Are You Flipping Kidding Me? Why BC’s 20% Flipping Tax Needs a Second Look

Are You Flipping Kidding Me? Why BC’s 20% Flipping Tax Needs a Second Look

Are you flipping kidding me, in this economy?

I’m Matthew Rufh, a Langley realtor, and there’s one topic I haven’t heard a single person on the campaign trail mention: BC’s 20% flipping tax. I think it deserves a second look.

First, what I’m not saying

I’m not saying flippers shouldn’t pay capital gains tax. They absolutely should. It’s the 20% flipping tax on top of that which I think should be eliminated. Period.

What the tax does

Since January 1, 2025, BC charges a 20% tax on the profit when a home is sold within 365 days of purchase. The rate phases down to zero at 730 days. The goal was to discourage people from buying homes and reselling them quickly for a profit. But it also took away an entire business model: buy a tired home, renovate it, and sell it.

What I see in the field

I work with buyers and sellers every day, and I’ll be honest: a lot of the homes on the market aren’t very good. The product isn’t where buyers’ expectations are. When flippers were active, they turned dated homes into modern, move-in-ready ones. They also helped clean up neighbourhoods. Dilapidated homes were bought, renovated and resold, and that lifted the whole street.

Why buyers can’t just do the work themselves

Prices have come down, but they’re still high. Then add another $100,000 to $150,000 for renovations, by my estimate. You can’t renovate before you own the home, and once you own it you want to move in, so you’re living through six to eight weeks of work. That isn’t feasible for a lot of people. And plenty of buyers simply don’t want a project. They want simple.

The bigger picture: jobs and the local economy

Flippers hire electricians, HVAC technicians, painters, plumbers and landscapers. Those workers spend their paycheques at local coffee shops, restaurants and small businesses. That matters, especially now, when we all say we want to buy local. More sales also means more property transfer tax revenue for the province. Fraser Valley sales in 2025 were the slowest since 2000, so there is a lot of room to improve.

What I’d change

I’d remove the 20% flipping tax and keep the taxes flippers already pay. I encourage everyone advocating on the campaign trail to look at this. A tax meant to cool flipping is also putting a ceiling on local jobs, home quality and growth.

I’d love to hear what you think. Reply to this email or call me at 604-210-6540.
Matthew Rufh | Rufh Real Estate Group | Real Broker B.C. Ltd.

Sources: Lipman Karas Law (BC flipping tax summary); Fraser Valley Real Estate Board 2025 year-end report.