In BC, the land transfer tax equivalant seen in other Canadian provinces is called the property transfer tax. When buying a home, many people overlook the significant cost of the property transfer tax. When you acquire a property (and the land it rests on), you must pay a tax to the government after the transaction closes. Our calculator outlines all the details you need to know about British Columbia's property transfer tax program.
Originally called the Property Purchase Tax, the PPT was first introduced in 1987 as a wealth tax to discourage speculation and cost 1% of the first $200,000 and 2% of the remainder, although 95% of home purchases did not qualify for the tax at the time as they were below the $200,000 mark. In 1994, the government introduced the First-Time Home Buyers’ Program and continued to modify it throughout the years. The Newly Built Home Exemption was introduced in 2016, and applied an additional 15% PPT on foreign buyers in 2017 which increased to 20% in 2018.Use our simple 2021 BC income tax calculator
Similar to Land Transfer Taxes in other provinces, BC government requires its home buyers to pay a Property Transfer Tax (PTT) when purchasing a new home. The tax is valued at:
|Purchase Price of Home||Property Transfer Marginal Tax Fee|
|$200,000 to $2,000,000||2.0%|
|$2,000,000 to $3,000,000||3.0%|
|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|
If the home buyer is a foreign national, foreign corporation, or a taxable trustee, an additional 15% PPT must be paid if the property was registered prior to February 20th, 2018 and increases to 20% if registered afterwards. The areas that require the additional tax are:
However, foreign nationals who have work permits from the BC Provincial Nominee Program are exempt from this additional tax.
The First Time Home Buyers’ Program reduces the amount of tax paid on the first home. The qualifications for the individual at the time of registration as well as the property are as follows:
The buyer must:
For a full exemption, the property must:
For a partial exemption, the property must have one or more of the following properties:
The Newly Built Homes Exemption qualifies for buyers of new homes and provides a full exemption for property priced up to $750,000 or a partial exemption if priced between $750,000 and $800,000. There are occupancy requirements for this exemption including a move-in date of within 92 days of registration and using the property as principal residence for at least the rest of the year.
The Vacant Land Exemption qualifies for registered vacant lots that are to have homes qualifying for the Newly Built Homes Exemption to be built upon it. Other PPT exemptions exist for principal residence transfers, recreational residence transfers, family farm transfers, and more.
Visit our Canada Land Transfer Tax page to find out more information about land transfer and other taxes accross Canada.