BC Property Transfer Tax Calculator

The Complete Property Transfer Tax Calculator for BC First Time Home Buyer (2020)

BC Property Transfer Tax Calculator (2020)

Working as a Vancouver realtor in the last ten years, many of the first time home buyers in BC asked me how much the BC property transfer tax (PTT) is. I have created this property transfer tax calculator to help BC first time home buyers figure out the exact amount of PTT and the property transfer tax exemptions. If you have any questions about the PTT calculator, feel free to contact me.

 

 

Many first time home buyers in Vancouver often overlooked BC Property Transfer Tax (PTT) when considering the total cost of buying a home. In Canada, all the provinces have some sort of property transfer tax except Alberta and Saskatchewan. Both Alberta and Saskatchewan levy a small transfer fee. Property transfer tax BC is often called “Land Transfer Tax” in other provinces. For example, Ontario and Manitoba called it “Land Transfer Tax.”

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About Property Transfer Tax

The Property Transfer Tax (PTT) is a land registration tax paid by the home buyer in BC when a property title is registered at the Land Title and Survey Authority (LTSA). BC Property Transfer Tax Act was first introduced in BC in 1987. In the beginning, it was called the Property Purchase Tax to discourage real estate speculation. Later, the BC government re-named it Property Transfer Tax.

BC Property Transfer Tax Rate

Purchase Price of Home Property Transfer Marginal Tax Fee
First $200,000 1.0%
$200,000 to $2,000,000 2.0%
portion of the fair market value over $2,000,000 3.0%
portion of the fair market value over $3,000,000 2.0%

Property Transfer Tax Exemption

To help home buyers in Vancouver and other cities in BC, the British Columbian provincial government also offers property transfer tax exemptions for qualified home buyers. The exemption can help buyers reduce the amount the transfer tax they need to pay.

Typically, the lawyer or notary public handles the payment of property transfer tax on the completion date. If you have any questions about PTT and exemptions, you can contact your real estate lawyer in Vancouver.

There are many ways home buyers can qualify for the property transfer tax exemption. Below are the exemption programs available to home buyers in BC.

BC First Time Home Buyers’ Exemption

All the first time home buyers in BC can qualify for the First Time Home Buyers’ Exemption. This program reduces or eliminates the BC property transfer tax. If you are qualified for the program, you may be eligible for either a full or partial exemption from the transfer tax.

If one or more buyers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible. For example, if you are buying a property with a partner, and the property has a fair market value of $500,000, if one of you is qualified, and the other is not. If one of them owns a 50% interest in the property, 50% of the tax amount would be eligible for the exemption.

How to qualify for the Property Transfer Tax First Time Home Buyer BC exemption program?

  • Canadian citizen or Permanent Resident
  • Lived in BC for 12 consecutive months before the property registered. Alternatively, filed at least two income tax returns as a BC resident in the last years
  • Never owned an interest in a principal residence anywhere in the world at any time
  • Never received a first time home buyers’ exemption or refund
  • The property must be located in British Columbia
  • The property must be used as the buyer’s principal residence
  • The property has a fair market value of $500,000 or less. There’s a partial rebate for property between $500,000 to $525,000. No rebate for a property over $525,000
  • The property must be 0.5 hectares (1.24 acres) or smaller

Please note that Foreign Buyers are not eligible for the First Time Home Buyers’ Program exemption. Click here to learn more if you are a foreign buyer planning to buy a home in Vancouver.

BC Property Transfer Tax First Time Home Buyer Rebates

Purchase Price of Home First-Time Buyer Rebate
Up to $499,999 Full Tax Refund
From 500,000 to 524,999 Partial Rebate, See Calculator
Over $525,000 No First Time Buyer Rebate

Newly Built Homes Exemption

The Newly Built Home Exemption program reduces or eliminates the property transfer tax when buying a new or newly built home.

What is the definition of a Newly Built home?

  • a house constructed and affixed on a parcel of vacant land
  • a new apartment in a newly built condo building

How to qualify for the Property Transfer Tax BC new construction exemption?

  • Buyer must be an individual
  • Canadian citizen or permanent resident
  • The property must be in BC
  • Only be used as Buyer’s principal residence
  • Have a fair market value of $750,000 or less

There’s a partial exemption for the property with a fair market value between $750,000 and $800,000.

