How the 2026 Speculation Tax Impacts South Surrey & Langley Real Estate

The 2026 Speculation and Vacancy Tax changes continue to influence ownership decisions across South Surrey and Langley. As more municipalities fall under expanded SVT zones, homeowners and investors must stay informed on how the new requirements may impact rental use, reporting obligations, and carrying costs. Properties left vacant or under-utilized may face increased taxation, making strategic planning essential for long-term ownership.

The Fraser Valley real estate market remains strong, but homeowners should consider rental strategies, principal residence exemptions, and compliance expectations before the new deadlines. Understanding whether a property qualifies for exemptions — including tenanted use, construction periods, or change-of-residency situations — is key to avoiding unnecessary penalties.

Communities such as Grandview, Willoughby, Clayton Heights, and Murrayville continue to see investor interest, but updated taxation policy may shift some buying patterns toward higher-yield rental opportunities. Proactive planning ensures owners remain compliant while maximizing property value.

🔍 What is the Speculation and Vacancy Tax?

The SVT was introduced to target vacant and underused homes, encouraging owners to rent out properties and increase housing supply in B.C. It applies to homeowners in key urban areas — including South Surrey, parts of Langley, and much of the Fraser Valley.

💸 Updated Tax Rates for 2026 and Beyond

According to the Government of B.C., new rates will apply based on your residency status and worldwide income:

• Foreign owners and untaxed worldwide earners:
  🔺 3% of the property’s assessed value

• Canadian citizens or permanent residents (not untaxed worldwide earners):
  🔺 1% of the property’s assessed value

These changes come into effect for the 2026 tax year and will impact taxes payable in July 2027.

👥 What if You Co-Own a Property?

If you share ownership of a property — whether with a spouse, business partner, or through a corporation — the tax owed is calculated based on each individual’s ownership share and tax status. For example, if one of the co-owners is a foreign national or an untaxed worldwide earner, the highest tax rate can apply to the entire corporate or trust ownership group.

Learn more about shared ownership rules here.

🗓 Key Tax Timeline

• Tax Year: January 1 to December 31

• Declaration Deadline: March of the following year

• Payment Due: July 2 following the tax year

So, if you owe tax for 2024, the payment is due July 2, 2025.

✅ Who Is Exempt?

Many property owners are exempt if:

• The home is your principal residence

• The home is rented for at least 6 months of the year (in monthly increments)

• You’re undergoing medical care or residing in a care facility

• The property was inherited or undergoing major renovations

To find out if you qualify, visit the full list of SVT exemptions.

🏡 What Does This Mean for Buyers and Sellers in South Surrey & Langley?

For homeowners with secondary properties or vacation homes, the increased tax rate could make it more expensive to hold onto unused real estate.

For investors, this may influence decisions on property purchases, especially if properties are left vacant or underutilized.

For buyers looking for homes that are exempt or already tenanted, this change may increase inventory as others seek to sell.

For guidance on how the 2026 Speculation Tax may affect your real estate holdings, contact Jared Gibbons for tailored support.