5 February 2026

2026 Speculation & Vacancy Tax Increase in Vancouver

Effective January 1, 2026, British Columbia's Speculation and Vacancy Tax (SVT) undergoes significant changes that will impact thousands of Vancouver homeowners. The tax rate doubles for Canadian residents and increases substantially for foreign owners, while the tax credit also doubles. Understanding these changes now is crucial for proper planning and avoiding unexpected tax bills.

Why These Changes Matter

The 2026 speculation and vacancy tax increase Vancouver homeowners face represents the largest change to SVT since its introduction in 2018. For a $2 million Vancouver property, Canadian residents will see their annual tax increase from $10,000 to $20,000 (before credits), while foreign owners face increases from $40,000 to $60,000. With proper planning, many homeowners can minimize or eliminate their tax liability through exemptions and the increased credit.

Key Changes Effective January 1, 2026

The 2026 speculation and vacancy tax increase Vancouver property owners need to understand includes three major changes:

Canadian Residents

0.5% → 1.0%

100% increase: The tax rate doubles from 0.5% to 1.0% of assessed property value.

Example: $2M property: $10,000 → $20,000 annually

Foreign Owners

2.0% → 3.0%

50% increase: Foreign owners see rates rise from 2.0% to 3.0% of assessed value.

Example: $2M property: $40,000 → $60,000 annually

Tax Credit Increase

$2,000 → $4,000

100% increase: The maximum tax credit doubles from $2,000 to $4,000 per owner.

Example: Couple filing jointly: $4,000 → $8,000 credit

Important: The 2026 speculation and vacancy tax increase Vancouver homeowners face applies to the 2026 tax year, which is assessed based on property ownership as of December 31, 2026. Returns are due in March 2027, but planning should begin now to ensure proper exemption claims and minimize tax liability.

Who Is Affected by the 2026 Speculation and Vacancy Tax Increase Vancouver

The SVT applies to residential property owners in designated areas, including Vancouver, Victoria, Kelowna, and other major BC municipalities. The 2026 speculation and vacancy tax increase Vancouver homeowners face will impact:

Canadian Residents

Canadian citizens and permanent residents who own residential property in SVT areas and don't qualify for exemptions will see their tax double from 0.5% to 1.0%.

2025 Rate 0.5%

2026 Rate 1.0%

Foreign Owners

Foreign owners (non-Canadian citizens or permanent residents) face the highest rates, increasing from 2.0% to 3.0%—a 50% increase.

2025 Rate 2.0%

2026 Rate 3.0%

Satellite Families

Satellite families (households where worldwide income is primarily reported outside Canada) continue to pay 2.0% in 2026, unchanged from 2025.

2025 Rate 2.0%

2026 Rate 2.0%

Real-World Impact: Tax Calculations

Understanding the actual dollar impact of the 2026 speculation and vacancy tax increase Vancouver homeowners face helps with planning:

Tax Calculation Examples

Canadian Resident - $2 Million Property

2025 Tax (0.5%) $10,000

Less: Tax Credit -$2,000

2025 Net Tax $8,000

2026 Tax (1.0%) $20,000

Less: Tax Credit -$4,000

                        2026 Net Tax
                        $16,000
                    

Increase: $8,000 (100%)

Foreign Owner - $2 Million Property

2025 Tax (2.0%) $40,000

Less: Tax Credit -$2,000

2025 Net Tax $38,000

2026 Tax (3.0%) $60,000

Less: Tax Credit -$4,000

                        2026 Net Tax
                        $56,000
                    

Increase: $18,000 (47%)

Available Exemptions and How to Qualify

Many homeowners can avoid the 2026 speculation and vacancy tax increase Vancouver property owners face through available exemptions:

Principal Residence

Your principal residence is fully exempt. You must live in the property for at least 6 months of the year and it must be your primary home.

Impact: Most Vancouver homeowners qualify for this exemption.

Qualified Long-Term Rental

Properties rented for at least 6 months of the year (with minimum 30-day leases) qualify for exemption. The property must be available for rent and actually rented.

