

The tax applies in 59 communities. They include Coquitlam, Port Coquitlam, Port Moody, Anmore, Belcarra and the rest of Metro Vancouver's cities, the Fraser Valley cities of Abbotsford, Chilliwack and Mission, Greater Victoria, Nanaimo, Kelowna, Kamloops and others. Reserve lands and treaty lands are not included.

Rates and credits

• 2025 tax year: 0.5% for Canadian citizens and permanent residents, 2% for foreign owners and untaxed worldwide earners.
• 2026 tax year: 1% and 3%, declared by March 31, 2027.
• 2027 tax year: the top rate rises to 4%.

An untaxed worldwide earner is someone whose income not reported in Canada is greater than the income they report here, which includes what are sometimes called satellite families. The tax is the rate times your share of the home's assessed value, and any amount owing is due on the first business day of July.

BC residents who are Canadian citizens or permanent residents, and not untaxed worldwide earners, get a credit of up to $4,000 from the 2026 tax year, applied automatically. At the 1% rate, that covers the tax on up to $400,000 of assessed value. Other owners may get a credit based on their BC income.

Common exemptions

• Principal residence. For owners who are Canadian citizens or permanent residents, BC residents for income tax and not untaxed worldwide earners. If you have more than one home, only the one you live in longest during the year qualifies.
• Rented out. A home occupied by tenants for at least six months of the year. Each tenancy has to be for at least a month, so nightly and weekly rentals don't count, and arm's-length tenants need a written tenancy agreement under the Residential Tenancy Act.
• Family living there. For owners who are Canadian citizens or permanent residents and not untaxed worldwide earners, a relative who lives in the home with your permission, and spends most of each month there, can count toward the six months. A spouse, or your minor child who lives with you, can't.
• Just bought or inherited. You are generally exempt for the year you buy, if property transfer tax applied to the purchase or you used the first-time buyer or newly built home exemption, and for the year you inherit.
• Death of an owner. The owners and the executor are exempt for the year of death and the following year.
• Other situations. Separation, a move into residential care or away for medical treatment, construction or renovation that keeps the home empty for at least 90 days, and damage from a disaster, each with conditions.

If you don't declare

An owner who doesn't declare is taxed at the top rate, which is 3% for 2026 and 4% from 2027. You can usually still declare late, within three years. Starting with the 2027 tax year, the Province has also announced a $250 penalty for declaring after March 31, and unpaid tax carries a 10% penalty plus interest. Since April 2026, you can't appeal an assessment that follows from your own declaration that no exemption applies, so read the questions carefully before you submit.

Buying or selling

A buyer doesn't take on the seller's speculation and vacancy tax debt; the tax belongs to the person who owned the home. The tax applies based on who owns the home on December 31, so if you are selling a second property or keeping one empty while you decide, the completion date matters. A second home that isn't your principal residence, isn't rented out for six months and isn't covered by another exemption is taxed even if you use it yourself. For the 2026 tax year, a Canadian citizen or permanent resident who isn't an untaxed worldwide earner pays 1% of their share of its assessed value, less any credit.

Questions homeowners often ask me

Do I have to declare if I live in my home?

Yes. Every owner in a taxable area declares every year by March 31. If the home is your principal residence and you qualify, you are exempt and owe nothing.

What is the speculation and vacancy tax rate in 2026?

1% of the assessed value for Canadian citizens and permanent residents, and 3% for foreign owners and untaxed worldwide earners. The top rate rises to 4% for 2027.

Is a rented condo exempt?

It can be, if it is rented for at least six months of the year in tenancies of at least a month, with a written tenancy agreement for tenants at arm's length.

What happens if I miss the March 31 deadline?

Declare as soon as you can. Without a declaration, you are taxed at the top rate, and starting with the 2027 tax year a $250 late declaration penalty also applies.

Which areas pay the speculation and vacancy tax?

59 communities, including all of the Tri-Cities and most of Metro Vancouver, Abbotsford, Chilliwack and Mission, Greater Victoria, Nanaimo, Kelowna and Kamloops.

Planning to sell a second property? Request a free home evaluation, and read about selling a tenanted home in BC and the selling process from listing to completion.

This article is general information, not tax advice. For the Province's guide, see the speculation and vacancy tax.