For most BC homeowners, the speculation and vacancy tax is just a declaration to fill in each winter. For owners of a second home, a cabin in the Okanagan, a condo kept empty, or a place rented only short-term, it's a real annual bill. For 2026 that bill doubled. The rates went to 1% and 3%, the BC resident credit went to $4,000, and Budget 2026 has already set a 4% rate for foreign owners from 2027. The calculator works it out owner by owner, the way the province does.
What the tax is
The speculation and vacancy tax (SVT) is an annual provincial tax on residential property in designated areas of BC. It's based on each owner's share of the BC Assessment value and on how the property was used during the calendar year. Ownership is determined as of December 31.
Every owner on title must file a declaration each year, even if they're exempt. That includes each spouse, and each co-owner. Most owners are exempt because the property is their principal residence or it's rented long term. The tax falls on homes that are empty or used part-time, and on owners whose income is mostly earned outside Canada.
Where it applies
The tax covers 59 communities. The original 2018 areas were:
- most of Metro Vancouver
- most of the Capital Regional District
- Abbotsford, Chilliwack and Mission
- Kelowna and West Kelowna
- Nanaimo and Lantzville
Later expansions added:
- Squamish, Lions Bay, and the Cowichan Valley towns of Duncan, North Cowichan, Ladysmith and Lake Cowichan
- from the 2024 tax year, Kamloops, Salmon Arm, Vernon, Coldstream, Penticton, Summerland, Lake Country, Peachland, Courtenay, Comox, Cumberland, Parksville and Qualicum Beach
Resort municipalities such as Whistler, Tofino and Osoyoos are still outside it, along with the Sunshine Coast and the Gulf Islands.
Boundaries matter. Some electoral areas and islands within the regional districts are excluded. Use the province's interactive map to check a specific address before relying on the calculator's area list.
Rates for 2025, 2026 and 2027
| Tax year | Canadian citizens and PRs | Foreign owners and untaxed worldwide earners | BC resident credit (max) |
|---|---|---|---|
| 2025 | 0.5% | 2% | $2,000 |
| 2026 | 1% | 3% | $4,000 |
| 2027 and later | 1% | 4% | $4,000 |
The 2026 increase was announced in 2025. The 2027 increase for foreign owners and untaxed worldwide earners came in Budget 2026. It applies to use in the 2027 calendar year onward, so it first shows up on declarations filed in early 2028.
The province says the tax raised $79.6 million in 2024. It credits the SVT, together with other measures, with adding more than 20,000 units to Metro Vancouver's long-term rental market since 2018.
Which rate is yours
- Canadian citizens and permanent residents pay the lower rate, whether they live in BC or elsewhere in Canada. Confirmed BC Provincial Nominees are treated similarly.
- Foreign owners pay the higher rate. That means owners who are neither citizens nor permanent residents.
- Untaxed worldwide earners also pay the higher rate. This is the category that catches satellite families: a household where more than half of the combined income of the owner and their spouse isn't taxed in Canada.
Each owner is assessed separately on their own share. A Canadian and a foreign owner holding a property 50/50 can owe different amounts, and one may be exempt while the other isn't.
The BC resident credit, and how ownership splits it
Owners who are BC residents for income tax, are citizens, permanent residents or confirmed provincial nominees, and aren't untaxed worldwide earners, get a non-refundable credit automatically. It's up to $4,000 from 2026, and it's prorated by ownership share. A 50% owner gets up to $2,000. A 25% owner gets up to $1,000.
The credit can't be carried forward or transferred to a spouse. It only reduces tax on the property it's claimed against, to a minimum of zero.
In practice, a sole BC-resident owner pays no SVT on a second home assessed at $400,000 or less. Above that, they pay 1% of the value over $400,000.
A Kelowna vacation condo assessed at $620,000, owned 50/50 by a Vancouver couple and not rented:
- 2026: each owner's tax is $3,100 before the credit, minus a $2,000 credit, for $2,200 in total.
- 2025: the same condo cost $1,100.
A sole BC-resident owner of a $1,000,000 second home pays $6,000 for 2026, up from $3,000 in 2025.
A foreign owner of a $1.2 million vacant Metro Vancouver condo pays $36,000 for 2026 and $48,000 for 2027. In the City of Vancouver, the municipal Empty Homes Tax comes on top of that.
Owners who aren't BC residents may be able to apply for a separate credit for other owners after they receive their notice of assessment. It has its own conditions.
Exemptions
Principal residence. An owner is exempt for the home they live in as their principal residence. Spouses generally have one principal residence between them, unless there's a specific reason for two, such as work or medical care. Untaxed worldwide earners face tighter limits.
Tenancy. An owner is exempt if the property was occupied by tenants for at least six months of the year, in tenancies of at least a month each. The details:
- Arm's-length tenants need a written tenancy agreement.
- Family members and other non-arm's-length tenants don't need a written agreement or to pay rent, but they must actually live there. Foreign owners face extra conditions here.
- Your spouse, or your minor child living with you, can never be your tenant.
- Short-term vacation rentals don't count toward the six months.
Construction, renovation and damage. A property that's uninhabitable for at least 90 days because of construction or renovation can be exempt, provided the work is moving ahead without undue delay. So can a property damaged by a disaster or hazard and uninhabitable for 60 consecutive days.
Other circumstances. There are also exemptions for:
- the year of an owner's death, and the following year
- separation
- time spent in hospital or a care facility
- being temporarily away for work
- a handful of other situations
Some can only be used once every several years.
