Effective January 1, 2025 — who it hits, the declining rate, and the exemptions
The short answer
The BC home flipping tax (effective January 1, 2025) taxes the profit when you sell a residential property you have owned for less than 730 days (two years). The rate is 20% of the profit if you sell within 365 days, then declines steadily to 0% between day 366 and day 730. It applies on top of any federal rules and is separate from capital gains.
BC introduced this tax to discourage short-term speculation. It applies to the net taxable income (profit) from selling residential property — including a presale contract assignment — within two years of acquiring it. Importantly, it is a distinct BC tax: it does not replace the federal property-flipping rules or capital gains, and you could be subject to more than one.
The longer you own before selling, the lower the rate — reaching zero once you have owned for 730 days.
| Ownership period before sale | Tax rate on profit |
|---|---|
| 365 days or less | 20% |
| 366 to 729 days | Declines steadily from 20% toward 0% |
| 730 days (2 years) or more | 0% — tax does not apply |
The tax applies to profit from disposing of residential property in BC, including presale (assignment) contracts, owned for under 730 days. It taxes net taxable income from the sale — broadly, your gain after eligible costs — not the full sale price.
It applies regardless of whether the property was your principal residence, although a principal-residence deduction and various exemptions can reduce or eliminate the tax for genuine homeowners (see below). It is reported and paid to the BC government.
The BC home flipping tax is separate from the federal property-flipping rule (which can treat gains on property sold within 12 months as fully taxable business income) and separate from regular capital gains tax. A quick resale could, in principle, attract more than one.
Because of this layering, anyone considering selling within two years of buying should get tax advice before listing — the combined effect can be substantial, and the exemptions are fact-specific.
BC built in exemptions for people who sell early due to life circumstances rather than speculation. These commonly include:
What is the BC home flipping tax?
A BC tax effective January 1, 2025 on the profit from selling residential property owned less than 730 days (two years). It is meant to discourage short-term speculation and is separate from federal flipping rules and capital gains.
How much is the BC home flipping tax?
It is 20% of the profit if you sell within 365 days of buying, then the rate declines steadily to 0% between day 366 and day 730. Sell after owning two years or more and the tax does not apply.
When did the BC home flipping tax start?
January 1, 2025. It applies to sales on or after that date of property owned for less than 730 days, including some properties bought before 2025 if sold within the window.
Does the flipping tax apply to my principal residence?
It can apply regardless of principal-residence status, but there is a principal-residence deduction and a set of life-event exemptions (death, illness, divorce, job relocation, and more) that can reduce or eliminate the tax for genuine homeowners. Get advice for your situation.
Is the BC flipping tax the same as the federal one?
No. The BC home flipping tax is separate from the federal property-flipping rule and from capital gains tax. A sale within two years could attract more than one — which is why tax advice before selling matters.
Does the flipping tax apply to presale assignments?
Yes — profit from assigning a presale (pre-construction) contract within the 730-day window can be subject to the tax. Confirm the specifics with a tax professional before assigning.
This page is general information, not tax, legal, or financial advice, and figures are current as of May 2026 and subject to change. Tax rules have exemptions and conditions that depend on your situation — always confirm with the BC Government, the CRA, and a qualified tax professional or real estate lawyer before acting. Sebastian Czarkowski is a licensed REALTOR® (BCFSA), not a tax advisor.