BC Property Transfer Tax Explained
In British Columbia we are subject to property transfer tax (PTT) when buying a home. We will cover
what PTT is, how much is it, who pays it and who is eligible for the exemption.
What is PTT
Property transfer tax is paid by a buyer, they buy a home in BC and is paid on completion of sale (i.e. a
PTT is a one time cost, unlike your property taxes that are paid yearly to your municipal tax office.
How much is PTT?
PTT is based on the fair market value of the property on the day it was registered with the Land Title
Office. The general PTT is:
- 1% of the fair market value up to and including $200,000.
- 2% of the fair market value greater than $200,000 and up to and including $2,000,000.
- 3% of the fair market value greater than $2,000,000.
Have a home in mind you are looking to buy and wondering what the exact PPT is?
Use the following calculator to determine the PTT based on the purchase price.
Who Pays the PTT?
The buyer of the home is responsible for the PTT.
Am I Exempt from Paying PTT?
There are two exemptions to the PTT:
- First Time Home Buyer Property Transfer Tax Exemption.
- Newly Built Home PTT Exemption.
Both of those exemptions are pretty self-explanatory, but have some caveats. If you are qualifying for
the Firs Time Buyer exemption the fair market value of the home must be less than $500,000 and serve
as your principal residence. For the Newly Built Home exemption, the home must have a fair market
value less than $750,000.
For more information on exemptions, see the following government link on the subject.