BC Property Transfer New Construction Buyer Rebates

Purchase Price of Home New Home Buyer Rebate
Up to $749,999 Full Tax Refund
From 750,000 to 799,999 Partial Rebate, See Calculator
Over $800,000 No New Home Buyer Rebate

Foreign Buyers Exemption

Foreign buyers are not eligible for the First Time Home Buyer and Newly Built Home property transfer tax exemption. However, if the foreign buyer becomes a Canadian citizen or permanent resident within 12 months after the property is registered, the buyer may apply for a refund of the property transfer Tax.

Family Exemptions

There are numerous property transfer tax exemptions for family members. See below for details of the Family member 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

In addition to First Time Home Buyer and New Home exemption programs, other exemption programs are available to help reduce or eliminate property transfer tax.

  • Transfer to correct a conveyancing error
  • Transfer to a registered charity
  • Registration of an agreement for sale
  • Transfer to or from joint tenants to tenants in common
  • Transfer following bankruptcy
  • Transfer for subdividing property
  • Registration of multiple leases on the same property
  • Transfer for company amalgamation
  • Transfer for escheats, reverts or forfeits to or from the Crown
  • Transfer under the Veterans’ Land Act (Canada)
  • Transfer to minors from the Public Guardian and Trustee
  • Transfer to Status Indians and Indian Bands
  • Transfer to or from trust companies or the Public Trustee

This property transfer tax bc calculator is provided for general information purposes only. Real Estate Coal Harbour does not guarantee the accuracy of the information shown and is not responsible for any consequences of using the calculator.

BC Property Transfer Tax Rebate & Refunds

If you are a home buyer and qualifies for any of the PTT exemptions, your lawyer or notary public will help you file the BC property transfer tax and claim the rebates.

A home buyer may receive the PTT refund if he or she meets the following criteria.

  • Became a permanent resident or Canadian citizen within one year of the date of property transfer
  • Tax was paid in error
  • Confirmed as BC Provincial Nominee and paid the additional property transfer tax between August 2, 2016, and March 17, 2017.

Property Transfer Tax Form

Property Transfer Tax Return

In British Columbia, a home buyer must file the property transfer tax return and pay all the property transfer tax when registering an interest in a property. Foreign buyers must also file the Additional Property Transfer Tax Return (FIN 532) with the property transfer tax return.

If the property value is over $3,000,000, the buyer must pay the further 2% tax and complete the PTT for residential properties over $3,000,000 (FIN 536).

Due to the property transfer tax complexities, I recommend all my buyers to hire either a lawyer or notary public to help file the Property Transfer Tax return. 

Property Transfer Tax on Pre-Sold Strata Units

Home buyers need to be aware that the property transfer tax applies to pre construction condo or strata units. The property transfer tax is payable on the completion date. PTT exemptions apply to pre sales condos and townhouses.

Buyers pay property transfer tax on the total amount paid to acquire the property. The total amount includes any money paid for upgrades, additions, or any other premium for the assignment of a written agreement.

The buyer can transfer the right to purchase the property to a related individual (brothers and sisters not included) before the property is registered at the land title office without incurring the PTT.

The same rule for PTT also applies to the foreign buyers buying a pre construction condo.

Click here to view details of Property Transfer Tax on Pre-sold Strata Units.

Frequently Asked Questions (FAQ) about Property Transfer Tax

How much is Property Transfer Tax in BC?

Property transfer tax varies depending on the price of the home. Click here to view BC Property Transfer Tax Rates.

Who pays the Property Transfer Tax in BC?

Home Buyer pays for the Property Transfer Tax in BC.

What is Property Transfer Tax in BC?

The Property Transfer Tax (PTT) is a land registration tax paid by the home buyer in BC when a property title is registered at the Land Title and Survey Authority.

How to avoid BC property transfer tax?

BC government offers numerous exemptions to qualified home buyers. The exemptions help to reduce and eliminate the Property Transfer Tax. Click here to see if you qualify for Property Transfer Tax Exemption.

How to calculate property transfer tax in BC?

I have created a property transfer tax BC calculator to help buyers calculate the PTT. Click here to use the property transfer tax calculator.

Is there a property transfer tax on new homes in BC?

Property transfer tax applies to new homes in BC. However, you may be exempted from the PTT if you are using the new home as your principal residence and the new home is less than $750,000.

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