Anti-Flipping Tax – Provincial – Starting January 1, 2025 , If a property is sold after January 1, 2025 and was only owned/lived in less than a 1 year you will pay a 20% provincial tax on the profits. This tax declines to zero after 24 months BC anti Flipping Tax.
Exemptions to this tax are; Separation or divorce, Death, Disability or illness, Relocation for work, Involuntary job loss, Change in household membership, Personal safety, Insolvency.
Anti-Flipping Tax – Federal – If bought and sold within 1 year, the profit is taxed as Income. No capital gains exemption and no Principal residence exemption Federal Flipping Rules
All other BC taxes on Real Estate:
GST – 5% tax on new, never lived in or substantially renovated properties. With a 36% rebate on new homes up to $350,000 purchase price GST Info & Calculator Also GST is (may) be payable on the sale of vacant land. Examples of when G.S.T. would be applicable include:
1) the sale of land that is capital property that had been used primarily in a business;
2) the sale of land in the course of a business; and
3) the sale of a parcel of land created by subdividing another parcel into more than two parts. The sale of land by an individual that had been kept for personal use would be exempt from G.S.T.
Sale of Farm land. Farmland GST ?
PTT (Property Transfer Tax) – 1% on the first $200,000 of purchase price plus 2% up to $2,000,000 plus 3% from $2,000,001 to $3,000,000. Plus 5% over $3,000,000 PTT Info & Calculator
Under-Used Housing Tax – Federal – a 1% tax on Vacant or ‘underused’ housing. “Under used” is defined as less than 180 days in a year. You will be exempt if “The property was occupied by certain parties for at least 180 days in the year, made up of one or more periods that are at least one month long.” Fed’s Underused tax info
Speculation & Vacancy Tax – 2% of the fair market value for satellite families and foreign owners. OR 0. 5% for Canadian citizens. To avoid the tax you must rent out your non-principal residence, for at least 6 months of the year.
This tax applies to areas:
- The Metro Vancouver Regional District (Vancouver, Surrey, etc.)
- The Capital Regional District (Victoria, Saanich, etc.)
- The City of Abbotsford
- The District of Mission
- The City of Chilliwack
- The City of Kelowna
- The City of West Kelowna
- The City of Nanaimo
- The District of Lantzville
And expanding in 2024 to ;
- Lions Bay
- North Cowichan
- Ladysmith
- Lake Cowichan
- Squamish
- Duncan
BC Speculation and Vacancy Tax
Vancouver Vacant Homes Tax: – Applies to the City of Vancouver only. Started in 2017 at 1% of the tax assessed value and is now 3% of that value.
A Vancouver ‘vacant home’ is one that is unoccupied for more than 6 months in calendar year.
Foreign Buyer Tax. The BC Foreign Buyers Tax is a 20% tax added to the property Transfer Tax when a foreign citizen or non-permanent resident of Canada purchases a residential property in the following areas; Foreign Buyer Tax areas
“School Tax” – BC introduced the ‘School tax’ in 2016 – funds collected go into General Revenue’ – and spent on ?? It amounts to 0.2% of your assessed value from $2 million to $4 million plus .4% of your value over $4 million. And, as it is not indexed to inflation (like the PTT), it may end up applying to the majority of BC properties – not just the high end properties. BC School Tax info
Translink – As of Jan.1, 2023 Translink collects (through your municipal property tax remissions .2172 times the value of your property divided by 1000. So a $1 million dollar property will pay $217.20 per year.
Municipal Property Taxes – in Coquitlam for 2024 the City is proposing a 7.7% (base) property tax lift – Citing Unprecedented growth and high inflation in Coquitlam are prompting a proposed 10.79 per cent hike in property taxes next year — if all asks are approved.
The 2023 Coquitlam residential rate is: .392% of your property’s value. So a $1,000,000 home would pay $3920 in annual property taxes. (plus water & sewer taxes, Translink, etc)