BC Speculation and Vacancy Tax Guide

The Speculation and Vacancy Tax was introduced by the Government of BC to reduce the number of vacant homes in BC’s major urban centres.

In Metro Vancouver, this annual tax applies to all residential property owners, excluding Bowen Island.

All property owners in taxable regions must complete a declaration, even if they are eligible for an exemption.

Who is exempt from the Speculation Tax?

In general, property owners are eligible for an exemption if the property is:

• Principal residence
• Occupied by a tenant for at least six months of the year (short-term rentals under one-month do not count)
• Uninhabitable, under construction, or undergoing extensive renovations
• Purchased or inherited during the taxable year
• Vested in a trustee in bankruptcy

Or, in one or more of the following scenarios:

• Owners separated during the taxable year
• Owner, partner, or child temporarily relocated for medical treatment
• Recent death of an owner

For detailed exemption rules, visit the Exemptions for Individuals page on the Government of BC Speculation and Vacancy Tax website.

What should I know about tenants and the Speculation Tax?

The Government of BC distinguishes between Arm’s Length and Non-Arm’s Length Tenants, and provides different rules depending on ownership status:

1. Arm’s Length Tenant

• Exemption applies if the tenant pays rent, has a written tenancy agreement, and treats the property as their principal residence

2. Non-Arm’s Length Tenant / Canadian or Permanent Resident Owner

• Exemption may apply even if rent is not paid or no written agreement exists, as long as the tenant resides in the property most of the time
• Spouses or children cannot be considered tenants

3. Non-Arm’s Length Tenant / Foreign Owner

A foreign owner with a Non-Arm’s Length Tenant can qualify for a tax exemption if at least one tenant meets all of the following criteria:

• A Canadian citizen or permanent resident
• A resident of BC for income tax purposes at the end of the last day of the calendar year
• Not be an untaxed worldwide earner (where the majority of income combined with spouse is earned outside of Canada and not reported on a Canadian tax return), and
• Has a BC income for the calendar year that is equal to or greater than three times the annual fair market rent for the entire residential property.

4. Non-Arm’s Length Tenant / Canadian and Foreign Co-owners

• Exemptions are determined individually for each owner based on their status.

For a more detailed breakdown of the tenancy exemptions, visit the Tenancy Requirements page on the Government of BC Speculation and Vacancy Tax website.

What is the current BC Speculation Tax rate? 

If an owner does not qualify for an exemption, the BC Speculation Tax is as follows:

2019 – 2025

• Canadian citizen or permanent resident: 0.5% of assessed property value
• Foreign owner or member of a satellite family: 2% of assessed property value

2026 and beyond

• Canadian citizen or permanent resident: 1%
• Foreign owner or member of a satellite family: 3%

Key Dates for 2026:

• February 2026: Declaration arrives via mail
• March 31, 2026: Declaration due
• July 2, 2026: Tax payment due (if applicable)

How do I complete the Speculation Tax declaration? 

The declaration can be completed online at the Government of BC Speculation & Vacancy Tax website, or via phone at 1.604.660.2421 or 1.833.554.2323 (toll-free) 

Important Reminders:

1. Each named owner must complete a separate declaration, even as a spouse.
2. To declare on time and avoid penalty, ensure the mailing address on file with BC Assessment is up-to-date.

Additional Resources

The BC Speculation and Vacancy Tax continues to evolve on a yearly basis. Note that this tax is separate from the Government of Canada’s Underused Housing Tax and the City of Vancouver’s Empty Homes Tax. If you have questions about how these taxes may apply to your investment property, call us at 604.260.9955.