BC Provincial Income Tax and Departure Year
British Columbia has one of Canada's higher top marginal provincial income tax rates. BC rates (2026): 5.6% on first $50,363; 7.7% on $50,364–$100,728; 10.5% on $100,729–$115,648; 12.29% on $115,649–$140,430; 14.7% on $140,431–$190,405; 16.8% on $190,406–$265,545; 20.5% on income above $265,545. Combined federal + BC top rate: 53.5% — one of the highest in Canada. In the departure year: BC provincial tax applies to your income from January 1 to your departure date. The departure year T1 uses a prorated calculation — your income, deductions, and provincial credits are calculated for the BC-resident period only. BC provincial credits: BC Climate Action Tax Credit; BC Renter's Tax Credit; BC Training and Education Savings Grant. These phase out at higher incomes.
BC Speculation and Vacancy Tax for Non-Residents
BC's Speculation and Vacancy Tax (SVT) is an annual provincial tax on residential properties in specified BC regions (Metro Vancouver, Fraser Valley, Capital Regional District, and others). Rates for 2024: 2% of property assessed value for foreign owners and satellite families; 0.5% for Canadian citizens and PR holders who are BC residents; 2% for Canadian citizens and PR holders who are NOT BC residents (non-resident Canadian owners). Impact of departing BC: if you retain a BC residential property after leaving Canada, you become a non-resident Canadian owner — 2% SVT applies annually on the assessed value. Example: $1.5 million Vancouver condo → $30,000 SVT per year. SVT can be devastating for departing BC homeowners who keep their property as a rental or vacation home. The SVT has significant exemptions: renting to a BC resident tenant for at least 6 months of the year can qualify for an exemption — covering the property with a long-term tenant may eliminate SVT. Sell the BC property before or shortly after departure to avoid ongoing SVT exposure.
BC Foreign Buyers Tax (Additional Property Transfer Tax)
BC's Additional Property Transfer Tax (commonly called the Foreign Buyers Tax or ABT) applies to residential property purchases by foreign nationals and foreign-controlled corporations in designated areas (Lower Mainland, Capital Regional District, etc.). Rate: 20% of purchase price on the foreign buyer's share. Impact after departing Canada: if you sell your BC home after becoming a non-resident and a foreign buyer (someone who is not a Canadian citizen or PR) subsequently purchases, the buyer pays the 20% ABT — this is their cost, not yours, but it affects BC property values and market dynamics in affected areas. If you are a Canadian citizen who departed but retain citizenship: you are not a 'foreign buyer' for ABT purposes (ABT targets non-citizens), so purchasing BC property in the future is not subject to ABT for you personally. BC's property transaction rules are complex — the Underused Housing Tax (federal) also applies to non-resident property owners (1% on property value annually, with exceptions for rented and certain other uses).
BC Hydro, MSP, and Provincial Services on Departure
Administrative steps for BC residents departing Canada: (1) BC Medical Services Plan (MSP): BC eliminated monthly MSP premiums in 2020; however, MSP coverage terminates when you cease BC residency. Notify Health Insurance BC of your departure and return your CareCard (BC health card). There is no premium refund to claim. (2) BC's driver's licence: return or let expire; notify ICBC of your departure if you have an outstanding claim. (3) BC Hydro and FortisBC: close accounts. (4) Property tax: BC property tax is assessed as of January 1; even if you depart mid-year, you owe property tax for the full year. The Homeowner Grant (reduces property tax for owner-occupied principal residences) cannot be claimed after departure — ensure you claimed it before leaving. (5) BCGEU benefits and pension (if applicable): notify BC government pension authorities; deferred pension vesting rules apply.
Non-Resident Rental: CRA Section 216 for BC Landlords
BC has significant rental property ownership, and many departing BC residents retain investment properties. Non-resident Canadian rental income rules: (1) Your tenant is technically required to withhold 25% of gross rent and remit to CRA; in practice, you (or your property manager) should register with CRA as a non-resident landlord and file Section 216 election. (2) Section 216 election: file T1159 annually with CRA; pay tax on net rental income at graduated Canadian federal rates + BC provincial tax (on your BC-sourced income for the non-resident period); this is almost always better than 25% gross withholding. (3) BC SVT: if the property is a vacant or underutilized residential property, the 2% SVT applies (see above). Solution: ensure the BC rental property has a qualifying long-term tenant to satisfy the SVT rental exemption. (4) Sale of BC property as non-resident: 25% withholding on the gross sale price (Section 116); recover via CRA non-resident disposition return; pay capital gains tax at graduated rates.