Every winter the same thing happens. A letter arrives, or does not arrive, and people assume that because they live in their own home the whole thing does not apply to them. Then a bill shows up for a tax they never owed, on a property they never left empty.
On this page
- Quick Answer: If You Own in a Taxable Area, You Declare, Even If You Are Exempt
- Two Different Taxes, Do Not Confuse Them
- Which Areas Are Taxable, and How to Check Your Address
- The March 31 Declaration: How It Works
- Rate Increases: What You Will Pay
- The Exemptions Most Owners Qualify For
- Why Short Term Rentals Usually Fail the Occupancy Test
- The Tax Credit If No Exemption Applies
- Frequently Asked Questions
- Property Tax Questions? Talk to an Accountant Who Knows BC
Quick Answer: If You Own in a Taxable Area, You Declare, Even If You Are Exempt
That sentence is the entire article in one line, and it is the mistake that costs people thousands.
These are declaration based taxes. The government does not know your home is your principal residence until you tell them. If you do not declare, the system assumes the worst and assesses you at the full rate. You then have to fight your way back.
| Speculation and Vacancy Tax | Empty Homes Tax | |
| Who runs it | Province of BC | City of Vancouver only |
| Where it applies | Designated BC municipalities | Inside Vancouver city limits |
| 2026 rate | 1% for citizens and PRs, 3% for foreign owners and untaxed worldwide earners | 3% of assessed value |
| Declaration deadline | March 31 | Early February |
| Who declares | Every owner on title, separately | One declaration per property |
| If you own in Vancouver | You declare for both | You declare for both |
Yes, a Vancouver homeowner files two separate declarations to two separate governments every year. Missing either one is expensive.
Our tax services are available in Coquitlam and other regions across British Columbia.
Two Different Taxes, Do Not Confuse Them
Provincial Speculation and Vacancy Tax
The SVT is a provincial tax on residential property in designated areas. It applies across most of Metro Vancouver including Vancouver, Burnaby, Coquitlam, Port Moody, Port Coquitlam, New Westminster, Richmond, Surrey, North Vancouver city and district, West Vancouver, and beyond the region in the Capital Regional District, Kelowna, West Kelowna, Nanaimo, Abbotsford, Chilliwack, Mission, Kamloops and several others. The list has expanded steadily.
Every owner on title must declare individually, every year, by March 31.
City of Vancouver Empty Homes Tax
The EHT is a separate municipal tax that applies only within Vancouver. The 2026 rate is 3% of the property’s assessed taxable value. The declaration is due in early February for the previous reference year, with payment due in April if tax is owing.
A Vancouver property left vacant faces the EHT and the SVT at the same time. On a $2 million home that combination can exceed $80,000 a year.
Which Areas Are Taxable, and How to Check Your Address
The SVT is applied by municipality, and the boundaries are precise. Several places are outside the designated areas entirely, including Bowen Island, Lions Bay, Electoral Area A, most Gulf Islands, and reserve lands.
Do not rely on memory or on what a neighbour told you. The province publishes the current list of taxable regions, and it changes. Check your specific address each year before you assume anything.
The March 31 Declaration: How It Works
The province mails a declaration letter to every owner in a taxable area, usually in January and February. It contains your Letter ID and Declaration Code. You declare online in about five minutes, or by phone.
You are confirming, for the previous calendar year:
- Whether the property was your principal residence
- Whether it was rented, and for how many months
- Whether any exemption applies to you
- Your residency and income tax status
Each Owner on Title Declares Separately
This is the single most common failure. If you and your spouse are both on title, you each get your own letter and you each file your own declaration. One of you declaring does not cover the other.
The same applies to a parent added to title to help with financing, an adult child on title for estate planning, and every partner in a co ownership. Every name on title, every year.
What Happens If You Miss It
If you do not declare, you are assessed at the maximum rate as though the property were vacant and you were a foreign owner in some cases. The assessment arrives by mail and it is real.
You can still declare late. Late declarations are accepted and the assessment is usually reversed once the exemption is confirmed, but you will spend time on hold, you may have to pay first and be refunded, and interest can accrue. For Vancouver’s EHT, a late declaration also attracts a bylaw fine.
The lesson is simple: put both deadlines in your calendar as recurring annual reminders.
Rate Increases: What You Will Pay
The SVT has been climbing.
| Tax year | Canadian citizens and permanent residents | Foreign owners and untaxed worldwide earners |
| 2024 and earlier | 0.5% | 2% |
| 2026 | 1% | 3% |
| 2027 (proposed in Budget 2026) | 1% | 4% |
The BC tax credit that offsets SVT for BC residents also increased, from $2,000 to $4,000 starting in 2026.
Worked Example on a $1.4 Million Metro Vancouver Home
Assume a $1.4 million assessed value and no exemption applies.
| Scenario | Rate | Tax before credit | BC resident credit | Net tax |
| BC resident, property vacant | 1% | $14,000 | $4,000 | $10,000 |
| Canadian owner living outside BC | 1% | $14,000 | Not available | $14,000 |
| Foreign owner, 2026 | 3% | $42,000 | Not available | $42,000 |
| Foreign owner, 2027 proposed | 4% | $56,000 | Not available | $56,000 |
If the same property were inside Vancouver city limits, add the Empty Homes Tax at 3%, another $42,000.
