BC Speculation and Vacancy Tax: Who Pays, Rates, Exemptions and the March 31 Declaration

The Speculation and Vacancy Tax is an annual provincial tax based on how owners use residential properties in the areas of B.C. most affected by the housing shortage. The province says it is designed to turn vacant homes into housing for people in British Columbia and to make sure foreign owners and those with primarily foreign income contribute fairly to B.C.'s tax system.

Owners who live in their own home may be able to claim the principal residence exemption, but you still have to declare to claim it. This guide covers where the tax applies, the current rates, the exemptions most relevant to Lower Mainland owners, how to declare, and what the province says about payment. This is general information, not legal or tax advice. Check the official pages listed at the bottom before you file.

Does the tax apply in Surrey, Langley, Delta and White Rock?

Yes. The province's list of taxable areas for the Metro Vancouver Regional District includes:

• City of Surrey
• City of Langley and Township of Langley
• City of Delta
• City of White Rock
• City of Vancouver, City of Burnaby, City of Richmond, City of New Westminster
• City of Coquitlam, City of Port Coquitlam, City of Port Moody, Village of Anmore, Village of Belcarra
• City of Maple Ridge, City of Pitt Meadows
• City of North Vancouver, District of North Vancouver, District of West Vancouver
• University Endowment Lands and UBC lands

The list also includes communities outside Metro Vancouver, such as the Capital Regional District (for example Victoria, Saanich and Langford), Abbotsford, Chilliwack, Mission, Kelowna, West Kelowna, Nanaimo, Lantzville, Duncan, North Cowichan, Ladysmith, Lake Cowichan, Squamish and Lions Bay. The province has an interactive location map, linked from its taxable areas page, that you can use to check whether your property is in a designated taxable area.

Only owners of property classed as residential, in a designated taxable area, must complete a declaration. Reserve lands, treaty lands and lands of self-governing Indigenous Nations are not part of the taxable areas.

Tax rates for 2025, 2026 and 2027

The rate depends on the owner's tax residency and on whether the owner is a Canadian citizen or permanent resident, or an untaxed worldwide earner (a category of taxpayer that includes members of a satellite family). The tax applies based on ownership as of December 31 each year.

The tax is a percentage of the property's assessed value. The 2026 rates apply to tax payable based on how the property is used during the 2026 calendar year and do not change the tax for 2025 or earlier years.

If a property has more than one owner, the tax owed is divided among the owners based on each owner's ownership share. For a corporation, trustee or business partner, the rate is the highest rate that would apply to any of the corporate interest holders, beneficial owners or business partners if they held the property individually.

Who has to declare

Residential property owners in the designated taxable areas declare every year, even if there is no change to their information. If you own residential property in a designated taxable area, the province mails you a declaration letter explaining how to complete your declaration. If you own multiple properties, you may receive separate letters. The Letter ID and Declaration Code are at the top right corner of the letter.

Some owners are always exempt and do not need to complete a declaration. The province lists these as Indigenous Nations and corporations owned by an Indigenous Nation, registered charities, housing co-ops, municipalities, regional districts, governments and other public bodies, and certain government-owned corporations.

How and when to declare

You must complete your declaration by March 31. The Speculation and Vacancy Tax Act sets the due date as March 31 in the year after the calendar year, unless the administrator extends it. For the 2025 calendar year that means March 31, 2026, and for 2026 it means March 31, 2027.

• Online: use the "Declare now" link on the province's Speculation and Vacancy Tax page, with your Letter ID and Declaration Code. The province says it only takes a few minutes and is faster than calling.
• Phone: 1-833-554-2323 toll-free, or 1-604-342-1015 if you are outside North America. Agents are available 8:30 am to 5:00 pm Pacific Time, Monday to Friday, and translation services are available. For TDD service, dial 711 across B.C.

The province sends a Notice of Assessment showing the amount of tax you owe, including penalties and interest if applicable. The tax is due on the first business day in July (July 2 in 2026), and you can pay any time after you receive the Notice of Assessment.

