B.C.'s speculation and vacancy tax rate increased for second straight year | Daily Hive

B.C. government increases speculation and vacancy tax rate for the second consecutive year

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The Government of British Columbia is increasing its Speculation and Vacancy Tax (SVT) rate for the second consecutive year — a move aimed at pushing more residential properties back into the housing market, discouraging speculative ownership, and increasing provincial government revenues.

As announced in today’s 2026 B.C. budget, the tax rate for foreign owners and untaxed worldwide earners — as well as other groups specified under the SVT — will rise by one per cent from the existing rate of three per cent to four per cent, effective Jan. 1, 2027.

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The new SVT rate will apply to taxes payable based on the use of residential properties during the 2027 calendar year and onward. The provincial government noted the change will not affect declarations based on property use in 2026 or earlier years. The 2026 tax year rate will continue to be three per cent.

The SVT was first introduced in 2018 to encourage property owners to either live in their homes or rent them out, rather than leaving units vacant or holding them primarily as investment assets.

In 2018, the introductory rate for the SVT was 0.5 per cent of the property’s assessed value for all properties deemed to be subject to the tax.

Between 2019 and 2025, SVT had rates of two per cent for foreign owners and untaxed worldwide earners and 0.5 per cent for Canadian citizens or permanent residents of Canada who are not untaxed worldwide earners.

Then in 2026, it was increased to three per cent for foreign owners and untaxed worldwide earners and one per cent for Canadian citizens or permanent residents.

The provincial government’s annual SVT declarations are due on March 31. Over 99 per cent of B.C. residents are typically exempt each year, but all homeowners in the SVT’s taxable areas must declare. People who live in their property, rent it out for at least six months, or meet other exemption criteria do not have to pay the tax. B.C.’s SVT declaration is separate from the City of Vancouver’s Empty Homes Tax (EHT) declaration, which is due in early February each year.

At a four per cent rate, the SVT would amount to roughly $88,000 per year on the average single-family detached home in Vancouver, based on a property value of $2.21 million, and approximately $20,000 per year on an average Vancouver townhome or condominium valued at $806,000, according to BC Assessment’s July 2025 roll.

The 2026 budget estimates SVT revenues will go up from $105 million in the 2025/2026 fiscal year to $161 million in 2026/2027 and $184 million in both 2027/2028 and 2028/2029.

Additionally, there are increases to the provincial property tax of the School Tax, Speculation and Vacancy Tax (SVT) and B.C.’s Personal Income Tax, and changes to the Property Tax Deferment Program. As well, the PST is being significantly expanded to cover a wider range of professional services related to architectural design, building development, and real estate transactions, specifically commissions related to buying and selling non-residential real estate.

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