Impact: Landlords with long-term tenants are exempt.

Medical or Financial Hardship

Exemptions available for medical reasons, financial hardship, or other qualifying circumstances. Requires documentation and approval.

Impact: Case-by-case review required.

New Construction

Properties under construction or recently completed may qualify for temporary exemptions during the construction period.

Impact: Time-limited exemption during development.

Exemption Deadline: You must claim exemptions when filing your SVT return. For the 2026 tax year, returns are due in March 2027. However, you should ensure you meet exemption requirements throughout 2026, as the tax is assessed based on your status as of December 31, 2026.

Planning Strategies for the 2026 Speculation and Vacancy Tax Increase Vancouver

Proactive planning can help minimize the impact of the 2026 speculation and vacancy tax increase Vancouver homeowners face:

Key Planning Strategies

Verify Principal Residence Status: Ensure your property qualifies as your principal residence. You must live in it for at least 6 months of the year and it must be your primary home. Keep records of utility bills, mail, and other proof of residence.

Document Rental Activity: If claiming rental exemption, maintain detailed records including lease agreements, rent receipts, and proof that the property was available for rent. Short-term rentals (Airbnb) don't qualify—you need minimum 30-day leases.

Maximize Tax Credits: The increased $4,000 credit per owner can significantly reduce tax liability. For couples filing jointly, the credit is $8,000. Ensure all eligible owners claim their credits.

Consider Property Transfers: For families with multiple properties, transferring ownership to maximize exemptions may be beneficial. Consult with a tax professional before making ownership changes.

Review Property Values: SVT is calculated on BC Assessment values. If you believe your assessment is too high, consider filing an appeal. Lower assessments mean lower SVT liability.

Important Dates and Deadlines

January 1, 2026

New rates take effect: The 2026 speculation and vacancy tax increase Vancouver homeowners face begins on this date. Tax liability is assessed based on ownership as of December 31, 2026.

Throughout 2026

Maintain exemption eligibility: Ensure you meet exemption requirements throughout the year. Keep records of residence, rental activity, or other qualifying circumstances.

March 2027

SVT return deadline: File your 2026 SVT return and claim all available exemptions and credits. Late filing can result in penalties and interest.

Common Scenarios and Solutions

✅ Principal Residence Owner

Situation: You own a $2.5M Vancouver home as your principal residence.

Result: Fully exempt from SVT. No tax liability regardless of the 2026 speculation and vacancy tax increase Vancouver homeowners face.

✅ Long-Term Rental Property

Situation: You own a $1.8M condo that's rented year-round with 12-month leases.

Result: Qualifies for rental exemption. No SVT liability.

⚠️ Secondary Property (Canadian Resident)

Situation: You own a $2M Vancouver property that's vacant or used occasionally.

Result: 2026 tax: $20,000 less $4,000 credit = $16,000 (up from $8,000 in 2025). Consider renting long-term or selling.

⚠️ Foreign Owner - Vacant Property

Situation: Foreign owner with $3M property that's vacant.

Result: 2026 tax: $90,000 less $4,000 credit = $86,000 (up from $78,000 in 2025). Significant increase requires immediate planning.

Get Expert Help with the 2026 Speculation and Vacancy Tax Increase Vancouver

Navigating the 2026 speculation and vacancy tax increase Vancouver homeowners face requires careful planning and understanding of exemptions. J. Wang Chartered Professional Accountant offers SVT planning services to help Vancouver property owners minimize tax liability, ensure proper exemption claims, and avoid costly mistakes.

SVT Exemption Review

Tax Planning Strategies

SVT Return Preparation

Property Ownership Planning

Schedule Your SVT Planning Consultation

Let's discuss how the 2026 speculation and vacancy tax increase Vancouver homeowners face affects you and develop a plan to minimize your tax liability

OR CONTACT US DIRECTLY

Phone 604-638-0990

Cell 604-314-3631

Email [email protected]

Need help with other property taxes? We also assist with BC Home Flipping Tax and Real Estate Rental Tax (T776). Schedule an appointment with our Vancouver tax team today.