Tax rates for the speculation and vacancy tax

Publication Date: January 15, 2024

The speculation and vacancy tax rate varies depending on the owner’s tax residency. In addition, the tax rate varies based on whether the owner is a Canadian citizen or permanent resident of Canada, or an untaxed worldwide earner (a category of taxpayer that includes members of a satellite family). 

For 2018, the tax rate is:

  • 0.5% of the property’s assessed value for all properties subject to the tax

For 2019 and subsequent years, the tax rate is:

  • 2% for foreign owners and untaxed worldwide earners
  • 0.5% for Canadian citizens or permanent residents of Canada who are not untaxed worldwide earners

The speculation and vacancy tax applies based on ownership as of December 31 each year.

A speculation and vacancy tax year is the same as a calendar year. Tax for a calendar year is due the following July. For example, for a property where the owner owes taxes for 2018, the amounts were due on July 2, 2019.  

Shared ownership

If a residential property has multiple owners, the tax amount owed is divided among each owner based on their ownership share. 

For example, if you and your spouse are equal owners of a residential property in a taxable region, and no exemption applies, you'll each owe tax on 50% of the home's assessed value. 

Corporations, trustees and business partners

The tax rate for a corporation, trustee, or business partner will be the highest rate applicable to any of the corporate interest holders, beneficial owners or business partners if they held the residential property individually. 

For example, a corporation with three corporate interest holders owns a property in Vancouver that is used as a vacation home for friends and family. However, one corporate interest holder is an American citizen and reports 100% of their income in the United States of America. 

The other two corporate interest holders are Canadian citizens and B.C. residents. They report 100% of their income on Canadian income tax returns. In this example, all three corporate interest holders are subject to the highest tax rate applicable, as one owner is an untaxed worldwide earner. 

This information is provided for your convenience and guidance and is not a replacement for the legislation

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