Property Transfer Tax Reduced 2014

First-time home buyers received a break on Property Transfer Tax

The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

How is PTT calculated:

  • PTT is calculated at a rate of 1% on the first $200,000 and 2% on the balance of the purchase price.

How Do I Qualify:

  • To qualify for a full exemption, at the time the property is registered you must:
  • be a Canadian citizen or permanent resident have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
  • have never owned an interest in a principal residence anywhere in the world at any time you have never received a first time home buyers’ exemption or refund
  • The property must: be located in B.C. only be used as your principal residence have a fair market value of:
    • $425,000 or less if registered on or before February 18, 2014, or
    • $475,000 or less if registered on or after February 19, 2014
  • be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

  • has a fair market value less than:
    • $450,000 if registered on or before February 18, 2014, or
    • $500,000 if registered on or after February 19, 2014
  • is larger than 0.5 hectares has another building on the property other than the principal residence

100 % Transfer and 100%   FTHB Eligible

Purchase Price

 Exemption Amount

Tax Amount Payable

$475,000.00

 $7,500.00

0

$476,000.00

 $7,219.20 $300.80
$477,000.00 $6,936.80

$603.20

$478,000.00

 $6,652.80 $907.20
$479,000.00 $6,367.20

$1,212.80

$480,000.00

 $6,080.00 $1,520.00
$481,000.00 $5,791.20

$1,828.80

$482,000.00

 $5,500.00

$2,140.00

$483,000.00

 $5,208.80

$2,451.20

$484,000.00

 $4,915.20

$2,764.80

$485,000.00

 $4,620.00

$3,080.00

$486,000.00

 $4,323.20 $3,396.80

$487,000.00

 $4,024.80

$3,715.20

$488,000.00

 $3,724.80

$4,035.20

$489,000.00

 $3,423.20

$4,356.80

$490,000.00

 $3,120.00

$4,680.00

$491,000.00

 $2,815.20

$5,004.80

$492,000.00

 $2,508.80

$5,331.20
$493,000.00 $2,200.80

$5,659.20

$494,000.00

 $1,891.20 $5,988.80
$495,000.00 $1,580.00

$6,320.00

$496,000.00

 $1,267.20

$6,652.80

$497,000.00

 $952.80

$6,987.20

$498,000.00

 $636.80

$7,323.20

$499,000.00

 $319.20

$7,660.80
$500,000.00 $0.00

$8,000.00

Read the full details at ( http://www2.gov.bc.ca/gov/topic.page?id=BBD16E2D7C1841A7BBD420E3AC5380F1)