Who Pays the Property Transfer Tax?

• The buyer pays the Property Transfer Tax on the closing date.

Exemptions from Property Transfer Tax

1. Full Exemption:

   • Must be a Canadian citizen or permanent resident.
   • Reside in B.C. for at least six years.
   • Filed two years of income tax as a B.C. resident.
   • Must never have owned a principal residence anywhere globally.
   • Must not have received a first-time home buyer exemption or refund.
   • Property must be used as a residence.
   • Fair market value must be $835,000 or less.
   • Property size must be 1.24 acres or smaller.
   • Must contain only residential improvements.

2. Partial Exemption:

   • Fair market value between $835,000 and $860,000.
   • Buyer must move in within 92 days of registration and remain for at least one year.

3. Newly Built Exemption:

   • Increased threshold: Fair market value up to $1,100,000 for full exemption and up to $1,150,000 for partial exemption.
   • Applies to newly built homes that have never been occupied.

4. Court Order Sales:

   • Sales mandated by a court may have specific exemptions regarding PTT.

Gifting Property

• Gifting your principal residence may be exempt from capital gains tax, but there are no gift taxes in Canada. Consider possible estate tax implications.

Foreign Buyers

• Foreigners or non-permanent residents face an additional 20% tax on top of the standard Property Transfer Tax when purchasing residential property in designated regions of B.C.

B.C. Property Transfer Tax Rates: 

Purchase Price of Home Property Transfer Tax 

First $200,000.00                                1.0%

$200,000.00 to $2,000,000.00           2.0%

$2,000,000.00 to $3,000,000.00        3.0%

Over $3,000,000.00                             5.0%

For commercial properties would be 3.0%  for over $3,000,000.00