BC 2023 Budget: Flipping Tax, Speculation Tax Updates, and Renter Benefits

Key takeaways

• BC introduced a new property flipping tax: 20% on gains from properties sold within 1 year of purchase, tapering to 0% at 2 years
• The existing speculation and vacancy tax rates increased for foreign owners (to 2%) and satellite families (to 2%)
• A new BC Renter's Tax Credit of up to $400 per year applies for 2023 and later tax years
• The provincial income tax top rate bracket threshold was not changed; BC's top marginal rate is 20.5% on income over $240,716
• BC's carbon tax increased in step with the federal schedule

British Columbia's 2023 budget targeted property speculation with a new flipping tax and increased the speculation and vacancy tax for non-residents, while offering renters a new refundable tax credit.

BC property flipping tax

BC's property flipping tax took effect January 1, 2025 (announced in 2023, implementation delayed). The tax applies to net profits from selling residential properties held for less than two years. The rate is 20% on gains from properties sold within the first year, declining on a sliding scale to 0% at the two-year mark. Unlike the federal flipping rule (which only deems income as business income), BC's tax is a separate provincial tax on the gain.

Exemptions apply for life events: death, divorce, job loss, new employment requiring relocation, birth or adoption of a child, disability, and other prescribed circumstances. The exemption must be claimed — it is not automatic.

Renter's Tax Credit

BC renters who pay rent for their principal residence in BC can claim the BC Renter's Tax Credit. The credit provides up to $400 per household (reduced at higher incomes). It is a refundable credit claimed on the provincial T1 return. Landlords do not need to do anything — renters claim the credit directly based on their actual rental payments.

Speculation and vacancy tax

The SVT applies to residential properties in specified urban areas of BC that are not used as a primary residence and are not rented out for at least six months of the year. The rate for BC residents is 0.5%; for foreign owners and satellite families (those earning income primarily outside Canada), the rate is 2%. The 2023 increase in the satellite family rate raised it from 1% to 2%.