Property Transfer Tax BC 2024
PTT Exemptions & Tax
Written By: Mariko Baerg, REALTOR of Bridgewell Real Estate Group
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How to Calculate Property Transfer Tax
BC Property Transfer Tax Rate
Home buyers in BC pay a provincial Property Transfer Tax (PTT) when they buy a home. In BC, the Buyer is responsible for paying property transfer tax for a property upon completion.
If you are a Canadian citizen or permanent resident then you would calculate property transfer tax based on the general PTT calculation and rates.
For most residential properties, the general property transfer tax calculation is as follows:
- 1% on the first $200,000
- 2% on the balance up to and including $2,000,000
- 3% on the balance greater than $2,000,000
- If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000
The amount of property transfer tax you pay is based on the fair market value of the property, and in most cases fair market value is the agreed upon purchase price between the seller and the buyer. In some cases where there is no monetary exchange, such as an inheritance, the fair market value is usually based on a third party appraisal or possibly BC property assessment.
Additional Property Transfer Tax: Foreign Buyer Tax
If you are considered a foreign buyer/entity, then you are subject to an additional property transfer tax that is also referred to as the foreign buyer tax.
Foreign buyers have to pay both the regular PTT and an ADDITIONAL property transfer tax that is an extra 20% of the fair market value of your proportionate share of the purchased property.
*UPDATE: As of February 4, 2024, the foreign buyer ban in effect has been extended for another TWO year period to January 1, 2027.
Property Transfer Tax BC Exemption
If you’re wondering about how to avoid BC property transfer tax, the only way is via qualifying for an exemption.
The most notable exemptions are the first time home buyer PTT exemption, and the newly built home PTT exemption.
First Time Home Buyer Property Transfer Tax Exemption
To help enter in to the market, the first time home buyer’s (FTHB) program gives an exemption to the property transfer tax in the case that you can qualify.
You qualify for a full refund if:
- You are a Canadian citizen or permanent resident;
- You’ve lived in BC for 12 consecutive months before the date the property is registered; or You’ve filed 2 income tax returns as a BC resident in the last 6 years;
- You have never owned an interest in a principal residence anywhere, anytime; and
- You have never received a first time home buyers’ exemption or refund.
- Your property meets the exemption requirements of being used as a principal residence; has a fair market value that does not exceed $835,000*; and the land is equal to or less than 0.5 hectares (1.24 acres)
You may qualify for a partial refund if:
- The property has a fair market value up to $860,000
- The land is greater than 0.5 hectares.
- A portion of the land is used for commercial purposes or there are other homes on your land (only your primary residence is eligible).
*It’s important to note it’s not a FULL exemption up to $835,000. Instead it will work as a partial exemption, for example: a first time home purchaser will only be exempt from property transfer tax on the first $500,000, and have to pay on the remaining amount up to $835,000.
Property Transfer Tax on New Homes Exemption
There’s a PTT exemption for newly built homes with a fair market value of up to $1,100,000, including a house constructed on vacant land, a new apartment in a newly built condominium building, a manufactured home on vacant land, and other newly built homes. There are also occupancy requirements.
There’s a partial exemption for property with fair market value up to $1,150,000.
Vacant Land Property Transfer Tax Refund
If you purchased a vacant lot and were qualified for the Newly Built Home Exemption, but did not apply when you registered the home, you may be eligible for a refund. If you registered a vacant lot and paid the tax, you may apply for a refund if:
- built a new home on the land worth $1,100,000 or less;
- moved into the home and occupied as a principal residence within one year of registering the property; and
- meet the qualifications for the Newly Built Home Exemption.
There are also other, less common exemptions available. For more info information on property transfer tax and what may qualify for an exemption, you can also refer to the government’s guide for Property Transfer Tax Exemptions List in BC
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