Mortgage Blog

Property Transfer Tax – British Columbia

March 22, 2017 | Posted by: Laurie Anne Faulkner

Property Transfer Tax

You pay Property Transfer Tax when you purchase or acquire an interest in a property. The tax must be paid when you register changes to a certificate of title with the Land Title Office. For example, a change may include adding or deleting a name from the title.

Property Transfer Tax is different from property tax. You pay property tax on an annual basis for services you receive from your local government, even if no money changes hands and if the property is owner occupied you may qualify for a yearly Home Owners Grant(HOG).

Property Transfer Tax Rates

Tax Rates

The property transfer tax rate is:

* 1% on the first $200,000,

* 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,

* 3% on the portion of the fair market value greater than $2,000,000, and

* If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).

First Time Home Buyers’ Property Tax Exemption Program

The First Time Home Buyers’ Program is designed to help British Columbians purchase their first home.

Under the program, eligible purchasers can claim an exemption from Property Transfer Tax if the fair market value of the home is less than the threshold amount.

Thresholds:

For registrations on, or after, February 20, 2014, the fair market value threshold for eligible residential property is $500,000.
A proportional exemption is provided for eligible residences with a fair market value of up to $25,000 above the threshold (i.e. up to $525,000).

1st Time Buyers PP Tax Exemption

For More Information about Property Transfer tax please go to these BC Government websites:

Property Transfer Tax

FAQ Property Transfer Tax

View More 'Educate Me' Information

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