The B.C. home-flipping tax is now in place to discourage investors from buying housing to turn a quick profit. People who sell their home within two years of buying will be subject to the tax unless they qualify for an exemption, such as divorce, job loss or change in household membership.
The BC home flipping tax applies to net taxable income from the sale of taxable property that was owned for less than 730 days. The tax rate is 20 percent of net taxable income earned from a property sold within 365 days, and the rate decreases over the next 365 days.
The tax doesn’t apply at 730 days. The Province expects approximately 4,000 properties will be taxed in 2025, with money going into strengthening housing programs and building new affordable homes.
“The B.C. home-flipping tax is just one more tool in our toolbox to help people find affordable housing,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “We’re working to deliver more homes so the people who keep our communities working, like teachers, nurses and construction workers, can find a place to live they can afford in the communities they love.”
The province says it has implemented other measures to increase the housing supply. In April 2024, it created new thresholds for the first-time homebuyers’ program and the newly built home exemption.
The first-time homebuyers’ program threshold was increased to $835,000 from $500,000. Qualifying individuals will receive an exemption on the property transfer tax on the first $500,000 of the home’s value. Since April 1, more than 22,000 first-time home buyers – an increase from approximately 9,500 in 2023 – were helped into their homes through this program, saving as much as $8,000 in property transfer tax.
To encourage the construction of new homes, the threshold for the newly built home exemption was increased from $750,000 to $1.1 million. In 2024, this helped approximately 10,300 purchasers buy new homes, nearly 3,000 more than last year.
New purpose-built rental buildings of four units or more, purchased between Jan. 1, 2025, and Dec. 31, 2030, may also qualify for an exemption from the general property transfer tax.
“Everyone should be able to afford a home in their chosen community, but high home costs and real estate speculators are making that a challenge,” said Brenda Bailey, Minister of Finance. “We are working to ensure there are more affordable homes available for people, whether they’re renting or buying, through measures like the B.C. home-flipping tax and property transfer tax exemptions.”
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