Property Transfer Tax
Tax Calculation
1% on the first $200,000 of the purchase price plus 2% on the remainder. First time buyers may be exempt from paying this tax.
First Time Home Buyers may qualify for exemption if
- The purchase price (including net GST) is below $375,000. A partial rebate on purchases between $375,000 and $400,000 is available (see below). There is no exemption when the market value exceeds $400,000
- Each purchaser applying for exemption is a permanent resident of Canada or a Canadian citizen. Each purchaser must have resided in British Columbia for at least one year immediately prior to registration date
- Each purchaser has never owned an interest in a principal residence anywhere.
- The amount borrowed must be at least 70% of the fair market value of the property. The amount borrowed does not include funds borrowed from relatives.
- During the first 12 months, the mortgage cannot be reduced by more than the greater of $13,000 and the amount that would reduce the mortgage to 70% of the fair market value.
- The mortgage term must be at least one year. If not, the full Property Transfer Tax is payable at the time of purchase and the rebate may be applied for after residing in the residence for 12 months.
- The purchaser must occupy the property within 92 days from the date of registration of the transfer in the Land Titles Office.
- The purchaser must reside in the property for a period of at least one year from the date of transfer.
- If one of the purchasers does not qualify for exemption and the other does, the amount of exemption will depend on the percentage of ownership registered. For example; Joe qualifies and owns 60% of the property, Sam does not qualify for the exemption and owns 40% of the property. They would qualify for 60% of the tax exemption.
Example where the market value is $395,000
| PTT Exemption = | ($400,000 - $395,000) | = 20% Exemption |
| $25,000 |
The pro-rata exemption is calculated as 20% of $5,900 = $1,180
The purchaser now pays $4,720 in PTT
