The B.C. government says the speculation and vacancy tax is continuing to free up housing and curb market speculation, according to its latest annual report.

The report, shared with mayors in communities where the tax applies, suggests property owners are changing their behaviour by moving into vacant homes, renting them out long-term, or selling them.

The speculation and vacancy tax currently applies in 59 B.C. communities, including Courtenay, Comox, and Cumberland.

The province says more than 99 percent of property owners who live in B.C. did not have to pay the tax in its seventh year.

Exemptions for principal residences or homes occupied by tenants increased by nearly 200,000, largely due to the expansion of the tax into 13 additional communities in 2024.

Finance Minister Brenda Bailey says housing affordability remains a top priority and that the tax is helping ensure homes are being used by people who live and work in British Columbia, rather than sitting empty for speculation.

Revenue from the tax continues to be directed into affordable housing projects in the same regions where the tax applies.

The speculation and vacancy tax raised $79.6 million in 2024, bringing total revenue to about $550 million since being introduced.

The province has also confirmed changes coming in 2026. Foreign owners and owners with most of their income not reported in Canada will see the tax rate increase to 3 percent, up from 2 percent.

Canadian citizens and permanent residents with empty or underused homes will see their rate rise to 1-percent, up from 0.5 percent.

At the same time, the tax credit for B.C. residents will double from $2 thousand to $4 thousand for those who don’t qualify for one of the more than 20 existing exemptions.

To learn more, visit Government of British Columbia.