Shared ownership. Each owner claims their own exemption. The province's own example is a parent and adult child who co-own a home the child lives in. The child claims the principal residence exemption, and the parent claims the tenancy exemption for a non-arm's-length tenant.
Declaring and paying
Declaration letters, with the codes you need, arrive early in the year. The declaration for a tax year is due by March 31 of the following year. For 2026, that's March 31, 2027. Any tax is due in early July.
If you don't declare, you can be assessed as though no exemption applies. From the 2027 tax year, Budget 2026 also adds a $250 non-refundable penalty for declaring late.
Budget 2026 made one more change worth knowing. If your own declaration says no exemption applies, you can no longer appeal the resulting assessment for the 2023 to 2025 tax years. Check the exemption questions carefully before you submit. It's easy to answer them wrongly on a property that actually qualifies.
SVT, the Vancouver Empty Homes Tax, and the federal UHT
- SVT. This is the provincial tax.
- Vancouver Empty Homes Tax. The City of Vancouver charges it separately, with its own declaration and rules. A vacant home in Vancouver can owe both. Our Empty Homes Tax calculator covers it.
- Federal Underused Housing Tax. The UHT has been eliminated from the 2025 calendar year onward, but returns and any tax for 2022 to 2024 are still owed.
Pay it, rent it, or sell it
For a BC resident with a modest second home, the credit may still keep the tax at zero or close to it. The calculator shows where you stand.
Once the bill is meaningful, the usual options are:
- Rent it for six months or more in monthly or longer tenancies. Many Okanagan and Island owners rent from fall to spring and keep the summer.
- Make it a family member's home under the non-arm's-length tenancy rules.
- Make it your principal residence.
- Sell it.
If you rent, the rental income is taxable and BC's Residential Tenancy Act applies. Short-term rentals won't help, and BC's short-term rental rules may restrict them anyway.
If you're weighing a sale, our capital gains calculator shows the tax on selling a second home.
Which value is used
The tax is based on the assessed value on BC Assessment's roll for the tax year. That's the value on the notice owners receive each January. It reflects market value as of July 1 of the year before.
Because the SVT is a percentage of that value, a lower assessment lowers the tax. With Metro Vancouver prices down in 2025 and 2026, many 2026 assessments came in lower than the year before. That softens, but for most owners doesn't cancel, the doubled rate.
If you think your assessment is too high, the time to appeal it is in January and February, through BC Assessment. The SVT follows whatever value ends up on the roll.
Buying a second home or cabin in 2026
Check the map before you fall in love with the view. Boundaries can put two otherwise similar properties on opposite sides of the line:
- Kelowna and Lake Country are taxable, while Osoyoos isn't.
- Squamish is taxable, while Whistler isn't.
- Parksville and Qualicum Beach are taxable, while the Gulf Islands aren't.
The price difference between a taxable and a non-taxable location may already reflect this, but the ongoing cost won't show up anywhere else.
For a BC resident buying a second home in a taxable area, the numbers are simple:
- Up to $400,000 of assessed value: no SVT, thanks to the credit.
- Above that: about $1,000 a year for each additional $100,000 of assessed value, unless you rent it long-term for at least six months or it becomes someone's home.
Build that into the purchase decision alongside strata fees, property tax and insurance. Buyers who plan to rent part of the year should also check strata bylaws and BC's short-term rental rules before assuming any rental income.
Mistakes we see with the SVT
Not declaring because you're exempt. Every owner has to declare every year, exempt or not.
Assuming the credit is $4,000 per couple, per owner. It's $4,000 per owner, prorated by ownership share. A 50/50 couple gets $2,000 each.
Counting Airbnb nights toward the six months. Only tenancies of a month or longer count.
Answering the exemption questions too quickly. For 2023 to 2025, an assessment based on your own "no exemption" answer can't be appealed.
Forgetting the Vancouver Empty Homes Tax. In the city, it's a second declaration and potentially a second bill.
Budgeting on 2025 rates. The rates doubled for 2026.
Questions people ask us
What is the speculation and vacancy tax rate for 2026?
1% of assessed value for Canadian citizens and permanent residents, and 3% for foreign owners and untaxed worldwide earners, applied to each owner's share. The BC resident credit rises to $4,000. From 2027, the 3% rate rises to 4%.
Do I have to declare if I live in my home?
Yes. Every owner of residential property in a taxable area must declare each year, even if exempt. For the 2026 tax year, the deadline is March 31, 2027.
How does the $4,000 credit work for couples?
It's prorated by ownership share. Two owners with 50% each get up to $2,000 each. It's non-refundable, can't be carried forward, and can't be transferred to a spouse.
How long do I have to rent my property to be exempt?
At least six months of the calendar year, in tenancies of at least a month each. Arm's-length tenants need a written agreement. Short-term vacation rentals don't count.
Does the speculation tax apply in Whistler or on the Sunshine Coast?
No. Resort municipalities such as Whistler, Tofino and Osoyoos, the Sunshine Coast and the Gulf Islands are outside the taxable areas. Check the province's map for any specific address.
What is an untaxed worldwide earner?
An owner whose household, meaning them and their spouse, earns more than half of its combined income from sources not taxed in Canada. They pay the higher rate. The category is aimed at satellite families.
What happens if I miss the March 31 declaration deadline?
You can be assessed as though no exemption applies, with interest and penalties. From the 2027 tax year, Budget 2026 adds a $250 non-refundable late declaration penalty.
Do I still need to file the federal Underused Housing Tax?
Not for 2025 or later. It was eliminated from the 2025 calendar year. Returns and tax for 2022 to 2024 still apply if you were required to file.
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