BC Property Transfer Tax

BC Property Transfer Tax (PTT) is a provincial tax imposed when there is a change of ownership of real estate property in British Columbia. The tax is calculated based on the property’s fair market value at the time of the transfer and is a significant part of property transactions in the province.

BC Property Transfer Tax was introduced in 1987 when the average price of a greater Vancouver home was approximately $148,000.00. Under this tax regime, buyers had to pay 1% on the first $200,000 of the property’s fair market value at the registration date, and 2% on the remainder, unless qualifying for specific exemptions. At that time, a home over $200,000 was considered ‘luxury’… hence the higher tax rate.

In response to escalating property values, the BC Property Transfer Tax rates should have drop in our opinion… however, the opposite is the case now.

The general 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
• 3% of the fair market value greater than $2,000,000
• Further 2% on residential property over $3,000,000  –  If the property has residential property worth over $3,000,000, a further 2% tax will be applied to the residential property value greater than $3,000,000. If the property is mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property.

Additional property transfer tax

If you’re a foreign national, foreign corporation or taxable trustee, you must also pay the additional property transfer tax on the fair market value of the residential portion of the property if the property is within these areas of BC:

• Capital Regional District
• Fraser Valley Regional District
• Metro Vancouver Regional District
• Regional District of Central Okanagan
• Regional District of Nanaimo

The tax rate is 20% on the fair market value.

See  more information on how the tax applies, for additional property transfer tax in the specified areas of B.C.

Use this PTT Calculator to estimate the BC Property Transfer Tax for a specific property.

BC Property Transfer Tax exemptions

When acquiring or gaining an interest in a property, various programs and types of transfers may qualify you for a reduction in the amount of tax owed. Explore below to learn more about the available programs and the qualifying exemptions.

• First time home buyers’ program – When you’re purchasing your first home, you may qualify to reduce or eliminate the amount of property transfer tax you pay, if the fair market value of the property is $500,000 or less. A partial exemption may be available for homes at a fair market value up to $525,000.00 if you purchase the home before April 1, 2024, or up to $835,000 if you purchase the home after April 1, 2024.
• Purpose-built rental exemption – Effective January 1, 2024, if you’re purchasing a new qualifying purpose-built rental building, you may qualify for an exemption from the further 2% property transfer tax on the amount of the residential property value that exceeds $3,000,000.
• According to BC Budget 2024 – Purpose-built rental properties built between January 1, 2025 and December 31, 2030 with four or more units will now be exempt from PTT.
• Newly built home exemption – The newly built home exemption reduces or eliminates the property transfer tax on qualifying purchases of a principal residence.
  • Full exemption: Effective April 1, 2024, the fair market value threshold for a full exemption for newly built homes is increased from $750,000 to $1,100,000.
  • Partial exemption: A partial exemption is also available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers.
• Family exemptions
  • Transfer of a principal residence
  • Transfer of a recreational residence
  • Transfer resulting from a marriage breakdown
  • Transfer of a family farm involving individuals
  • Transfer of a family farm to or from a family farm corporation
• Other exemptions

Find the complete list of exemptions and the qualifying details.

Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.