In British Columbia, Property Transfer Tax (PTT) is paid when you purchase or acquire an interest in a property. The tax must be paid when changes are registered at the Land Title Office. Note that PTT differs from property tax, which is paid annually to your municipality for services such as fire fighting and community centres.
PTT is calculated as:
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000 and up to and including $3,000,000, and
- 5% on the portion of the fair market value above $3,000,000
First Time Home Buyers Exemption
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
Newly Built Home Exemption
The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.
To qualify, the property must be newly built.
The buyer must be:
- an individual
- a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) and your birthdate)
- move into the property within 92 days after registration
- reside in the property for at least 1 year
and the property must:
- be located in B.C.
- only be used as your principal residence
- have a fair market value of $1,100,000 or less
- be 0.5 hectares (1.24 acres) or smaller
You may qualify for a partial exemption, if the property:
- has a fair market value greater than $1,100,000 and less than $1,150,000