Buying and Selling Property in BC: Taxes, Timelines and Rules

Property transfer tax is charged when a change of ownership is registered at the Land Title Office, on the fair market value at registration. The general rate is 1% on the first $200,000, 2% from $200,000 to $2,000,000 and 3% above $2,000,000. A further 2% applies to the residential value above $3,000,000.

First-time buyers can be exempt on the first $500,000 of the price. Since April 1, 2024 the full exemption applies to homes with a fair market value of $835,000 or less and a partial exemption up to $860,000. The buyer must be a Canadian citizen or permanent resident, must have lived in BC for the year before registration or filed two BC tax returns in the last six years, and must never have owned a principal residence anywhere.

A separate exemption covers newly built homes used as a principal residence: in full up to $1,100,000 and in part up to $1,150,000, also since April 1, 2024. Foreign nationals, foreign corporations and taxable trustees pay an additional 20% on residential property in specified areas of the province.

Since January 3, 2023 a buyer of residential property in BC can rescind an accepted offer within three business days, under section 42 of the Property Law Act. The period starts the business day after acceptance and excludes weekends and statutory holidays.

It covers detached and semi-detached houses, townhouses, apartments and strata lots and some manufactured homes and co-op interests. Leasehold interests, property on leased land, auction sales and court-ordered sales are excluded.

To rescind, the buyer gives written notice before the period ends and pays a fee of 0.25% of the purchase price, normally taken from the deposit. Neither party can waive the period, and any subject conditions in the contract run at the same time.

The BC home flipping tax took effect on January 1, 2025. It applies to the profit from selling a BC residential property, including an assigned presale contract, owned for less than 730 days.

The rate is 20% of the net taxable income for a sale within 365 days of acquisition. It then declines over the second year and no longer applies at 730 days. Owners who lived in the home as their principal residence for at least 365 consecutive days can deduct up to $20,000 of the taxable income; the deduction does not apply to presale assignments.

The tax is separate from federal income tax on the same sale, and some life events and transfers are exempt. Check the provincial guidance before listing a property held for less than two years.

The speculation and vacancy tax applies to residential property in designated taxable areas of BC. Owners declare every year, even when nothing has changed, and owe tax unless an exemption applies — most commonly that the home is a principal residence or rented to an arm's-length tenant for enough of the year.

From the 2026 tax year the rate is 3% of assessed value for foreign owners and untaxed worldwide earners and 1% for Canadian citizens and permanent residents, up from 2% and 0.5%. The tax credit for BC residents rises from $2,000 to $4,000.

Vancouver charges its own Empty Homes Tax in addition, with a separate annual declaration.

BC Assessment values every property as of July 1 of the year before the roll, and notices arrive in January. An owner who disagrees can ask for a review by the Property Assessment Review Panel by January 31; in 2026 the deadline moved to February 2 because January 31 fell on a weekend.

A panel decision can be appealed to the Property Assessment Appeal Board by April 30. The assessed value drives property tax and the speculation and vacancy tax, so it is worth checking each year, especially in a falling market.

Under the Real Estate Services Act, anyone who trades in real estate for others in BC must be licensed by the BC Financial Services Authority (BCFSA). Buyers and sellers can confirm a brokerage or licensee in BCFSA's public licensee search before signing an agreement.