BC's home flipping tax has applied to sales since January 1, 2025. It isn't only for professional flippers. It can apply to anyone who sells residential property in BC, or assigns a presale contract, within two years of buying it: a family that has to move after 18 months, a renovator, an investor who changed plans. The rate falls day by day after the first year, and the federal government has its own separate one-year rule. That means the date your sale completes can matter more than the price you negotiate. The calculator shows by how much.
What the tax is
The Residential Property (Short-Term Holding) Profit Tax Act is a provincial tax on the profit from selling a "taxable property" within 730 days. That includes residential property in BC and the right to buy one, such as a presale contract. It applies to individuals, corporations, partnerships and trusts, whether or not they live in BC.
It's separate from income tax. It isn't administered or harmonized with the federal flipping rules, and you file it on its own BC return, not your T1.
The rates:
- 365 days or less: 20% of net taxable income.
- Day 366 to day 729: the rate falls in a straight line.
- 730 days or more: no tax.
How it's calculated, in the province's four steps
- Taxable income. The sale proceeds, minus the cost to acquire the property, minus eligible costs to improve it.
- Net taxable income. Taxable income, minus the primary residence deduction if you qualify. It can't go below zero.
- Rate. 20% if you owned the property 365 days or less. From 366 to 729 days it's 20% × [1 − (days held − 365) ÷ 365], rounded to three decimal places.
- Tax. Rate × net taxable income.
The province's own example. Jacqueline bought a home for $900,000 on December 1, 2023. She added $10,000 of new appliances and sold for $1,000,000 on January 1, 2025, 398 days later.
- Her taxable income is $90,000.
- The primary residence deduction brings it to $70,000.
- Her rate is 18.192%, so she owes $12,734.40.
Had she owned it 365 days or less, there'd be no deduction and a 20% rate. She'd owe $18,000. The calculator reproduces both numbers.
Counting the days
The province counts inclusively: start with the day you bought and end with the day you sold. December 1, 2023 to January 1, 2025 is 398 days by that count, one more than simple subtraction gives. On a property you bought, both dates are completion dates, not the dates you signed the contracts.
Presale contracts are the exception. For a presale, the clock starts on the day you signed the contract with the developer, and completing the purchase doesn't restart it. So a presale bought in 2022 that completes in 2026 can usually be sold right away without BC flipping tax. The contract was signed more than 730 days earlier.
Because a single day can move you into a different rate, or past the 365-day threshold, confirm the day count with your lawyer before you set a completion date.
What you can and can't deduct
Costs to acquire. The province's definition includes:
- the purchase price and property transfer tax
- legal and appraisal costs
- Land Title Office registration fees
- a licensed home inspection
- title insurance and survey costs
- GST paid on the purchase
- documents your home insurer required
Costs to improve. Improvements of a lasting nature, including new major appliances. Selling costs such as commission and legal fees come off the proceeds.
What doesn't count:
- mortgage interest
- property tax, strata fees and insurance
- financing costs of improvements
- routine repairs and maintenance
That has a real consequence. You can owe BC flipping tax on a sale that lost money once you count what it cost to hold the property. A $36,000 "profit" on paper can be close to break-even after a year of mortgage interest and strata fees. The calculator follows the province's rules, so carrying costs only appear in the sell-now-or-wait comparison.
The $20,000 primary residence deduction
If the property was your primary residence, meaning the place you lived longer than anywhere else while you owned it, you can deduct up to $20,000 from taxable income. You must have owned it for more than 365 days.
If you own part of the property, the deduction is reduced to your share. It isn't available on presale assignments.
This is not the federal principal residence exemption. It's a capped deduction, and on a big gain it only takes the edge off.
The day-365 cliff for homeowners
For someone selling their own home, the first anniversary is the most expensive date in the calendar. Two things change at once:
- The federal flipping rule stops treating the gain as fully taxable business income. It becomes a gain covered by the principal residence exemption.
- BC's $20,000 deduction becomes available, and its rate starts falling.
The calculator's default example: a townhouse bought for $860,000 on November 14, 2025, improved for $30,000, and sold as the owner's home for $975,000. The sale completes on October 30, 2026, day 351.
- Taxable income for BC is about $36,131.
- BC flipping tax at 20% is $7,226.
- The federal rule adds about $13,483 of income tax for someone earning $110,000.
- The total is about $20,710.
If the same sale completes on November 14, 2026 (day 366), there's no income tax, and the BC tax falls to about $3,217. Waiting 15 days saves about $17,500 in tax. After two weeks of carrying costs at $4,000 a month, that's still about $15,500 better off.
If you're selling your home in its first year, look at the completion date before you look at anything else. Buyers often have flexibility on completion, and a few extra weeks can be worth more than most price negotiations.
Renovators and investors
For someone who buys to renovate and resell, the picture is different. The profit is business income for income tax whatever the holding period, so the only saving from waiting is the BC tax, and carrying costs keep running.
Take a Surrey house bought for $1,150,000 in January 2026, renovated for $120,000, and sold for $1,420,000 in November 2026. The BC taxable income is about $83,650. The BC tax at 20% is $16,730, and income tax on business income for a $110,000 earner is about $33,258. Together that's roughly $50,000, or 60% of the profit.
Holding until day 730 would remove the $16,730 BC tax, but would cost another 14 months of carrying costs and market risk.
