The short answer: yes, Kamloops is in BC's speculation and vacancy tax area, and has been since the 2024 tax year. Every residential owner in the city must declare by 31 March each year, even if they owe nothing. Most owners don't pay: your principal residence is exempt, and so is a property rented to tenants for at least six months of the year. If the tax does apply, the 2026 rate is 1% of assessed value for Canadian citizens and permanent residents, double the 0.5% that applied until 2025. A BC-resident owner gets a credit of up to $4,000, which cancels the tax on a home assessed at $400,000 or less.
The tax mostly hits empty or lightly used second homes, such as a cabin, a condo kept for visits, or an investment left vacant between tenants. Because the rate doubled for 2026, the bill on a vacant Kamloops property roughly doubled too.
The speculation and vacancy tax (SVT) is a provincial tax on residential property in designated areas of BC. It is charged on a property's assessed value according to how the owner used it during the calendar year. It is separate from municipal property tax and from the property transfer tax you pay on purchase.
This is general information, not tax advice. Jagatjeet is working toward a BC real estate licence and is not a licensed agent or tax adviser. For your own situation, read the gov.bc.ca pages linked below or ask an accountant.
Does the speculation tax apply in Kamloops?
Yes. The province announced on 22 November 2023 that the tax would expand to Kamloops and 12 other communities. Owners there declared for the first time in January 2025, based on how they used their property in 2024.
Most of the BC Interior's larger centres are now covered. The province's list of taxable areas includes:
| Region | Taxable areas |
|---|---|
| Thompson | City of Kamloops |
| Central Okanagan | City of Kelowna, City of West Kelowna, District of Lake Country, District of Peachland |
| North Okanagan and Shuswap | City of Vernon (Predator Ridge excluded), District of Coldstream, City of Salmon Arm |
| South Okanagan | City of Penticton, District of Summerland |
Merritt, Revelstoke and the Kootenay cities are not on the list. Use the province's location map to check a specific address, because the boundary follows municipal limits.
How much is the speculation tax in 2026?
The rate depends on who owns the property and which year's use you are declaring:
| Owner | 2019–2025 | 2026 | From 1 January 2027 |
|---|---|---|---|
| Canadian citizen or permanent resident | 0.5% | 1% | 1% |
| Foreign owner or untaxed worldwide earner | 2% | 3% | 4% |
An untaxed worldwide earner is the province's term for an owner whose household reports most of its income outside Canada, which includes members of a satellite family.
The tax follows ownership on 31 December and is due the following July. Tax on 2026 use is declared by 31 March 2027 and paid in July 2027.
What is the $4,000 credit?
If no exemption applies, a BC resident may still get a non-refundable credit. To qualify, you must be a Canadian citizen, permanent resident or confirmed BC Provincial Nominee who is a BC resident for income tax purposes and not an untaxed worldwide earner.
- From the 2026 tax year: up to $4,000 per person, split by ownership share.
- For 2025 and earlier: up to $2,000.
The province notes that the credit reduces the tax to zero on a property assessed at $400,000 or less at the 1% rate. Owners outside BC who report BC income, foreign owners and some corporations can claim a separate credit for other owners.
A worked example
This is a worked example, not a real property. Say you live in Kelowna and own a Kamloops condo assessed at $650,000. It sat empty for most of 2026, and no exemption applies.
| 2025 use | 2026 use | |
|---|---|---|
| Rate | 0.5% | 1% |
| Tax before credit | $3,250 | $6,500 |
| BC resident credit | −$2,000 | −$4,000 |
| Tax due | $1,250 | $2,500 |
Rent the same condo to a tenant for six months of 2026 and the tax is zero. You still have to declare.
Who is exempt?
The province lists more than a dozen exemptions. These are the ones most Kamloops owners will use:
- Principal residence. The home you live in most of the year is exempt if you are a Canadian citizen or permanent resident, a BC resident for income tax purposes, and not an untaxed worldwide earner. You can only claim one principal residence, the one you live in longest in the year.
- Occupied by a tenant. Tenants must live there for at least six months of the year, in tenancies of at least one month each. You can combine several tenants across the year. Renting a suite or a cottage on the property exempts the whole property.