Compare that to renting the place out for six months at $3,000 a month. Twelve months of tenancy earns you $36,000 and eliminates the tax entirely. The arithmetic is not subtle, which is precisely the point of the policy.
The Exemptions Most Owners Qualify For
The vast majority of owners owe nothing. You still have to say so.
Principal Residence
The property is where you live most of the year. This covers most homeowners and is the most common exemption by a wide margin.
Occupied by a Long Term Tenant
The property was rented to a tenant for at least six months of the calendar year, in periods of at least one month at a time. Note the structure: monthly or longer tenancies, adding up to six months minimum.
Life Events
The province recognizes that homes sit empty for ordinary human reasons:
- The owner is in a hospital, long term care facility or supportive care
- Medical absence, including caring for a family member elsewhere
- Temporary absence for work
- Separation or divorce
- The owner died and the estate is being administered through probate
- Recent purchase, or a property under construction or major renovation
- The property is uninhabitable or cannot legally be occupied
- Hazardous or damaged conditions
Most of these require documentation if you are asked, so keep the paperwork.
Why Short Term Rentals Usually Fail the Occupancy Test
Here is a trap that catches a lot of Metro Vancouver owners.
Airbnb income does not satisfy the tenancy exemption. The rules count tenancies of one month or longer. A property booked solidly with nightly and weekend stays for eleven months of the year can still be assessed as vacant.
So an owner can be running a busy short term rental, paying PST and MRDT and income tax on the revenue, and still receive a speculation tax bill because none of those stays counted. Combine that with BC’s principal residence requirement for short term rentals and the picture gets tighter still. If you are relying on short term rental income to justify holding a property you do not live in, look carefully at both rule sets before the year ends, not after.
The Tax Credit If No Exemption Applies
If you are assessed, there are credits that reduce the bill.
- BC residents get a credit of up to $4,000 as of 2026, applied against SVT on one property.
- Non BC residents and non Canadians get a smaller credit tied to the BC income tax they actually pay, capped at a percentage of their BC income.
The BC resident credit is generous enough to fully shelter a property assessed at $400,000 or less at the 1% rate. Above that, the tax starts to bite.
Frequently Asked Questions
Do I declare if I own only a share of the property?
Yes. Every individual on title declares separately, regardless of the size of their share. A 1% owner files the same declaration as a 99% owner.
I never received a letter. Am I off the hook?
No. The obligation to declare does not depend on receiving mail. Letters go astray, addresses change, and new owners are missed. If you own residential property in a taxable area, contact the province and get your Letter ID.
Can I claim an exemption retroactively?
Usually yes. Late declarations are accepted and assessments are typically reversed once your exemption is verified. Expect delays, possible interest, and in Vancouver a late declaration fine.
Does a vacant lot or a property under construction count?
Vacant land without a residence is generally outside the SVT. A property under construction or substantial renovation has its own exemption, subject to conditions on permits and reasonable progress.
We are separated and only one of us lives there. Who declares?
Both of you, separately. The resident spouse claims principal residence. The other claims the separation exemption. Both declarations still have to be filed.
Does a secondary suite change anything?
The declaration is by property and by owner, not by suite. If you live in the home, the principal residence exemption applies to the whole property.
What if I rent to a family member?
That is fine for the tenancy exemption as long as it is a genuine tenancy of one month or longer. There are additional rules where the tenant is a non arm’s length person and the owner is a foreign owner or satellite family, so check the specifics.
Is the tax deductible against my rental income?
No. SVT and EHT are not deductible against rental income. They are punitive taxes, not carrying costs.
What is a satellite family?
A household where the majority of total worldwide income for the year is not reported on a Canadian tax return. Satellite families are taxed at the higher rate even if the members are Canadian citizens or permanent residents.
How do I appeal an assessment?
Both programs have formal review and appeal processes with their own deadlines, generally quite short. Start with a late declaration if you simply missed the deadline, since that resolves most cases faster than a formal appeal.
Property Tax Questions? Talk to an Accountant Who Knows BC
The speculation and vacancy tax and the empty homes tax are simple in principle and unforgiving in practice. Declare on time, claim the exemption you already qualify for, and the bill is zero. Forget, and you are arguing with two levels of government over a five figure assessment.
If you own multiple properties, hold property through a corporation, trust or partnership, have a family member on title, or received an assessment you were not expecting, get advice before the deadline rather than after.
Maxpro Financials serves clients in Coquitlam, Port Moody, Vancouver, Burnaby, Calgary and beyond, handling personal and corporate tax, property tax planning and CRA correspondence.
This article is general information current as of 2026 and is not tax advice for your specific situation. Rates, deadlines and taxable areas change annually, so confirm current details with the Province of BC and the City of Vancouver.