The 2026 Tax Update: What BC's Speculation and Vacancy Tax Means for Central Saanich Homeowners

The BC Speculation and Vacancy Tax (SVT) generates more confusion — and more anxiety — than almost any other real estate policy topic in the province. And with the 2026 updates now in effect, many Central Saanich homeowners with secondary properties, seasonal cottages, or rental units are trying to understand where they stand.

The short version: most Central Saanich primary homeowners are unaffected. But there are specific situations where the tax does apply, and understanding them is important before you make decisions about a secondary property, a long-term rental, or an estate situation.

How the SVT Works in 2026

The Speculation and Vacancy Tax is an annual tax that applies to residential properties in designated areas of BC. The goal is to discourage properties from sitting vacant or being used as speculative investments rather than contributing to the housing supply. In 2026, the tax rate is 2% of a property's assessed value for foreign owners and satellite families, and 0.5% for Canadian citizens and permanent residents who are not using a property as their primary residence and cannot claim an exemption.

The first and most important question for any Central Saanich homeowner: is your municipality included in the SVT designated area? The current SVT designated areas include Metro Vancouver, the Capital Regional District (which includes all of Saanich Peninsula), and a number of other urban areas. Central Saanich falls within the Capital Regional District — so yes, it is subject to the SVT framework.

Who Is Exempt

The vast majority of Central Saanich homeowners owe nothing under the SVT, because the primary residence exemption is broad and easy to claim. If a property is your principal residence — the home where you live the majority of the year — you are exempt from the SVT, full stop.

Other common exemptions include: properties owned by qualifying seniors in long-term care facilities, properties undergoing major renovation (with valid building permits), properties that are rented to arm's-length tenants for a qualifying portion of the year, and properties that are the principal residence of a relative. The key in all cases is that the exemption must be actively declared each year through the province's annual online declaration process.

Where It Gets Complicated: Secondary Properties

The situations where Central Saanich homeowners need to pay closer attention involve secondary properties — a vacation property, a cabin, a piece of land with a structure, or a condo that was purchased as an investment. If none of the exemptions apply to that property, the SVT applies at the Canadian citizen rate of 0.5% of assessed value per year.

On a property assessed at $500,000 — roughly the condo benchmark in Central Saanich — that's $2,500 per year in additional tax. On a $1.15M assessed property, it's $5,750 annually. These are meaningful numbers, and they affect the carrying cost calculation for anyone holding a secondary property that isn't rented or occupied by a family member for the qualifying minimum period.

The Long-Term Rental Exemption and Its Implications

Properties that are rented to a tenant on an arm's-length, long-term basis (typically defined as a tenancy of at least six consecutive months) qualify for an SVT exemption. This has had a meaningful effect on the Central Saanich secondary property market: some investors who had previously kept a unit vacant or used it occasionally for personal use are now renting it out full-time to qualify for the exemption.

For the rental market, this is a net positive — more supply. For property owners, it means the math around carrying a vacant secondary property has changed significantly, and the decision to rent vs. hold vs. sell is worth revisiting with a tax professional.

Practical Next Steps

The most important thing any Central Saanich homeowner with a secondary property can do in 2026 is file the annual SVT declaration on time and accurately, and consult with a BC-qualified accountant or tax advisor about whether an exemption applies to their specific situation. The SVT rules have nuances — particularly around estate situations, family transfers, and properties held in corporations — that require professional advice.

From a real estate perspective, the SVT is increasingly factoring into buyer decisions about secondary properties on the Peninsula. Understanding the ongoing tax obligations of a potential purchase is now a standard part of the due diligence process.

Questions about how the SVT might affect your Central Saanich real estate plans? Reach out to Dan Juricic for a conversation, or explore current Central Saanich listings to see what's available.

This post is for general information only and does not constitute tax advice. Please consult a qualified BC tax professional for guidance specific to your situation.

Central Saanich Market Snapshot — February 2026

Source: Victoria Real Estate Board, February 2026. MLS® HPI Benchmark Prices reflect the value of a typical home and are more reliable than average or median prices for tracking market trends.