How to calculate your BC home flipping tax
Last updated on January 26, 2026Calculate your BC home flipping tax in 4 steps
Find out how to calculate your BC home flipping tax for portions of property acquired or disposed.
Step 1: Calculate your taxable income on the disposition of the taxable property
Taxable income from the disposition of a taxable property is calculated as:
Proceeds from the disposition of the taxable property minus cost to acquire the taxable property minus cost to improve the residential property that is a taxable property.
Step 2: Calculate your net taxable income
If the residential property is your primary residence, you may be eligible to also claim a primary residence deduction.
Your net taxable income is calculated as:
Your taxable income from Step 1 minus primary residence deduction
Your net taxable income cannot be a negative amount. A calculation of net taxable income that results in a negative amount is deemed to be zero.
Step 3: Calculate your tax rate
If you own the taxable property for less than 366 days, the tax rate is 20%.
If you own the taxable property for more than 365 days and less than 730 days, the tax rate is reduced until it reaches zero according to the following formula:
Tax rate: 20% × [ 1 - (Days held - 365) / 365) ]
If you own the taxable property for more than 729 days, you are not subject to the BC home flipping tax.
The amount of the tax rate is rounded to the nearest one-thousandth.
Learn how to determine the number of days you’ve owned your taxable property for this tax.
Step 4: Calculate your tax owing
Your tax owing is:
Your tax rate from Step 3 multiplied by your net taxable income from Step 2.
Example calculation for the BC home flipping tax
Jacqueline acquired the taxable property for $900,000 on December 1, 2023. They lived in the residential property as their primary residence until they sold it for $1,000,000 on January 1, 2025. New major appliances including a new fridge, washer, dryer and range totaling $10,000 were added to the residential property in December 2024 and sold with the taxable property on January 1, 2025.
Since Jacqueline held the taxable property for less than 730 days, and is not eligible for any exemptions, the disposition of the taxable property is subject to the tax.
Step 1: Calculate your taxable income
Taxable income is $1,000,000 - $900,000 - $10,000 = $90,000
Step 2: Calculate your net taxable income
Jacqueline qualifies for the primary residence deduction and can claim a deduction of $20,000.
Net taxable income is $90,000 - $20,000 = $70,000
Step 3: Calculate your tax rate
Jacqueline owned the taxable property for more than 365 days (398 days), therefore Jacqueline’s tax rate will be below 20% and determined according to the following formula:
Tax rate = 20% × [1 - (398 - 365) / 365 ] = 18.192%
Step 4: Calculate your tax owing
Jacqueline’s tax owing is the net taxable income of $70,000 × 18.192% = $12,734.40
If Jacqueline held the taxable property for 365 or fewer days
If Jacqueline acquired the taxable property on or after January 3, 2024 and disposed of it on January 1, 2025, they held the taxable property for less than 366 days. Jacqueline would not be eligible for the primary residence deduction, and is not eligible for any exemptions. They would have a tax rate of 20% applied to their taxable income from Step 1.
Jacqueline’s tax owing is $90,000 × 20% = $18,000