Speculation and Vacancy Tax: What Is This and Who Is Affected

If you are a homeowner in certain areas of BC, you may receive a letter to declare whether your home was vacant during the previous year. This declaration pertains to the speculation and vacancy tax. The speculation and vacancy tax is a provincial tax designed to support affordable housing in the areas where the tax applies. This tax applies based on how property owners use their property, the residency status of the owner, and where the owner earns and reports their income.

The tax is applicable for homeowners in specific designated areas. Here is a full list of taxable areas. If you own a property in one of the above designated areas, you must complete an annual declaration of residency status and the use of your property. This declaration is due annually on March 31, based on your use of the property in the previous year. Homeowners should receive a declaration letter in January or February outlining the process. Note that each owner is required to file their own declaration, even if the owners are spouses.

Who has to pay the speculation and vacancy tax? The tax targets those who are foreign owners (people who are not Canadian citizens or Permanent Residents) or owners of vacant homes that sit unoccupied and not rented out for a period of at least half the year. Depending on your status and use of the property, you may pay differing tax rates up to 2% of the property’s assessed value as of 2026. There are exemptions to the tax which can be found here, along with more information about how the speculation and vacancy tax works.

If property-related taxes are affecting your cash flow or future plans, a financial review can help you assess your situation. Our team is here to help. Contact us to learn more.