BC Empty Home Tax Calculator 2023
What is the BC Speculation and Vacancy Tax?
The BC Speculation and Vacancy Tax is an annual tax that is determined based on how you use your property. The amount varies depending on the homeowner’s resident status in Canada. This tax helps the BC provincial government address the housing crisis through supporting affordable housing initiatives and turning empty homes into affordable housing for British Columbians.
How is my empty home tax calculated?
BC Speculation and Vacancy Tax Rates
Last updated in December of 2019, the speculation tax in B.C. is:
- 0.5% for Canadian citizens and permanent residents
- 2.0% of the property’s assessed value for foreign owners, satellite families, and other non citizens or PR
For example, a foreign owner or satellite family’s property with an assessed value of $1M would pay $20,000 a year in speculation tax. A Canadian citizen or permanent resident would pay $5,000 in tax per year for a similar $1M property.
Property Owner’s Residence Status
A foreign owner is someone who is not a Canadian citizen nor permanent resident of Canada. A satellite family (also known as an untaxed worldwide earner) is an individual or spousal unit who earns the majority of their worldwide income outside of Canada, regardless of citizenship status. This means that if you are a Canadian citizen or permanent resident earning the majority of your income outside of Canada, you would be classified as a satellite family for the purposes of BC speculation tax and you would be taxed at the satellite family rate.
Taxable Regions
The BC Speculation and Vacancy Tax was originally introduced for properties in the following areas:
- Capital Regional District (CRD)
- Metro Vancouver Regional District
- City of Abbotsford
- City of Chilliwack
- City of Kelowna
- City of Nanaimo
- City of West Kelowna
- District of Lantzville
- District of Mission
From 2023, the BC Speculation and Vacancy Tax will also be applicable to properties within:
- City of Duncan
- District of North Cowichan
- District of Squamish
- Town of Ladysmith
- Town of Lake Cowichan
- Village of Lions Bay
Homeowners in these areas will declare their property status for the first time in January 2024.
Vancouver homeowners are responsible for both the BC Speculation and Vacancy Tax and the Vancouver Empty Home Tax.
If you live in British Columbia outside of the taxable regions listed, you are not required to pay the speculation and vacancy tax.
When and How to Declare for the Speculation and Vacancy Tax
If you own a residential property in any of the areas listed above, you are required to complete a declaration for the BC speculation tax once early at the beginning of each year. You can declare online or over the phone after you receive your declaration letter. The top right hand corner of your declaration letter will contain your Letter ID and Declaration Code, which you will need to complete the declaration. All declaration letters will be mailed out between the months of January and February by the Government of British Columbia. The declaration must be completed by the end of March, and the speculation tax for the prior year must be paid in July. For example, the declaration for 2023 must be completed by the end of March 2024 and the speculation tax must be paid in July 2024.
If the property has multiple owners, each individual is required to make a separate declaration, even if the other owners are relatives or spouses. Documents you will need to complete the declaration as an individual include:
- The declaration letter that was mailed to you (it contains the Letter ID, Declaration Code, and a list of all the properties you own)
- Your SIN number
- Your date of birth
Common Speculation Tax Exemptions
Some common speculation tax exemptions include the principal residence and tenancy exemptions. Individuals may be exempt from the BC Speculation Tax if it is their principal residence. If you own multiple properties, you may only claim one property as your principal residence. Spousal units can only claim separate principal residences if they are living apart for work reasons, medical reasons, or are divorced or separated. You may also be exempt from the Speculation Tax if your property is occupied by a tenant for more than six months in the calendar year. You can find more information on the BC Government's website.
History and Impact
The Speculation and Vacancy Tax was introduced by the British Columbia government on December 31, 2018, at the peak of the real estate crisis. The initial rate was 0.5% of the property’s assessed value per year for all properties within the targeted regions.
In the most recent 2019 update, the speculation tax was raised to 2.0% for foreign owners and satellite families but remained at 0.5% for Canadian Citizens and permanent residents who earned the majority of their income within Canada.
According to SVT Technical Briefing for the tax year 2021 (released in November 2022), the province generated $78.4 million in revenue from the Speculation and Vacancy Tax in the year. There were 10.3% fewer properties paying this tax in 2021 compared to 2020. The report also mentions that since 2017, the tax revenue has helped fund nearly 36,000 affordable homes that are already constructed or are underway.
