When you purchase or gain an interest in property in British Columbia, you are responsible for paying property transfer tax (PPT). This tax is charged based on the fair market value of the property at the time the sale is registered with the Land Titles Office.
How much is the tax?
The Property Transfer Tax is charged as follows:
- 1% on the amount under $2K
- 2% on the amount over $2K but under $2M
- 3% on the amount over $2M but under $3M
- 5% on the amount over $5M
For example, if you are looking to purchase a property priced at $800,000 you would pay $14,000 in PPT. If the property is priced at $4 Million, you would pay $118,000 in PPT.
Wondering how much you would need to pay? Here is a link to a PPT calculator.
What are the exceptions?
There are two exceptions where the Property Transfer Tax is not applicable:
- The First Time Home Buyers’ Program gives a PTT exemption to eligible first time home buyers if the property will be used as their principle residence and have a fair market value less than $500,000.
- The Newly Built Home Exemption applies to buyers of new homes with a fair market value of less than $750,000 (with a partial exemption for newly built homes up to $800,000). Homes include a house constructed on vacant land, an apartment in a newly built condominium building, a manufactured home on vacant land, or other newly built homes.
Need more information?
Contact me anytime to discuss or review the Real Estate Board of Greater Vancouver PPT Fact Sheet here.