First Time Home Buyers may qualify for exemption if:
- you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada.
- you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a BC resident during the 6 years before the date you register the property,
- you have never owned an interest in a principal residence anywhere in the world ever.
- you have never received a first time home buyers’ exemption or refund.
- the land is 0.5 hectares (1.24 acres) or smaller.
- the property will be used as principal residence.
If the fair market value, excluding tax, is less than $500,000, a full exemption applies.
If the fair market value is between $500,000 and $835,000 an exemption of $8,000 applies.
If the fair market value is between $835,000 and $860,000 a sliding scale exemption applies.
If the fair market value is over $860,000 there is no exemption
Example of partial exemption, assume purchase price is $845,000
PTT = $200,000 x 1% + ($845,000 – $200,000) x 2% = $14,900
PTT Exemption = ($860,000 – $845,000) / ($860,000 – $835,000) = 60%
Purchaser pays = $14,900 – (8,000 x 60%) = $10,100