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BC Property Taxes / Property Purchase Taxes
Property tax is charged based on the assessed values of properties in the province. There are various classes of property, and different tax rates are imposed based on the property classification. Tax rates vary between municipalities.
The assessment and classification of properties is done by BC Assessment, based on the Assessment Act, Prescribed Classes of Property Regulation, Classification of Land as a Farm Regulation and other regulations.
Farm Status in British Columbia - Understanding the Regulation
Additional School Tax for Residential Properties
BC Home Flipping Tax - new for 2025 and later years
Purpose-Built Rental Exemptions
First Time Home Buyers' Program
Foreign Buyer Tax (Additional Property Transfer Tax)
Partitioning the BC Assessed Value for Multiple Residences
Additional School Tax for Residential Properties
School tax is one of the components of property taxes.
The BC 2018 Budget budget introduced an additional school tax, starting in 2019, for high-valued residential properties in the province. The additional tax rate is:
- 0.2% on the residential portion assessed between $3 million and $4 million
- 0.4% on the residential portion assessed over $4 million
Property Transfer Tax
In addition to annual property taxes, property transfer taxes must be paid by the buyer when a property is sold.
The BC 2018 Budget imposed an additional tax on the portion of the fair market value of residential land and improvements greater than $3 million, effective February 21, 2018. For example, if a residential property is sold for $4 million, the property transfer tax will be:
 | 1% on the first $200,000 ($2,000) |
| 2% on the portion of the fair market value greater than $200,000 and up to and including $2 million ($1.8 million x 2% = $36,000), |
| 3% on the portion of the fair market value greater than $2 million (($4 million - $2 million) = $60,000 x 3%), and |
| because the property is residential, a further 2% on the portion of the fair market value greater than $3 million ($4 million - $3 million) x 2% = $20,000. |
This means that the portion of the fair market value over $3 million is subject to a total of 5% property transfer tax. The above $4 million property would have property transfer tax totalling $118,000 (2,000 + 36,000 + 60,000 + 20,000).
BC Home Flipping Tax
The BC 2024 Budget included a proposal for a home flipping tax, even on your principal residence, if sold within 2 years of purchase, and if sold on or after January 1, 2025. This tax will not be done on the tax return.
| Applies to gain from the sale of:
| ||||||
| The date of purchase is generally the date that ownership is transferred to you. | ||||||
| The date of sale is generally the date that you transfer ownership to the buyer. | ||||||
| There will be a reduction of the gain of up to $20,000 for a principal residence. | ||||||
| Tax rate will be 20% for income earned from properties sold within 365 days of purchase and will decline to zero between 366 and 730 days. | ||||||
| There will be exemptions for certain life circumstances that motivated the sale of the property, as well as for those who add to the housing supply or engage in construction and real estate development. | ||||||
| Presale contracts will also be affected, and assignment of presale
contracts.
| ||||||
| This will be administered by the seller filing a BC home flipping tax return within 90 days of the sale. This will not be part of the annual income tax return. |
This tax will reduce any gain on sale of the property for income tax purposes, as it is an outlay or expense incurred for the purpose of making the disposition.
See BC Home Flipping Tax on the BC government website, which provides more information on how presale contracts are affected.
There is also a federal Residential Property Flipping Rule for property held less than 12 months, even if the property is the principal residence.
Purpose-Built Rental Exemptions
The BC 2023 Budget announced that effective January 1, 2024, purchasers may qualify for an exemption from the further 2% property transfer tax on the portion of the fair market value over $3 million, for new qualifying purpose-built rental buildings. This exemption encourages people to build rental units with at least 4 suites and keep them as rentals for a minimum of 10 years.
The BC 2024 Budget announced an exemption from the general property transfer tax on purchases of new qualifying purpose-built rental buildings that take place between January 1, 2025 and December 31, 2030.
First Time Home Buyers' Program
Property Transfer Tax Act s. 5-10
This program reduces or eliminates the property transfer tax paid when your first home is purchased.
