The short answer
Since January 1, 2025, BC taxes the profit from selling a residential property or presale contract owned for less than 730 days. The rate is 20% within 365 days and slides to zero at 730 days, with a deduction of up to $20,000 if the home was your primary residence for at least 365 consecutive days. A separate BC return is due within 90 days of the sale, even if you owe nothing.
Check current rules: The Province last updated these pages in 2026 and changed wording from “purchase/sale” to “acquire/dispose”. Check the current pages before you list.
In plain English
The BC home flipping tax is a provincial tax under the Residential Property (Short-Term Holding) Profit Tax Act.
It applies to individuals, corporations, partnerships and trusts, whether or not they live in BC, when they dispose of a taxable property in BC that they owned for less than 730 days.
Taxable property is broad. It covers a beneficial interest in residential property and the right to acquire one, which includes assigning a presale contract or a purchase contract for a resale home. Leasehold interests and certain exempt locations are outside the tax.
Days are usually counted from completion to completion. The day you acquire is generally the day you pay for the property, which for most people is the completion date, and the day you dispose of it is generally the day you receive the money. For a presale contract bought from a developer, the clock usually starts when you pay the deposit, and that same date counts as the acquisition date of the finished home.
The rate is 20% if you own the property for 365 days or fewer.
Between 366 and 729 days the Province uses this formula: 20% × [1 − (days held − 365) ÷ 365], rounded to the nearest one-thousandth. At 730 days the tax no longer applies.
The tax is on net taxable income: proceeds, minus the cost to acquire, minus the cost to improve, minus a primary residence deduction of up to $20,000 if you qualify. Gifts carry a cost of $0, and a loss is treated as zero.
The deduction is not available when you assign a presale contract.
This is separate from the federal residential property flipping rule, which since January 1, 2023 treats profit on homes held less than 365 consecutive days as business income without the principal residence exemption, unless a life event applies.
The BC tax is not harmonized with federal or BC income tax and has its own return.
How it works
Count your days of ownership
Start with the day you acquired the property and end with the day you dispose of it.
If the result is more than 729 days, the tax does not apply and no return is needed.
Check whether an exemption fits
Life circumstances such as death, serious illness, separation of at least 90 days, involuntary job loss, an eligible relocation, a change in household or a threat to safety can exempt the sale.
Work out taxable income
Take the proceeds, subtract the cost to acquire and the cost to improve, such as major appliances sold with the home.
Apply the primary residence deduction if you qualify
You need at least 365 consecutive days of ownership and a home you lived in as your primary residence. The deduction is up to $20,000.
Apply the rate for your holding period
Use 20% for 365 days or fewer, or the sliding formula for 366 to 729 days.
File within 90 days through eTaxBC
File the BC home flipping tax return within 90 days of the sale, including when you claim a life circumstance exemption or owe nothing.
Example
Assume a home bought for $700,000 is sold for $780,000 after 500 days, with $10,000 of qualifying improvements, and the owner lived in it as their primary residence. These amounts are assumptions; the method follows the Province’s four steps.
| Proceeds minus cost to acquire minus cost to improve | $780,000 − $700,000 − $10,000 = $70,000 |
|---|---|
| Less primary residence deduction | $70,000 − $20,000 = $50,000 |
| Rate for 500 days: 20% × [1 − (500 − 365) ÷ 365] | 12.603% |
| BC home flipping tax | $50,000 × 12.603% = $6,301.50 |
Had the same home been sold within 365 days, the rate would be 20%, and in the Province’s own worked example a home held under 366 days does not get the primary residence deduction. Federal income tax rules are separate. Confirm your own numbers with an accountant.
Who it applies to, and the exceptions
Usually applies to
- Anyone who sells a BC residential property they owned for less than 730 days, including homes they lived in.
- Presale buyers who assign their contract, counted from the day they paid for the contract.
- Co-owners: each of two joint tenants is treated as disposing of a 50% beneficial interest and files accordingly.
Exceptions and limits
- Life circumstance exemptions still require filing a return.
- Some sellers are exempt without filing, such as registered charities and certain housing bodies, or property in specified First Nations lands.
- Property received from a related person counts the related person’s ownership period, so a long family holding may mean no tax.
Common mistakes
- Thinking a home you lived in is automatically exempt. It can still be taxable, with up to a $20,000 deduction.
- Counting from the date the offer was accepted instead of the completion date.
- Forgetting that a presale assignment counts from the day you paid the developer’s deposit.
- Not filing because you claimed an exemption or had no profit. A return is still required unless the exemption is one that needs no filing.
- Confusing the BC tax with the federal flipping rule. They have different periods, calculations and filings.
Questions people also ask
When did the BC home flipping tax start?
It took effect on January 1, 2025.
Property acquired before that date can still be taxed if it is sold on or after January 1, 2025 within 730 days of acquisition.
Does the flipping tax apply to my own home?
It can. If you owned it for less than 730 days it is taxable unless an exemption applies, but you may deduct up to $20,000 if you owned it at least 365 consecutive days and lived in it as your primary residence.
Does it apply to presale assignments?
Yes. Assigning a right to acquire a residential property, such as a presale contract, is taxable if done within 730 days of acquiring the contract.
What life events can exempt a sale?
The Province lists death or anticipated death, serious illness or disability, separation of at least 90 days, involuntary termination of employment, eligible relocation, a change in household membership, a threat to personal safety, insolvency and certain destruction of the home.
When is the return due?
Within 90 days of disposing of the property, filed through eTaxBC. It is separate from your annual income tax return.
Is this the same as the federal flipping rule?
No. The federal rule applies to homes held less than 365 consecutive days and treats the profit as business income. The BC tax applies up to 730 days and has its own rate, deduction and return.
Official sources
Facts on this page come from the official sources below, reviewed October 6, 2026. Rules, amounts and dates change; confirm the current version and your own eligibility before acting. This is general information, not legal, tax or financial advice.
- BC home flipping taxProvince of British Columbia
- How to calculate your BC home flipping taxProvince of British Columbia
- Days of ownershipProvince of British Columbia
- Life circumstance exemptionsProvince of British Columbia
- File a return for the BC home flipping taxProvince of British Columbia
- Residential property flipping ruleCanada Revenue Agency