Property Transfer Tax for BC Real Estate

In BC, home buyers are responsible for paying the provincial Property Transfer Tax (PTT) when purchasing a property.

RATE:

The general PTT calculation for most residential properties is based on a percentage of the fair market value of the property, with a rate of

• 1% on the first $200,000,

• 2% on the balance up to and including $2,000,000, and

• 3% on the balance greater than $2,000,000.

• 5% on the balance of the fair market value that exceeds $3,000,000.

Foreign buyers are subject to an additional 20% property transfer tax on their proportionate share of the purchased property, on top of the regular PTT.

To qualify for exemptions, such as the first time home buyer PTT exemption or the newly built home PTT exemption, there are certain eligibility requirements that must be met.

EXEMPTIONS:

You can avoid paying BC property transfer tax by qualifying for an exemption.

The most notable exemptions are the first time home buyer PTT exemption and the newly built home PTT exemption.

• To qualify for the first time home buyer exemption, you must be a Canadian citizen or permanent resident who has never owned a principal residence before and meets certain residency and property requirements.

• If your property meets the exemption requirements, you can receive a full refund of the property transfer tax.

• If your property does not meet all the requirements but is still eligible for an exemption, you may qualify for a partial refund of the property transfer tax.

• There is a PTT exemption for newly built homes with a fair market value of up to $750,000, including various types of newly built homes (Used for principal residence).

• There is a partial exemption for properties with a fair market value of $750,000-$800,000.

• If you paid property transfer tax on a vacant lot and have built a new home on the land worth $750,000 or less and moved into it as a principal residence within a year of registering the property, you may be eligible for a refund if you meet the qualifications for the Newly Built Home Exemption.