Detailed impact analysis and policy breakdown
20% tax on income from properties sold within 365 days of purchase, sliding scale up to 730 days.
British Columbia introduced a tax on profits from the sale of residential real estate sold within 2 years of purchase. The tax rate is 20% for homes sold within the first year (365 days) and declines to 0% by the end of year two.
The goal is to discourage "flippers" who buy undervalued homes, do cosmetic renovations (or nothing at all), and resell for a quick profit. This behaviour adds no inventory but inflates prices for end-users.
Cooling Effect: We have already seen a reduction in short-term transaction volume. Investors are holding properties longer to avoid the tax. This reduces the artificial "churn" that can make markets look hotter than they are.
The government included reasonable exemptions for "life events" such as divorce, death, disability, or job relocation, ensuring regular families aren't penalized for unforeseen circumstances.