By Sean Phillips, REALTOR®, Strand resident ·
Short answer: Yes. Vernon (along with Coldstream and several other Okanagan communities) became a taxable area for BC's speculation and vacancy tax (SVT) starting with the 2025 tax year. Most owners who live in their home are exempt but must still file a declaration each year. Second homes that sit empty for much of the year, which includes many owned by out-of-province buyers, may owe the tax.
What is the speculation and vacancy tax?
The SVT is an annual provincial tax on residential property in designated areas that isn't used as a principal residence or rented out long-term. It's meant to encourage owners to live in or rent out homes rather than leave them empty.
Who has to file a declaration?
Every owner on title for residential property in a taxable area must complete a declaration each year, even if they're exempt. The province sends instructions early in the year, and declarations are typically due by March 31. If you don't declare, you can be charged the tax.
Common exemptions
- Principal residence: the home you live in most of the year
- Long-term rental: generally, a property rented to arm's-length tenants for at least six months of the year, in periods of at least 30 consecutive days
- Other exemptions exist for specific situations, such as some new owners, strata properties with rental restrictions, and certain life events
Short-term vacation rentals generally don't count toward the rental exemption.
What it means for second-home buyers
If you live in Alberta or elsewhere and your Vernon condo sits empty for most of the year, the SVT may apply. Rates depend on your residency status, and foreign owners pay a higher rate than Canadian citizens and permanent residents. Check the current rates on the province's SVT website and talk to an accountant before you buy. See my guide to buying a second home in the Okanagan from Alberta.
Frequently asked questions
Does the speculation and vacancy tax apply in Vernon?
Yes. Vernon became a taxable area starting with the 2025 tax year.
Do I have to file an SVT declaration if I live in my home?
Yes. All owners on title in a taxable area must declare each year, even if they qualify for an exemption.
Does renting on Airbnb make me exempt from the SVT?
Generally no. The rental exemption usually requires renting to arm's-length tenants for at least six months of the year in periods of 30 or more consecutive days.
More guides to Okanagan Landing and The Strand
- Buying a Second Home in the Okanagan From Alberta: What to Know
- Can a BC Strata Stop You Renting Your Condo? Bill 44 Explained
- Can You Rent Out Your Condo at The Strand Lakeside?
- The Strand Lakeside FAQ: 50 questions answered
Have a question about waterfront living in Vernon?
I'm Sean Phillips, a REALTOR® with Coldwell Banker Executives Realty. I live at The Strand in Okanagan Landing and specialise in Vernon-area waterfront condos. For current listings and recent sales, visit 7343okanaganlanding.ca.
Text Sean: 778-363-0542
Call or text Sarah, my 24/7 info line: 604-227-4810
This article is general information as of fall 2026, not legal, tax or financial advice. Rules, fees and conditions change, so always confirm details with the appropriate professional or authority before making a decision.
General information only, not legal, tax or financial advice. Confirm details for your situation with the appropriate professional.