- Family living there. For Canadian owners, a family member who lives there most of each month with your permission can count as a tenant, even without paying rent.
- Just bought or inherited. There are exemptions for the year you buy or inherit, and for separation, divorce, death of an owner, or a home made uninhabitable by a disaster.
One trap catches strata investors. Until 2021, strata bylaws that banned rentals gave owners an exemption. That exemption is phased out. And BC voided most strata rental-restriction bylaws in November 2022, so a strata unit you could rent but leave empty is taxable.
How to declare
- Watch for the letter. The province mails declaration letters early in the year and says all should arrive by late February. Each owner on title gets their own.
- Declare by 31 March. Every residential owner in a taxable area declares every year, online or by phone, even if nothing changed. You can't declare until your letter arrives. If you miss the date, the province generally allows up to three years to submit or correct a declaration, but don't rely on that.
- Pick your exemption. Choose the one that fits how you used the property. Each co-owner claims separately, and different owners can claim different exemptions.
- Keep proof. For a tenancy exemption, keep tenancy agreements and rent records. For a principal residence, keep anything showing you lived there. The province can ask for documents.
- Pay by July if you owe. If no exemption applies, the credit is applied automatically for eligible BC residents, and any balance is due in July.
Could the rates change after the election?
Possibly. BC votes on 24 October 2026. The BC NDP's platform, announced on 25 September, proposes raising the tax by one percentage point. That would take it from 1% to 2% for domestic owners of secondary properties, and from 4% to 5% for foreign owners. It also proposes a new tax on developer-owned condos that stay unsold for more than a year. According to Canadian Press coverage that day, the condo-tax plan drew criticism from the Conservatives and mixed reaction from experts.
Nothing changes until a government passes legislation. This post describes the law as of 18 October 2026, and the rate table above is the one in force.
Common questions
Does Kamloops have a speculation and vacancy tax?
Yes. Kamloops was added for the 2024 tax year, announced on 22 November 2023, and owners first declared in January 2025. Every residential owner in the city must declare by 31 March each year. Most are exempt because the property is their principal residence or is rented for at least six months.
What is the speculation tax rate in 2026?
For the 2026 tax year it is 1% of assessed value for Canadian citizens and permanent residents, up from 0.5%, and 3% for foreign owners and untaxed worldwide earners. From 1 January 2027 the foreign rate rises to 4%, while the rate for Canadians stays at 1%.
Do I pay speculation tax on a rental property in Kamloops?
Not if tenants live there for at least six months of the year, in tenancies of at least one month each. Renting a suite on the property exempts the whole property. You still have to file the annual declaration by 31 March and claim the tenancy exemption.
How much is the speculation tax credit for BC residents?
From the 2026 tax year, up to $4,000 per eligible BC-resident owner, split by ownership share, up from $2,000. It is non-refundable and applied automatically. At the 1% rate it cancels the tax on a property assessed at $400,000 or less.
Do I have to declare if I live in my Kamloops home?
Yes. Every residential owner in a taxable area declares each year, including owners who live in the home. Declaring is how you claim the principal residence exemption. The deadline is 31 March, and each owner on title declares separately.
The honest summary
For most Kamloops owners, the speculation tax is a five-minute declaration every March. It becomes a real cost only when a property sits empty, and since 2026 that cost has doubled. If you hold a second property in Kamloops or the Okanagan, decide before year-end whether it will be rented, used by family or left empty. Then keep the paperwork that proves it.
If you're working out whether a rental pays at all, start with what a BC Interior rental costs per month and whether a secondary suite still pays. Buying costs are in property transfer tax for investors, and the latest prices are in the September 2026 Kamloops market update.
Sources: Taxable areas (gov.bc.ca) · Tax rates (gov.bc.ca) · Tax credit for BC residents (gov.bc.ca) · Exemptions for individuals (gov.bc.ca) · Tenancy requirements (gov.bc.ca) · CFJC Today, 22 November 2023
Written by Jagatjeet, a web architect and digital marketer in Kamloops, BC, who is working toward a BC real estate licence and learning in public. Jagatjeet (jagatjeet.com) is not a licensed agent, accountant or tax adviser. Published 18 October 2026. This is general information, not tax, legal or financial advice.