That's the point of the tax. It works less as a way to raise revenue and more as a way to make quick resales unattractive. If you're planning a renovation project, build the tax into your numbers from the start, or plan for a longer hold. Builders and renovators have some specific exemptions, but they're narrow and need a return to claim.
Presale contracts
Assigning a presale within 730 days of signing is taxable on the net income from the assignment: the lift, less eligible costs. The rates are the same, and there's no primary residence deduction.
The province's own example is a contract assigned within a year for $50,000 of net income, which owes $10,000.
In 2026 most assignments are of contracts signed in 2022 or 2023, and are often at a loss, so the tax rarely applies. It matters for anyone who signed in 2025 or later and wants out early. Switch the calculator to "A presale contract," or use the presale assignment calculator for the full deposit-recovery math.
Exemptions
Life events. The province recognizes life events that make a quick sale necessary, including:
- the death of the owner or a related person
- serious illness or disability
- separation or divorce
- a relocation for work or school
- involuntary job loss
- a change in household, such as a new child or a relative moving in
- a threat to personal safety
- insolvency
- the destruction or expropriation of the home
- certain presale completion delays
Almost all of these still require you to file a flipping tax return within 90 days of the sale to claim them. The Ministry of Finance decides whether they apply.
Exemptions that don't need a return:
- sales by charities, non-profits and governments
- properties on First Nations lands
- property used exclusively for a commercial purpose
Tick the exemption box in the calculator to see the result without BC tax. Then confirm with your lawyer or accountant that your situation actually qualifies, and gather the documents while they're easy to get.
Filing and paying
If the tax applies, or you're claiming an exemption that requires a return, you must file a BC home flipping tax return within 90 days of the sale and pay any tax owing. Late filing and late payment carry penalties and interest.
Keep records of everything that went into the calculation:
- both statements of adjustments
- receipts for improvements and appliances
- legal and inspection invoices
- proof of residence if you're claiming the deduction
You'll also report the sale on your federal and BC income tax return as usual, and the two are assessed separately. Ask your accountant how the flipping tax is treated there. Our capital gains calculator covers the income tax side in detail.
Before you list within two years of buying
- Count your days. Use the province's inclusive count from your purchase completion date, or from your contract date for a presale. Write down the dates for day 365, day 366 and day 730.
- Check for an exemption. If your reason for selling is a life event, gather the documents now: a job offer letter, a separation agreement, medical records.
- Collect your cost records. You'll need your purchase statement of adjustments, transfer tax paid, legal and inspection invoices, and receipts for improvements and appliances. Anything you can't document is hard to deduct.
- Run the sell-now-or-wait table. Use your real carrying costs. If waiting clearly wins, ask for a longer completion date in the listing, or accept an offer with a later completion rather than the highest price with a fast one.
- Talk to your accountant. Get advice on the income tax side, especially whether the federal flipping rule applies and how the BC tax is treated on your return.
- Diarize the 90-day filing deadline. It runs from the sale completion.
Mistakes we see with the flipping tax
Setting a completion date a few days short of the first anniversary. For homeowners, that can cost five figures in combined federal and BC tax.
Assuming carrying costs reduce the tax. Mortgage interest, property tax and strata fees don't count for BC.
Not filing because an exemption applies. Most exemptions still need a return within 90 days.
Counting days by subtraction. The province counts both the purchase day and the sale day.
Thinking completion resets a presale clock. For presales, the clock started when you signed.
Treating the $20,000 deduction like the federal exemption. It's a cap, not a full exemption.
Questions people ask us
What is the BC home flipping tax rate?
20% of net taxable income if you owned the property 365 days or less. From day 366 to 729 the rate is 20% × [1 − (days held − 365) ÷ 365], and from day 730 there's no tax.
Does the flipping tax apply if I sell my own home?
Yes, if you sell within 730 days and no exemption applies. You can deduct up to $20,000 if it was your primary residence and you owned it more than 365 days. The federal flipping rule may also apply to your income tax if you owned it less than 365 days.
How are the days counted?
Inclusively, from the day you bought to the day you sold, usually the completion dates. For a presale contract, the count starts on the day you signed the contract, and completion doesn't restart it.
Can I deduct mortgage interest and property taxes?
No. You can deduct the purchase price and eligible buying costs such as property transfer tax, legal fees, inspection and GST. You can also deduct lasting improvements and major appliances, and selling costs. Mortgage interest, property tax, strata fees, insurance and routine repairs aren't deductible.
What are the exemptions?
Life events including death, serious illness or disability, separation, relocation for work or school, involuntary job loss, household changes, personal safety, insolvency and destruction of the home. There are also exemptions for certain builders, related-person transfers, commercial property and exempt organizations. Most require filing a return.
Do I have to file if I don't owe anything?
If you sold within 730 days and are claiming most exemptions, yes: within 90 days of the sale. If your net taxable income is zero because there was no profit, confirm with the province or your accountant whether a return is still required in your situation.
Is the BC flipping tax the same as the federal flipping rule?
No. The federal rule treats gains on housing held less than 365 days as fully taxable business income on your income tax return, with no principal residence exemption. BC's tax is a separate provincial tax on sales within 730 days. Both can apply to the same sale.
Does the flipping tax apply to presale assignments?
Yes. It applies to net income from assigning a presale contract within 730 days of signing it, at the same rates, with no primary residence deduction.
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Selling within two years?
Dan structures the sale around the calendar: listing timing, a completion date that clears the right threshold, and terms buyers will accept. He'll loop in your accountant on exemptions. Your calculator inputs come along with the message.
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