The Speculation and Vacancy Tax

Common questions about the SVT

• What is BC’s Speculation and Vacancy Tax?+

  It’s a yearly tax on residential property in certain parts of BC, charged on the home’s assessed value. It was introduced in 2018 to discourage owners from leaving homes empty in regions where housing is tight. The thing to know up front is that most owners owe nothing — if you live in the home, or rent it long-term, you’re generally exempt. But there’s a catch worth its own answer below: even when you’re exempt, you still have to file a declaration every year.
• What are the 2026 rates?+

  For Canadian citizens and permanent residents who report most of their income in Canada, the rate is 1% of the assessed value (doubled from 0.5% for the 2026 tax year). For foreign owners and "satellite families" — households that hold property here but report little or no income in Canada — the rate is 3% (doubled from 2%). Both rates only apply after exemptions, so a principal residence or a properly tenanted rental typically owes nothing regardless of who owns it. Because the rates changed recently, it’s worth confirming the current figure on gov.bc.ca before relying on it.

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  The increase comes from the 2024 provincial budget and takes effect for the 2026 tax year (declared in early 2027). For context, before 2026 the rates were 0.5% (citizens/PR) and 2% (foreign owners and satellite families). A "satellite family" is broadly a household that earns the majority of its income outside Canada and so reports little taxable income here — the Province applies the higher 3% rate to that group as well as to foreign owners. The authority is the gov.bc.ca Speculation and Vacancy Tax tax-rates page; confirm the live figure there before using it for any specific situation.
• Who is exempt — and how do I make sure I qualify?+

  The two big exemptions cover most people. First, your principal residence — the home you actually live in. Second, a long-term rental — a home rented to a tenant for at least six full months of the calendar year (short-term and vacation rentals don’t count). There are also exemptions for the year you buy, for owners in hospital or care or away for medical reasons, and for genuinely uninhabitable homes under major renovation. If your home is your residence or a real long-term rental, you’re almost certainly in the clear — you just have to declare it.
• Do I really have to file a declaration even if I owe nothing?+

  Yes — and this is the single most important line in this guide. Every owner of residential property in a designated area must file a declaration each year, exempt or not. If no declaration is on file by the deadline (usually late March), the system charges you at the top 3% rate by default, and you then have to object to get it back. The Province mails a declaration letter to every owner in early February with the codes you need; if it doesn’t arrive, you can declare online or call 1-833-554-2323. Missing the declaration costs far more than any rate change — it’s the thing that catches owners every single year.
• Does the tax apply everywhere in BC?+

  No — only in designated "taxable areas," not provincewide. The list has grown several times since 2018 and now covers most of urban Metro Vancouver, Greater Victoria, Nanaimo and Lantzville, Kelowna and West Kelowna, the Fraser Valley urban centres (Abbotsford, Mission, Chilliwack), Squamish, Lions Bay, and a number of others. It’s set by municipality, not by neighbourhood, so a property just outside a covered city may not be subject at all. Always check the current designated-areas list on gov.bc.ca for a specific address before assuming either way.