In effect since January 1, 2025, BC's flipping tax catches sellers who owned less than two years — but life-event exemptions are broader than most people realize.
In brief
BC's home-flipping tax applies if you sell a residential property within 730 days (2 years) of buying it: 20% of the net profit if sold within 365 days, sliding down to 0% at 730 days. It's separate from federal capital gains (both can apply), and life-event exemptions cover death, illness, divorce, job loss/relocation, bankruptcy, and several other situations. A return is due within 90 days of the sale even to claim an exemption.
BC's Residential Property (Short-Term Holding) Profit Tax — the home-flipping tax — has been in effect since January 1, 2025. It catches anyone selling residential property within two years of buying it, including pre-sale buyers selling on completion. The exemptions are real and worth checking before you assume you owe it.
The tax is applied to the net taxable profit on the sale — sale proceeds minus original cost minus selling costs. The rate then depends on how long you owned the property:
The full 20% rate applies to sales within 365 days of acquisition. After that, the rate declines on a straight-line basis to 0% at day 730. So a sale on day 500 would be taxed at roughly 9% on the net profit; a sale on day 700 at roughly 1%.
| Days owned at sale | Tax rate on profit | Example tax on $80,000 profit |
|---|---|---|
| 1–365 days | 20% | $16,000 |
| 365 days (~1 year) | 20% | $16,000 |
| 548 days (~1.5 years) | ~10% | $8,000 |
| 700 days | ~1.6% | $1,300 |
| 730+ days (2 years +) | 0% | $0 |
Several automatic exemptions (no filing required): reserve lands, treaty lands, charities, co-ops, government, and property used exclusively commercially. Then a longer list of filing-required life-event exemptions — you still file the return but claim the exemption on it:
Death, serious illness or disability, job relocation, marriage or relationship breakdown, addition to the household, job loss, threat to personal safety, bankruptcy or insolvency, foreclosure, expropriation, or destruction of the home. There's also a primary-residence deduction (up to $20,000) for sellers who lived in the property for at least 365 consecutive days.
No, it's separate. The BC home-flipping tax is provincial, applied to the full profit at the rates above. Federal capital gains tax is separate: 50% of the gain × your marginal rate (typically 20–30% effective). Both can apply to the same sale if you sell within 730 days and the property wasn't your principal residence.
On a $100,000 profit sold within 365 days, you could face roughly $20,000 in BC flipping tax plus roughly $15,000–$20,000 in federal capital gains tax. The principal residence exemption applies only to the federal portion — not the BC flipping tax (though the primary-residence deduction reduces it).
The tax applies based on the sale date, not the purchase date. A property bought in 2023 and sold in 2025 within 730 days of purchase can still be subject to the tax. The transition matters: people who bought during the 2021–2022 peak and now need to sell quickly are squarely in the catchment.
A BC home-flipping tax return is due within 90 days of the sale closing, even if you're claiming an exemption. Filing is through the BC tax portal; many sellers handle it via their accountant. Late filing penalties apply.
If you're not sure whether you owe it or qualify for an exemption, file the return and claim the exemption — that's the safer path. Don't ignore the deadline.
Yes. For pre-sale purchases the 'acquisition' generally counts from the completion date. Assignments are also captured — assigning a pre-sale contract within 730 days of signing can trigger the tax on the assignor's profit, even before completion.
If you're navigating a pre-sale problem, see stuck in a pre-sale or assignment for the full options.
When did the BC home-flipping tax start?
January 1, 2025. It applies to residential property sold on or after that date if held for less than 730 days at the time of sale.
How much is the BC home-flipping tax?
20% of net profit if sold within 365 days, declining on a straight-line basis to 0% by 730 days. So roughly 10% at day 548 and 1.6% at day 700.
Is the BC flipping tax the same as federal capital gains tax?
No, separate. Federal capital gains tax is 50% × the gain × your marginal rate; the BC flipping tax is its own rate on net profit. Both can apply to the same sale.
Am I exempt if I had to sell because of a job change or divorce?
Likely yes. The life-event exemptions include job relocation, job loss, marriage or relationship breakdown, death, serious illness, threat to safety, bankruptcy, foreclosure, expropriation, and home destruction. You file the return and claim the exemption.
Does the home-flipping tax apply if the home was my principal residence?
There's a primary-residence deduction (up to $20,000) for sellers who lived in the property for at least 365 consecutive days. The federal capital gains principal residence exemption does not eliminate the BC tax — only the deduction reduces it.
Do I have to file a return if I think I qualify for an exemption?
Yes. The return is due within 90 days of sale closing even when claiming a filing-required exemption. Only the automatic exemptions (reserve lands, charities, government, etc.) skip the filing requirement.
Does the flipping tax apply to a pre-sale assignment?
Yes — an assignment within 730 days of the original signing can trigger the tax on the assignor's profit. The completion date generally serves as the acquisition date for the assignee.
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This page is general information, not legal, tax, or financial advice, and figures are current as of May 2026 and subject to change. Every home and situation is different — confirm specifics with a qualified real estate lawyer, accountant, or the relevant authority (BC Government, CRA) before acting. Sebastian Czarkowski is a licensed REALTOR® (BCFSA), not a lawyer or tax advisor.