BC Property Transfer Tax - Marie O'Connor Real Estate Vancouver

Property Transfer Tax:

In BC, whenever you purchase or gain an interest in property that is registered at the Land Title Office, you're responsible for paying property transfer tax. You pay this tax at the time the property is registered. The tax is calculated based on the fair market value of the property, or in other words, the price that a buyer would be willing to pay to acquire the property on the "open market".

As of February 21, 2018, the Property Transfer Tax on residential properties above $3 million was raised from 3% to 5%. It remains at 1% for the first $200,000, 2% of everything else up to the $2,000,000 mark and 3% for the amount between $2 million and $3million.

There are several situations where you might be exempt from paying tax. See below:

Exemptions:

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FIRST TIME HOME BUYER

If you are buying your first home and plan to live in it as your principle residence, you may be exempt from paying PTT on homes purchased for $835,000 or less with partial exemptions up to $860,000 in value.

PUROPSE BUILT RENTAL

if you’re purchasing a new qualifying purpose-built rental building, you may qualify for an exemption from the further 2% PTT on the amount of the property value that exceeds $3,000,000.

NEWLY BUILT HOME

If the home you are purchasing is newly built, no more than 0.5 hectares and less than $1,100,000, you may qualify for a full PTT exemption if it's your principle residence. Partial exemptions apply up to
$1,150,000.

FAMILY EXEMPTIONS

There are a number of ways in which family exemptions can apply: transfer of residence, marital breakdown and transfer of family farms among them.

Property Transfer Tax Calculator:

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Other Taxes:

The Property Transfer Tax should not be confused with GST or the Foreign Buyers Tax, which may also apply to your purchase. Nor should it be mistaken for annual property taxes.

To read more about other taxes that may apply to real estate transactions, go here.