The BC 2024 Budget proposed increasing the market value threshold for both the full and partial property transfer tax exemptions, effective April 1, 2024.
The threshold for the
| full exemption increases from $500,000 to $835,000, and |
| partial exemption increases from $525,000 to $860,000. |
See First time home buyers' program on the BC website.
Newly Built Home Exemption
This exemption reduces or eliminates the property transfer tax on qualifying purchases of a principal residence.
The BC 2024 Budget proposed increasing the market value threshold for both the full and partial exemptions, effective April 1, 2024.
The threshold for the
| full exemption increases from $750,000 to $1,100,000, and |
| partial exemption increases from $800,000 to $1,150,000. |
See Newly built home exemption on the BC website.
Foreign Buyer Tax (Additional Property Transfer Tax)
A foreign national, foreign corporation or taxable trustee must pay additional property transfer tax on a residential property transfer if the property is within specified areas of BC.
The tax rate is 15% of the fair market value for property transfers registered on or before February 20, 2018, if the property is within the Greater Vancouver Regional District (GVRD).
The tax rate is 20% of the fair market value for property transfers registered on or after February 21, 2018, if the property is within:
- Greater Vancouver Regional District (GVRD),
- Capital Regional District,
- Fraser Valley Regional District,
- Regional District of Central Okanagan,
or
- Regional District of Nanaimo
This tax has survived a court challenge - see the TaxPage.com article Foreign Buyer Tax Survives Constitutional Challenge.
BC Home Owner Grant
The BC Home Owner Grant can be claimed for your principal residence, to reduce the amount of property taxes you pay. The amount of the grant is greater for seniors. The grant is reduced for properties assessed over a certain threshold, which can change annually.
As per section 6 of the Home Owner Grant Act, if an owner of an eligible residence receives the home owner grant, then neither the owner nor the owner's spouse is entitled, for that tax year, to receive another home owner grant.
If a property is still registered in the name of a deceased owner or the deceased owner's estate, then the spouse or relative of the deceased owner can still apply for the home owner grant. See Home owner grant for spouse or relative of a deceased owner on the BC website.
There is a lot of information on the Home Owner Grant on the BC website, including the current home owner grant threshold, and how to claim your grant online. However, it does not specifically address the home owner grant limitations regarding spouses who are NOT separated and living apart.
News Release January 2, 2024 re 2024 Home Owner Grant Threshold $2,150,000
News Release January 3, 2023 re 2023 Home Owner Grant Threshold $2,125,000
News Release January 5, 2022 re 2022 Home Owner Grant Threshold $1,975,000
Partitioning the BC Assessed Value for Multiple Residences
If there are at least 2 residences on your property and the assessed value exceeds the home owner grant threshold, you may be able to "partition" the assessed value of the property - i.e., divide the assessed value by the number of residences on the property. Each residence must have cooking, sleeping, bathroom and living room facilities in order to qualify. See the Home Owner Grant on the BC website (link above) for more information.
Tax Tip: Make sure you're aware of current and annual tax costs when purchasing a property!
TaxTips.ca Resources
Federal Residential Property Flipping Rule for homes sold within 1 year, even the principal residence.
Ontario Taxes on Property - including Foreign Buyer Tax, municipal Vacant Home taxes
Buying Real Estate from a Non-Resident - if you buy from a non-resident without realizing it, this could be very costly!
BC Speculation and Vacancy Tax
City of Vancouver Empty Homes Tax - this is a separate tax from the BC Speculation and Vacancy Tax
Farm Status in British Columbia - Understanding the Regulation
Canada's Underused Housing Tax
BC Government Resources
Home Owner Grant - Claim your grant online
Additional Property Transfer Tax for Foreign Entities & Taxable Trustees (Foreign Buyer Tax)
School Act Division 4 - Taxation: General School Tax is s. 119, Additional School Tax is s. 120.1
Additional School Tax for Residential Properties
Revised: September 20, 2024