BC home flipping tax means more homes for people, not investments for speculators (flickr.com)

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Ministry of Finance

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How B.C. is helping people into affordable homes

The B.C. home-flipping tax:

  • The B.C. home-flipping tax targets investors who use the housing market as a stock market and drive up prices.
  • Profit from a residential property resold within two years of its purchase will be subject to this tax.
  • The tax includes exemptions for life circumstances, such as divorce, death, illness, relocation for work, job loss or a change in household membership.
  • Builders adding to housing supply, such as building housing on vacant residential property or adding an additional suite or housing unit to a property that already has a home, will also qualify for an exemption.
  • All sellers that have sold a property within 729 days of purchasing are obligated to file a B.C. home-flipping tax return within 90 days of the sale even if they are exempt, or they might be subject to a penalty.

First-time home buyers’ program:

  • The first-time home buyers’ program allows qualifying individuals to claim an exemption from the property transfer tax on their first home.
  • As of April 1, 2024, the threshold increased from $500,000 to $835,000, with the first $500,000 being exempt from property tax.
  • A reduced exemption is available for homes between $835,000 and $860,000.

Newly built home exemption:

  • As of April 1, 2024, people moving up the property ladder into newly constructed homes are benefiting as the threshold for the newly built home exemption increased from $750,000 to $1.1 million.
  • This program reduces the cost of newly built homes for qualifying buyers, helping to encourage development by making it easier for people to buy new homes.

Purpose-built rental exemption:

  • Purpose-built rental buildings must meet certain criteria, such as being non-stratified and held as rentals for at least 10 years.
  • The residential portion of the building must be entirely used for rental purposes and have at least four apartments.
  • Purchasers of a purpose-built rental building will be able to save hundreds of thousands of dollars, depending on the purchase price, in general property transfer tax on qualifying purpose-built rental buildings bought between Jan. 1, 2025, and Dec. 31, 2030.
  • This means those purchasing a purpose-built rental building valued at $10 million could save $278,000 in general property transfer taxes.