BC Home Flipping Tax 2025: What Every Homeowner Should Know Before Selling

by Taylor Ross

What is the BC Home Flipping Tax?

Starting January 1, 2025, the BC Home Flipping Tax will apply to homes, condos, and townhouses sold within two years of purchase. This tax is designed to reduce housing speculation, stabilize prices, and encourage long-term ownership.

If you're planning to buy or sell property in British Columbia, here's what you need to know.

Who Does the Tax Apply To?

This tax applies to anyone selling residential property within two years of buying it. It includes:

Homeowners
Real estate investors
People selling pre-sale contracts or property assignments

It doesn’t matter whether you live in BC, elsewhere in Canada, or another country—everyone is subject to this tax if they sell property in BC within two years of purchase.

How Much is the Tax?

The tax is based on profits from the sale and follows a sliding scale:

Sold within 1 year (365 days): You’ll pay 20% tax on your profit.
Sold between 1–2 years (366–730 days): The tax decreases the longer you hold the property.
After 2 years: The tax no longer applies.

Example:

You buy a townhouse in February 2024.
You sell it in May 2025, after 15 months.
You’ll need to pay a reduced tax rate on the profit you make from the sale.

Who is Exempt from the Tax?

While the tax applies broadly, there are important exemptions, including:

Primary Residence: If it’s your main home, you might qualify (specific conditions apply).
Life Changes: Job relocation (100+ km), divorce, or separation.
Serious Illness or Disability: Medical reasons requiring you to sell.
Death of a Homeowner: If the owner passes away and the home is sold.
Government Expropriation: When the government takes over property for public use.

If you believe you qualify for an exemption, you’ll need to provide proper documentation when filing your tax return.

What Should Homeowners Do Next?

Plan Ahead: If you're considering selling a home within two years, calculate how the tax might affect your profits.
Document Everything: Keep records of your purchase price, sale expenses, and any qualifying exemption details.
Talk to a Professional: A tax advisor or real estate expert can help ensure you're prepared.

Why is This Tax Being Introduced?

The BC government aims to:

Reduce short-term speculative activity in the housing market.
Encourage long-term homeownership over quick profit sales.
Stabilize housing prices for local buyers.

This tax isn’t about penalizing homeowners—it’s about creating a fairer housing market for everyone.

Final Thoughts

The BC Home Flipping Tax is a significant change that will impact homeowners, buyers, and sellers across the province. Whether you're considering a sale or simply planning ahead, knowing the rules can help you avoid unexpected costs.

If you're unsure about how this new tax applies to your situation, reach out to Vancouver real estate advisor Taylor Ross or a tax professional—it’s always better to have clarity upfront.

Smart planning today means fewer surprises tomorrow!