BC home flipping tax
BC taxes profit on a home sold within two years. Enter your dates to see your rate.
The province counts the day you acquire and the day you dispose, so a same-day resale is one day. Up to 365 days the rate is 20%. From day 366 the rate is 20% x [1 - (days held - 365) / 365], rounded to the nearest one-thousandth of a percent. From day 730 the tax no longer applies.
| Days held | Rate | Tax on $100,000 profit |
|---|---|---|
| 90 | 20% | $20,000 |
| 365 | 20% | $20,000 |
| 398 | 18.192% | $18,192 |
| 456 | 15.014% | $15,014 |
| 548 | 9.973% | $9,973 |
| 639 | 4.986% | $4,986 |
| 729 | 0.055% | $55 |
| 730 | 0% | $0 |
Enter the day you bought, the day you plan to sell, both prices, and the costs you can deduct. The tax and the first tax-free sale date update as you type.
Home flipping tax at 20% after 274 days held
$11,000
Sell on or after May 31, 2027 and this tax falls to zero. An exemption may remove it earlier; the list is below. Federal income tax on the profit is separate.
Rates verified against gov.bc.ca on 2026-10-06. Arithmetic, not tax advice.
The tax applies to net taxable income, not the sale price. Start with what you received for the home, subtract what you paid to acquire it, subtract the cost of lasting improvements, and subtract the primary residence deduction if you qualify. The result cannot go below zero, and a loss does not create a refund.
Costs to acquire include the property transfer tax you paid (not interest or penalties on it), legal fees, appraisal, land title registration fees, a licensed home inspection, title insurance, a survey, and GST on a new home. Costs to improve cover enduring work on the property, major appliances replaced and included in the sale, and feasibility costs for a new unit or a substantial renovation. Routine repairs and maintenance, insurance, and the financing costs of an improvement do not count.
The primary residence deduction removes up to $20,000 of profit, scaled to your ownership share, when you owned the home for at least 365 consecutive days before selling and lived in it as your primary residence while you owned it. It is not available on the assignment of a presale contract.
A buyer completes on a Burnaby townhouse at $850,000 on June 1, 2025, and sells it for $950,000, completing on July 3, 2026. Transfer tax, legal fees, inspection, and a new roof add up to $45,000 of eligible costs. The home was never their primary residence, so no deduction applies.
| Days of ownership | 398 |
| Rate for those days | 18.192% |
| Sale price | $950,000 |
| Less purchase price | $850,000 |
| Less eligible costs | $45,000 |
| Net taxable income | $55,000 |
| Home flipping tax | $10,006 |
| First tax-free sale date | May 31, 2027 |
Had the same sale completed on May 31, 2027 or later, the provincial tax would be zero. Had it completed inside the first 365 days, the rate would have been 20% and the tax $11,000.
Some you claim on a return. Others are automatic.
If you sell a BC home you owned for fewer than 730 days, you file a home flipping tax return within 90 days of the sale, even when you owe nothing because an exemption or the deduction covers you. Only the automatic exemptions above skip the return.
Filing late costs the greater of $500 or 5% of the balance owing, plus 1% of the balance for each full month late up to 12 months. A repeat late filing doubles both to 10% and 2% per month, capped at 20 months. Unpaid tax carries interest at prime plus 3%.
Under the federal rule, a home held less than 365 days is taxed as business income, with no principal residence exemption.
A sale in the first year can owe both. Ask an accountant how they interact.
On day 730 of ownership, counting both the day you acquired and the day you dispose. Sell on or after that day and the tax is zero. The calculator above shows the exact first tax-free date for your purchase date.
Yes. The acquisition date is the day you pay for the presale contract, and the profit on an assignment is taxable. The $20,000 primary residence deduction is not available on an assignment. If the developer delays completion more than 365 days past the contract date, an exemption is available on a filed return.
Usually yes. Life-event, builder, and related-party exemptions are claimed on a return filed within 90 days of the sale. Only the automatic exemptions, such as property on reserve or Treaty lands, charities, non-profits, and exclusively commercial property, need no return.
No. The federal rule treats profit on a residential property held under 365 days as fully taxable business income with no principal residence exemption. The BC tax is a separate provincial charge over a 730-day window. A sale inside the first year can trigger both.
Written and maintained by Ray Rasouli, REALTOR®, licensed in British Columbia and founder of Relta Real Estate.
Source: MLS® listing data from BC real estate boards (MLS® Reciprocity) and CREA's DDF®.
NOTE: This representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assumes no responsibility for its accuracy. The information contained on this site is based in whole or in part on information that is provided by members of The Canadian Real Estate Association (CREA), who are responsible for its accuracy. CREA reproduces and distributes this information as a service for its members and assumes no responsibility for its accuracy. MLS®, Multiple Listing Service®, and REALTOR® are trademarks of the Canadian Real Estate Association (CREA).
Rates, day counting, deductions, exemptions, and filing rules are read from the Province of British Columbia’s home flipping tax pages on gov.bc.ca and were last verified on 2026-10-06. The federal rule is from section 12 of the Income Tax Act. The calculator is arithmetic on the numbers you enter. Ray Rasouli is a licensed REALTOR® and is not an accountant or a lawyer. Nothing on this page is tax or legal advice.