Common exemptions

Owners in taxable areas may be eligible for an exemption. When more than one owner is on title, each owner claims their own exemption, and different exemptions may apply to different owners. The main exemptions for individuals include:

• Principal residence. An owner who lives and works in B.C. may be exempt if the property is their principal residence. The owner must be a Canadian citizen or permanent resident who is a B.C. resident for income tax purposes and is not an untaxed worldwide earner. People with multiple homes can only claim the principal residence exemption on the home they live in for the longest period in the calendar year. Spouses cannot claim two different principal residence exemptions unless specific situations apply, such as living apart for work or medical reasons, or a recent separation or divorce.
• Occupied by a tenant. If a renter or non-arm's-length tenant occupies the home for at least six months in the calendar year, the owner may be exempt, as long as the tenancy requirements are met. The six months can be made up of different tenants, but each tenancy must still meet the requirements, such as rentals in at least one month increments.
• Previous principal residence. The principal residence exemption can also apply when an owner lived in the home but no longer lives there, for example after moving out of province, or after moving into a residential care facility (for up to two years).
• Away from home for medical reasons. An owner away from their home to receive necessary medical treatment for themselves, their spouse or their minor child may be exempt for up to two years for the same medical condition.
• Secondary residence close to a medical treatment facility. Exempt for a calendar year if the owner, spouse or child periodically occupies it to receive required medical treatment, with written documentation from a medical practitioner or nurse practitioner.
• Just bought or inherited the property. A newly bought property is exempt if the owner paid property transfer tax, or did not have to pay it for one of the reasons the province lists (for example the first-time home buyers' exemption or the newly built homes exemption). Owners are exempt in the year they legally inherited the property.
• Separation or divorce. Spouses who have separated and live apart for at least 90 consecutive days in a calendar year may be exempt on family property.
• Uninhabitable residence. Applies when a residence is damaged, or becomes uninhabitable for 60 consecutive days in the calendar year, due to a disaster or a hazardous condition beyond the owner's control.
• Recent death of an owner. All owners at the time of death are exempt in the year of death and the immediately following calendar year.
• Member of the Canadian Armed Forces. If the owner or their spouse is away from home due to military service requirements, the owner may claim an exemption for that year.
• Person with a disability lives in the residence. Owners are exempt if a person with a disability lives there as their principal residence. The exemption applies if anyone who lives in the residence has a disability, not just the owner.

There are other exemptions and exclusions, including for land under development and for properties with an assessed value of $150,000 or less. See the official exemptions pages below for the full list.

Tenancy requirements in brief

The province distinguishes between arm's-length and non-arm's-length tenants. Family members, such as parents, adult children or siblings, can never be at arm's length. An owner's spouse, or the owner's minor child living with their parent or guardian, can never be considered a tenant.

• Arm's-length tenant: the tenant has no advantage of any personal or family relationship to an owner, a written tenancy agreement is in place under the Residential Tenancy Act, and the tenant makes the residence their home.
• Non-arm's-length tenant, Canadian owners: a rental exemption may apply if the tenant has an owner's permission to live there and it is where the tenant lives most of the time each month.
• Non-arm's-length tenant, foreign owners and untaxed worldwide earners: an exemption may apply only in very limited circumstances. At least one tenant per residence must be a Canadian citizen or permanent resident, a B.C. resident for income tax purposes at the end of the last day of the calendar year, not an untaxed worldwide earner, and have a B.C. income for the year equal to or greater than three times the annual fair market rent for the entire residential property. A tenant may not combine their income with another person's for this purpose.

What if you don't declare?

Under the Speculation and Vacancy Tax Act, a tax rate of 3% applies for a calendar year to every owner of a residential property who fails to file a declaration for that year. Interest is payable on unpaid tax. The Act says no interest is payable if the amount owing under a notice of assessment is paid in full within 30 days after the date of the notice.

Anyone who has declared may be audited. The province says audits are routinely conducted to ensure exemptions have been claimed correctly and taxes have been paid correctly. If you received a Notice of Assessment and believe an error was made, the province's assessments and appeals page lists your options.

If you would like to make payment arrangements for an overdue SVT balance, call the Receivables Management Office at 1-866-566-3066 toll-free, 8:30 am to 4:30 pm Pacific Time, Monday to Friday.

Related guides

Other guides on this site that homeowners often look up:

• Surrey property tax guide
• BC Home Owner Grant
• BC Property Transfer Tax calculator

Frequently Asked Questions

Official sources

• Speculation and Vacancy Tax — Province of British Columbia
• SVT tax rates
• SVT designated taxable areas
• SVT exemptions overview
• SVT exemptions for individuals
• SVT tenancy requirements
• SVT contact and help line
• Speculation and Vacancy Tax Act (BC Laws)

General information only, not professional advice. Rules and prices change, so check the official sources above before you act. Spotted something out of date? Tell us.