BC PROPERTY TRANSFER TAX INFORMATION or PTT In the Province of British Columbia, Buyers pay Property Transfer Tax on property they purchase or gain an interest in that is registered at the Land Title Office. This tax is based on the fair market value of the property on the date it is registered at the Land Title Office, unless you qualify for an exemption.
The Property Transfer Tax rate 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
- An additional 3% of the fair market value that is greater than $2,000,000 up to $2,999,999.
- An additional 2% will be applied to the fair market value on any portion of the property value over $3,000,000.
To qualify you must be a Canadian Citizen or a Permanent Resident. You must have lived in BC for the past 12 months and must have filed at least 2 income tax returns as a BC Resident in the past 6 years. You must not have previously owned property anywhere in the world or previously received a First Time Home Buyer exemption or refund. You must use the property as your principal residence for at least one year or you could be subject to paying the PTT after the purchase process is complete.
The two most common PTT exemptions that may apply to you are:
First Time Buyers Exemptions apply to purchases with a fair market value of $835,000 or less if the property’s lot size is 1.24 acres (.5 hectares) or smaller. In this situation, the Buyer will be exempt from paying the PTT on the first $500,000 of the purchase price. If the property has a fair market value of over $835,000 but less than $860,000, you may qualify for a partial exemption.
Currently there is an exemption if you purchase a Newly Constructed Home or a To Be Constructed Home for $1,100,000 or less. You may qualify for a partial exemption if the fair market value of the property is between $1,100,000 and $1,150,000.
