Property Transfer Tax & Exemptions

In British Columbia, Property Transfer Tax (PTT) is charged by the Government on all real estate transactions. When you purchase a property, you are responsible for paying Property Transfer Tax. This tax is typically paid at the completion stage of your purchase and takes place at the notaries office. Property Transfer Tax is based on the purchase price of the property and is calculated as follows:

• 1% of the first $200,000
• 2% of the remaining amount up to and including $2,000,000
• 3% on the portion greater than $2,000,000 – $3,000,000
• A further 2% on the portion greater than $3,000,000 (property must be residential)
• If the property is classified as residential and farm or is residential mixed class (residential and commercial), you pay the further 2% tax on only the residential portion of the property

FIRST TIME HOME BUYERS – PROPERTY TRANSFER TAX EXEMPTIONS
As a first-time home buyer, you may be eligible for full exemption or partial exemption of Property Transfer Tax.
Full Exemption (pay no PTT) – purchase price $500,000 or less
No Exemption (pay full PTT) – purchase price $525,000 or greater
Partial Exemption (pay a portion of PTT) – purchase price greater than $500,000 but less than $525,000.
Partial exemption is applied according to the sliding scale shown below:

Exemption Qualifications:
• A Canadian citizen or permanent resident
• First-time home buyer: never owned a property anywhere in the world at any time and have never received a first-time home buyers exemption
• Lived 1 full year prior to the date property is registered OR have filed 2 income tax returns as a BC resident in the last 6 years
• Fair market value of $500,000 or less
• Property of interest must be used as principal residence
• Property must be 1.24 acres or smaller
*If a you’re a first-time home buyer and purchase a home with someone who does not qualify for the exemption, you will only receive partial exemption based on the portion you own

NEWLY BUILT HOMES – PROPERTY TRANSFER TAX EXEMPTIONS
If you purchase a newly built home, you may be eligible for exemption of Property Transfer Tax. This exemption applies to all home buyers, whether you’re a first-time or repeat and includes newly built houses, condos and townhomes.
Full exemption (pay no PTT) – purchase price $750,000 or less
No Exemption (pay full PTT) – purchase price $800,000 or greater
Partial Exemption (pay a portion of PTT) – purchase price greater than $750,000 but less than $800,000
Partial exemption is applied according to the sliding scale shown below:

Exemption Qualifications:

• A Canadian citizen or permanent resident
• Newly built home must be used as principal residence
• Must be 1.24 acres or smaller
• Fair market value of $750,000 or less
If you purchased vacant land and paid property transfer tax and then added a newly built home on the same piece of vacant land, you may be eligible for a refund.