Kelowna Speculation and Vacancy Tax: 2026 Guide

By the Serenity team. Published October 9, 2026, checked October 9, 2026.

Most useful for: People moving from Alberta or the Lower Mainland, First-time buyers.

The speculation and vacancy tax is the BC tax that out-of-province buyers most often meet only after they own. It is charged once a year, it depends on how the home was used in the previous calendar year and on the owner's tax residency, and it applies in the City of Kelowna, West Kelowna, Lake Country and Peachland, among other places.

Here is how it works for a condo, from the province's own pages, read on October 9, 2026. It is general information; the province's legislation and your accountant decide your case.

Short answer

Yes, it applies. Kelowna is one of BC's designated speculation and vacancy tax areas, so every owner must declare by March 31 each year. A home you live in as your principal residence, or rent to a tenant for at least 6 months of the year, is generally exempt. Otherwise the 2026 rate is 1% of assessed value for Canadian citizens and permanent residents and 3% for foreign owners and untaxed worldwide earners, rising to 4% for that group in 2027.

Rate for 2026, Canadians: 1%; Of assessed value, for citizens and permanent residents who are not untaxed worldwide earners.
Rate for 2026, foreign owners: 3%; Rising to 4% for that group in 2027.
Declaration due: March 31; Every owner declares every year, even when exempt.
BC resident credit from 2026: $4,000; A non-refundable credit, applied automatically.

Rates and rules read from the Government of BC on October 9, 2026.

Who has to declare

Every owner on title declares separately, every year, even when exempt. Letters go out between mid-January and mid-February, the declaration is due by March 31, and any tax owing is due on the first business day in July. If you do not declare, the province charges the tax at its maximum rate.

The tax applies only to property classed as residential and located in a designated area. The province's location map confirms whether a specific address is inside one.

The rates for 2026 and 2027

The rate depends on who you are for tax purposes, not on the property. Untaxed worldwide earners are a category of taxpayer the province defines in its terms and definitions; it includes members of a satellite family.

Speculation and vacancy tax rates, as a share of assessed value
Owner	2019 to 2025	2026	2027
Canadian citizens and permanent residents (not untaxed worldwide earners)	0.5%	1%	1%
Foreign owners and untaxed worldwide earners	2%	3%	4%

Source: Government of BC, tax rates page, read October 9, 2026. The tax is based on ownership on December 31 and on how the home was used during that year.

The exemptions that matter for a condo

Most owners never pay because an exemption applies. These are the ones a condo buyer is most likely to use:

Principal residence: the home you live in for most of the year, if you are a Canadian citizen or permanent resident who is a BC resident for income tax purposes and not an untaxed worldwide earner.
Occupied by a tenant: the home is rented for at least 6 months of the calendar year and meets the province's tenancy requirements.
Year of purchase: the year you take title, if you paid property transfer tax on the purchase or qualified for the newly built home or first time home buyers' exemption.
Moving out of BC: an owner who lived in the home and moved out of the province before the end of the year can often claim the principal residence exemption for that year.

Tax credits that reduce the bill

Owners who are not exempt may still get a non-refundable credit. For BC residents who are Canadian citizens, permanent residents or confirmed BC provincial nominees, and not untaxed worldwide earners, the maximum credit was $2,000 a year through 2025 and is $4,000 from the 2026 tax year, applied automatically.

Owners outside BC, including Albertans with a Kelowna second home, apply separately for a credit based on the BC income they report on a Canadian tax return.

If you are moving to Kelowna from another province

A home you buy before you move is not yet your principal residence for this tax, because the exemption needs you to be a BC resident for income tax purposes. The year-of-purchase exemption covers the year you take title. From the next year on, you need the principal residence exemption, which normally means living in the home and filing taxes as a BC resident, or a qualifying tenancy, or the tax applies at the rate for your category.

The federal Underused Housing Tax no longer applies: owners do not file or pay for 2025 and later years.

How this applies to Serenity

Serenity is a presale at 1085 Martin Avenue, inside the City of Kelowna, so its owners will declare each year once they hold title, and the exemptions above decide who pays. Its strata bylaws, including any rental rules that would affect the tenancy exemption, have not been published.

A yearly declaration checklist

Every owner of a Kelowna home declares every year, including owners who expect to be exempt. Use the list as a yearly prompt, and confirm each rule with the Government of BC before you rely on it.

Speculation and vacancy tax checklist

Tick what you have confirmed for the home you own or are about to buy.

0 of 5 checked

Each year

Have I declared for this home by March 31?Every owner declares each year, even when the home is exempt.
Is it my principal residence, and am I a BC resident for income tax purposes?A principal residence is generally exempt for a Canadian citizen or permanent resident who is not an untaxed worldwide earner.
If I rent it out, did a tenant live there for the required time?A tenancy of at least 6 months of the year generally qualifies the home for an exemption.

In the year you buy

Do I qualify for the year-of-purchase exemption?It covers the year you take title if you paid property transfer tax or qualified for the newly built or first time home buyers' exemption.
Do I know which exemption applies from the following year?Without one, the tax can apply from the year after you take title.

Your ticks stay in this browser and are not sent anywhere. General information, not legal or financial advice.

Questions buyers ask next

Does the speculation and vacancy tax apply in Kelowna?

Kelowna is in BC's speculation and vacancy tax area. Every owner must declare by March 31 each year. For 2026 the rate is 1% of assessed value for Canadian citizens and permanent residents who are not untaxed worldwide earners, and 3% for foreign owners and untaxed worldwide earners, rising to 4% for that group in 2027. A home that is your principal residence, or is rented to a tenant for at least 6 months of the year, is generally exempt.

Do I pay the speculation and vacancy tax if I live in my condo?

Usually not. A home you live in as your principal residence is exempt if you are a Canadian citizen or permanent resident who is a BC resident for income tax purposes and not an untaxed worldwide earner. You still declare every year, even when exempt.

Do I owe the tax in the year I buy?

There is a year-of-purchase exemption for the year you take title, if you paid property transfer tax on the purchase or qualified for the newly built home or first time home buyers' exemption. From the next year on you need another exemption or the tax applies.

What if I move to Kelowna from Alberta?

A home you buy before you move is not yet your principal residence for this tax, because the exemption needs you to be a BC resident for income tax purposes. The year-of-purchase exemption covers the year you take title. After that you need the principal residence exemption or a qualifying tenancy.