Property Transfer Tax (PTT)
What Is PTT?
The Property Transfer Tax, or PTT, is a tax payable to the Provincial Government any time you gain interest in a property in British Columbia. The tax applies to all types of real estate, whether residential, commercial or industrial. The Property Transfer Tax should not be confused with your annual property taxes which are payable yearly to the municipal government.
How Is It Calculated?
The general amount of the Property Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value, 2% on the amount between $200,000 and $2,000,000, 3% on the amount over $2,000,000 and a further 2% on the amount over $3,000,000.
If you are a foreign national, you must also pay additional property transfer tax on the fair market value of the property.
There are certain exemptions for the property transfer tax if you are a first time home buyer, purchasing a newly built home as your principal residence, transferring property to your family. Our office can help you determine if you qualify for any exemptions.
General PTT Calculator
Estimate your Property Transfer Tax if you are not a First Time Home Buyer, purchasing a newly built home, or do not qualify for any exemptions.
Please contact our office if you have any questions regarding exemptions or the amount of your Property Transfer Tax.
First Time Home Buyer
One of the most common exemptions for the PTT is the First Time Home Buyer Exemption. To claim this, you must:
- Be a Canadian Citizen or Permanent Resident
- Never owned an interest in a principal residence anywhere in the world at any time;
- Is a citizen of or a permanent resident of Canada;
- Either lived in B.C. for at least a year immediately before you become the registered owner, or file at least two income tax returns as a British Columbia resident within the prior 6 years of becoming the owner;
- Move into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year.
Newly Built Home Buyer
To qualify for this exemption, the following criteria must be met:
- The property must be newly built (home or condo);
- You must be an individual and a Canadian citizen or permanent resident;
- You must use the property as your principal residence and move into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year;
- The property must be 0.5 hectares or 1.24 acres or smaller; and
- The fair market value of the property must be $750,000.00 or less.