Summary

• The speculation and vacancy tax curbs market speculation, frees housing for people in British Columbia
• Homeowners in tax areas must complete their declarations before March 31, 2026 deadline
• For declarations completed in 2027, the tax increases to 3% for foreign owners and untaxed worldwide owners, 1% for Canadian citizens and permanent residents

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Declaration letters are being mailed out starting this month to all homeowners in speculation and vacancy taxation areas of B.C.

The letters include the information people need to complete their declarations by March 31, 2026, and qualify for an exemption.

Funding homes for people

“Every owner who declares their property is part of the solution to ensure that homes aren’t sitting empty, but are available for people to rent or buy,” said Brenda Bailey, Minister of Finance. “By continuing this work, we are delivering affordable housing for renters, not repeating the mistakes that opened our market to speculators.”

The speculation and vacancy tax (SVT) raised nearly $80 million in 2024, all of which helps fund more affordable housing initiatives in regions where it applies. Projects funded with help from speculation and vacancy tax revenue include affordable rental homes for families, seniors and people living with disabilities. Revenue from the tax also helps fund housing for Indigenous families, Elders and individuals with low incomes.

“Renters need good housing they can afford, and our housing initiatives are making that happen. Vacancy rates in Metro Vancouver and Greater Victoria are the highest they’ve been in decades and rents are going down,” said Christine Boyle, Minister of Housing and Municipal Affairs. “The speculation and vacancy tax helps ensure there is more housing for teachers, health-care workers and all the people who keep our province going.”

More than 99% of B.C. residents are exempt, but all homeowners in taxable areas must declare. Most people who live in their property, rent it out for six months or more, or meet other exemption criteria will not have to pay the tax.

Increased rates and tax credits

For declarations made in 2027, foreign owners and owners with most of their income unreported in Canada will be subject to a tax rate of 3%, up from 2%. Canadian citizens and permanent residents with empty or underused homes will pay a rate of 1%, up from 0.5%. This is based on independent advice that increasing the SVT rates may further motivate people to use, rent or put their empty homes on the market.

SVT credits are available to those who don’t qualify for any of the more than 20 exemptions from the tax.

This tax is part of B.C.’s Homes for People plan to increase housing supply, speed up new home construction and fight speculation.

Quick Facts:

• The tax applies in 59 communities: https://map-spec-tax-areas.apps.gov.bc.ca/.
• In the 2024-25 fiscal year, the B.C. government invested $1.9 billion toward housing in the SVT-specified areas.
• A recent Rentals.ca report shows asking-rent prices are steadily declining in B.C., with particularly high declines in SVT areas, such as New Westminster, Vancouver and Surrey.
• Together with other housing measures, the speculation and vacancy tax has helped add more than 20,000 units to the long-term rental market in Metro Vancouver since 2018.

Learn More:

• For more about the speculation and vacancy tax, visit: www.gov.bc.ca/spectax  
• To learn how B.C. is working to deliver more homes people can afford, visit: https://gov.bc.ca/HomesForPeople