The property transfer tax is a one-time provincial government tax that applies to all types of real estate. The amount of the property transfer tax is 1% on the first $200K of the property's fair market value, 2% on the remaining value, and 3% of any value over $2M. So if the fair market value of a property is $500,000, the 1% of the first $200K would be $2,000 and the 2% on the remaining $300K would be $6,000. The total PTT would be $8,000.

Property transfer tax should not be confused with property tax, the tax paid annually to the local municipality. You can read more information here:

gov.bc.ca/…/property-taxes/property-transfer-tax

Please remember the Property Transfer Tax Act may change, along with exemptions. While I try to keep the info on this page up-to-date, don’t make any decisions without talking to your lawyer.

The Most Common Property Transfer Tax Exemption: First Time Home Buyers’ Program

The most common exemption is through the first time home buyers’ program, which exempts you from paying taxes on the first $500K of the price. To qualify for the property transfer tax exemption as a first-time home buyer:

• The purchaser must never have owned an interest in a principal residence.

• The fair market value must not exceed $835K.

• Other criteria, such as residency status in Canada and living in the purchased property for 1 year.

You can find all the first time home buyers’ program’s criteria and other information about it here:

gov.bc.ca/…/exemptions/first-time-home-buyers

The Newly Built Home Exemption

Another common exemption is the newly built home exemption, which applies to properties with a value of $1.1M or less. You do not need to be a first-time home buyer to receive this exemption. You can read more information about here:

gov.bc.ca/…/exemptions/newly-built-home-exemption

Newly Built GST Rebate

This is unrelated to the Property Transfer Tax, but it is important to know about the taxes applied to your home purchase. The CRA provides a GST rebate for newly built properties with a value under $450K.

canada.ca/en/revenue-agency/…/gst-hst-new-housing-rebate.html

Income Tax Credit

Also unrelated to the PTT, first-time buyers can receive a credit on their income tax filing.

canada.ca/en/revenue-agency/…/deductions-credits-expenses/line-31270-home-buyers-amount.html