Understanding BC’s Speculation & Vacancy Tax: What Homeowners Need to Know

British Columbia’s Speculation and Vacancy Tax was introduced to help address housing affordability by discouraging vacant homes and encouraging long-term rentals. If you own a home in certain parts of BC, it's important to understand how this tax works, who it applies to, and the steps you need to take to comply.

What is the Speculation & Vacancy Tax?

The Speculation and Vacancy Tax is an annual tax applied to residential properties that are left vacant for most of the year. It was designed to free up empty homes and increase rental availability in high-demand urban areas. Even if you don’t owe any tax, all homeowners in affected areas must complete a declaration each year to confirm their exemption status.

Where Does the Tax Apply?

This tax applies to properties located in the following designated urban areas:

• Metro Vancouver (including Vancouver, Burnaby, Richmond, Surrey, Coquitlam, Langley, and more)

• Capital Regional District (Victoria, Saanich, Langford, and surrounding areas)

• Kelowna & West Kelowna

• Nanaimo & Lantzville

• Chilliwack, Abbotsford, & Mission

Some rural areas and smaller communities are exempt from the tax. To check if your property is affected, visit gov.bc.ca/spectax.

Who Has to Pay the Tax?

The tax applies to homeowners who don’t live in their property for at least six months of the year and who don’t rent it out long-term (for at least 30 days at a time).

How Much is the Tax?

• 0.5% of the home’s assessed value for most Canadian owners.

• 2% of the assessed value for foreign owners and satellite families.

Who is Exempt?

Many homeowners will qualify for an exemption, including those who:
✅ Use the property as their primary residence
✅ Rent it out to long-term tenants (at least six months of the year)
✅ Have extenuating circumstances (such as medical reasons or recent home purchases)

What Do You Need to Do?

✅ Declare your status every year—even if you qualify for an exemption!
✅ The deadline to declare for the 2024 tax year is March 31, 2025.
✅ You can complete your declaration online at gov.bc.ca/spectax.

Failing to declare on time may result in the tax being charged, even if you qualify for an exemption.

Stay Informed

The Speculation and Vacancy Tax is an important part of BC’s efforts to improve housing availability. Whether you’re a homeowner, investor, or renter, understanding how this tax works can help you make informed decisions about your property.

For full details and to submit your declaration, visit gov.bc.ca/spectax.

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