Property Transfer Tax

Property Transfer Tax

When buying a home in BC, the buyer automatically pays the provincial Property Transfer Tax (PTT).

The tax is payable on the fair market value of the home or other property.

This is different from the property tax. You pay property tax on an annual basis for services you receive from your local government.

How much is it?

The tax is charged at a rate of 1% on the first $200,000 of the fair market value of the property, and 2% on the rest.

For example, if the fair market value of the property is $150,000, the tax is 1% of $150,000 or $1,500.

If the property’s fair market value is $250,000,  the tax is 1% of $200,000 ($2,000) plus 2% of the remaining $50,000 ($1,000) for a total tax of $3,000.

Exemption

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% of the remainder of the purchase price of a home priced up to $475,000. There is a proportional exemption for homes priced up to $500,000.

You qualify as a first time home buyer if:

  •  you are a Canadian citizen, or a permanent resident as defined by the Immigration and Refugee Protection Act (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 British Columbia 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 at any time (a principal residence is the usual place where an individual lives), and
  • you have never received a first time home buyers’ exemption or refund.

For more information, please click here.

Help

To help home buyers understand the tax and how to calculate your payment, the Ministry of Finance now provides plain language documents on all aspects of the PTT, from explaining what the tax is to calculating an exemption and filing a PTT return.

For more information, please click here.

First Time Home Buyers’ Exemption Amounts

Below is the amount of tax payable if 100% of the property transfer is eligible for the First Time Home Buyer’s Exemption.

Fair Market Value Exemption Amount Tax Payable
Less than $475,000.00 Full amount of tax normally due $0
$475,000.00 $7,500.00 $0.00
$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 $8,000.00
Source: Real Estate Board of Greater Vancouver.
Advertisements