Do I pay extra school tax on a BC home worth over $3 million?

What the answer means

Every BC property pays the general school tax on its tax notice. On top of it, the most valuable homes pay the additional school tax, on the part of their value over $3 million only.

What it taxes

The owner of dwelling property pays it each year on the part of the property's net taxable value over $3 million: 0.2% of the value between $3 million and $4 million and 0.4% of the value over $4 million, unless lower rates or higher thresholds are prescribed by May 4 of the year (School Act s. 120.1 (3) to (7)). BC Assessment determines the value under the Assessment Act (s. 120.2).

From 2027

The Province's additional school tax page says that, effective January 1, 2027, the rates rise to 0.3% between $3 million and $4 million and 0.6% over $4 million (read 2026-10-22). The School Act on BC Laws, current to October 13, 2026, still reads 0.2% and 0.4%; confirm the rate for the year you'll own.

What counts as a dwelling

Dwelling property is residential (class 1) property: a house or other building for up to 3 families on its land, a residential strata lot, a residence on land that isn't class 1, and vacant land outside the agricultural land reserve with no present use (s. 117.1 (1)). The Province's page adds that it doesn't apply to a non-strata rental building of 4 or more homes, and that on a mixed-use property only the residential part counts.

On ALR land

Vacant land in the agricultural land reserve isn't dwelling property (s. 117.1 (1)). A home on ALR land can be, and the Province's exemptions page says the tax may apply where the residential part is still valued over $3 million after the ALR exemption. Farm (class 9) land isn't class 1, so the farmland itself isn't taxed this way (our reading).

A worked example

A home assessed at $3.5 million pays 0.2% of $500,000, $1,000 a year, at the Act's rate, or $1,500 at the 2027 rate. One assessed at $5 million pays 0.2% of $1 million plus 0.4% of $1 million, $6,000, or $9,000 at the 2027 rates. The first $3 million is never taxed this way.

How it's billed

It is on the annual property tax notice beside the general school tax, paid to the municipality, or to the Province's Surveyor of Taxes in a rural area, by the same due date. If you think it shouldn't apply to your property, the Province's page says to contact BC Assessment.

What it means for a buyer

BC Assessment's value, not the price you pay, decides the tax, and it changes every year (see your assessed value). A home assessed just under $3 million can cross the threshold in a rising year (our reading). The speculation and vacancy tax and the home owner grant are separate (see their pages); the grant is cut back on homes above its own threshold.

Our summary of the School Act (RSBC 1996, c. 412, ss. 117.1, 120.1, 120.2) on BC Laws and the Province's school tax, additional school tax rate and school tax exemptions pages, read 2026-10-22. The rates and thresholds can be changed by regulation each year; BC Assessment decides whether the tax applies to a property.

Sources (read 2026-10-22; summarised in our own words unless noted): School Act, RSBC 1996, c. 412, Part 6, Division 4 (ss. 117.1, 120.1, 120.2); Additional school tax rate, Province of British Columbia; School tax, Province of British Columbia; School tax exemptions and credits, Province of British Columbia.

Before you buy: who to ask

BC Assessment

What is this property's assessed value, and does the additional school tax apply to it?

The seller

May I see last year's property tax notice?

The municipality, or the Surveyor of Taxes in a rural area

What will this year's notice charge for school tax?

See also property tax rates, your assessed value, the home owner grant, property tax deferment and the speculation and vacancy tax.