What is the Property Transfer Tax?
Property Transfer Tax (“PTT”) is a BC provincial tax that needs to be paid whenever you purchase or gain an interest in a BC property, unless an exemption applies. For more information, please see: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax
Why does this matter to you?
Since you may have to pay Property Transfer Tax for your next purchase, it is important to know what the costs are so there are no surprises, especially since legislation has recently changed in 2018 with how much is to be paid.
How is PTT calculated?
The PTT is calculated differently depending on your situation. Have a look at the different ways PTT can be calculated to see where you would fit in.
General PTT Calculation
Tax Rate | Fair Market Value (FMV) |
---|---|
1% | $0 to 200,000.00 |
2% | Greater than $200,000.00 to $2,000,000.00 (on the portion of the fair market value greater than $200,000 and up to and including $2,000,000) |
3% | Greater than $2,000,000 for property NOT classified as residential or residential and farm. |
5% | Greater than $2,000,000 for property classified as residential; or residential and farm (only on the residential portion) |
First-time Home Buyer PTT Exemptions
Exemption Amount | Qualification |
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Full Exemption | Purchaser Requirement:
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Partial Exemption | Purchaser Requirement (same as above) Property Requirements:
|
Requirements During the First Year of Ownership | |
Occupancy Requirement |
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Newly Built Home Exemptions
Exemption Amount | Qualification |
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Full Exemption | Purchaser Requirement:
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Property Requirements:
|
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Partial Exemption | Purchaser Requirement (same as above) Property Requirements:
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Additional (Foreign Buyer) PTT
If you are considered a foreign national, foreign corporation or taxable trustee and purchased or obtained interest in a property located within specified areas of BC, then you must pay an additional 20% of the fair market value of the property of your proportionate share of a residential property.
Tax Rate | Details |
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Additional 20% | Purchaser Requirement:
Property Requirement
|
Exempt from additional 20% - BC Provincial Nominee | Purchaser Requirement
Property Requirements:
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Exempt from additional 20% - General Exemption | Purchaser Requirement (same as above) Property Requirement (same as above) Exemption Requirement
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Additional 20% - payable despite fit within General Exemption | Purchaser Requirement (same as above) Property Requirement (same as above) Special Circumstance - NO EXEMPTIONS AVAILABLE
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Please refer to the BC government website for the most up-to-date information with regards to the Property Transfer Tax.
If you have any questions or would like us to handle your property purchase transaction, please call 604-559-2529 or Send Us A Message.
Try our Free Property Transfer Tax calculator!
Our free online PTT calculator automatically tells you what you would owe by simply entering some basic information about your purchase. Go ahead and try out the PTT calculator by entering the values requested. The PTT will be automatically calculated.
Just be aware that certain conditions or situations may not give 100% accurate results, such as if you are a foreign buyer and a first-time homebuyer. If that sounds like you, get in touch with us and we’d be happy to learn more about your situation and see how we can help.
This PTT calculator is for your guidance only and should not be used to confirm final amounts, as further information may still be required. Please check over with our office for a confirmed calculation for the final amount.
Should you have any questions or would like us to handle your property purchase transaction, please call 604-559-2529 or Send Us A Message.
Property Transfer Tax Calculator
First-Time Homebuyer?
Check out our video about whether you need to hire a lawyer to purchase real estate