Property Transfer Tax
Exemption for First Nation Property Ownership
Effective May 21, 2024, a First Nation that is a band under the federal Indian Act is exempt from property transfer tax when transferring legal ownership of a property to the First Nation if the property is already beneficially owned by the First Nation. The exemption only applies to land beneficially owned by the First Nation prior to May 21, 2024.
Speculation and Vacancy Tax Act
New Speculation and Vacancy Tax Rates
Effective January 1, 2026, the Speculation and Vacancy Tax rate for Canadian citizens and permanent residents who are not untaxed worldwide earners, as well as others currently taxable at 0.5 per cent will increase from 0.5 per cent to 1 per cent. The rate for foreign owners and untaxed worldwide earners, as well as others currently taxed at 2 per cent, will increase from 2 per cent to 3 per cent.
The new tax rates will apply to the Speculation and Vacancy Tax payable by property owners based on the use of their residential properties during the 2026 calendar year and onward, and will not impact taxpayers declaring based on the use of their residential properties in 2025 or before. The non-refundable speculation and vacancy tax credit for residents of British Columbia will also be increased from $2,000 to $4,000.
Predator Ridge Excluded from Speculation and Vacancy Tax Specified Area
Effective retroactively to January 1, 2024, the Predator Ridge resort in the City of Vernon is excluded from the specified area for the Speculation and Vacancy Tax.
Provincial Sales Tax Act
Exemption for Used Zero-Emission Vehicles
Effective May 1, 2025, used zero-emission vehicles will be subject to provincial sales tax. The exemption for used zero-emission vehicles that was introduced in Budget 2022 was originally scheduled to end in 2027.
Small Business Venture Capital Act
Small Business Venture Capital Program Budget
Effective for the 2025 to 2027 calendar years, the total annual amount of tax credits that may be approved under the small business venture capital program is temporarily increased by $15 million to $53.5 million.
Other Technical Measures
Other technical changes were included in Budget 2025 to clarify amendments that were previously announced.