BC Speculation and Vacancy Tax: What Changed for 2026

Overview

British Columbia's speculation and vacancy tax (SVT) has been updated for the 2026 tax year. The changes, announced in the February provincial budget, expand the geographic reach of the tax and adjust rate brackets for foreign owners and satellite families.

Expanded municipalities

Three new communities in the Okanagan -- Lake Country, Peachland, and Summerland -- are now subject to the SVT. Kelowna, West Kelowna, and Penticton were already included.

Updated rate tiers

• Canadian citizens and permanent residents: 0.5% (unchanged)
• Foreign owners and satellite families: increased from 2% to 2.5%
• BC residents claiming principal-residence exemption: exempt (unchanged)

How to claim your exemption

If you live in your home as your principal residence, you are exempt. The declaration must be filed annually through the SVT portal by March 31. Late or missed declarations can trigger an automatic assessment at the default rate.

Impact on the local market

Industry analysts expect the expansion to push some under-used properties onto the market, adding modest supply in communities where inventory has been persistently low.

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This article summarizes publicly available government announcements. It does not constitute tax or legal advice.