BC Property Transfer Tax 2024
British Columbia Flag What is land transfer tax?
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.
BC Property Transfer Tax Calculator
Comparison of BC Land Transfer Taxes with Other Provinces
History of the Property Transfer Tax
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. In 2021, BC introduced an additional 2% tax on the portion of the price over $3,000,000 for residential properties. This brings the marginal residential rate to 5%.
Use our simple BC income tax calculator
BC Property Transfer Tax
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:
BC Property Transfer Tax Rates
| Purchase Price of Home | Property Transfer Marginal Tax Fee |
|---|---|
| First $200,000 | 1.0% |
| $200,000 to $2,000,000 | 2.0% |
| $2,000,000 to $3,000,000 | 3.0% |
| Over $3,000,000 | 5% for residential properties, 3% for commercial properties |
BC Land Transfer Tax Rebates
| Purchase Price of Home | First-Time Buyer Rebate |
|---|---|
| Up to $834,999 | Tax on the first $500,000 Refunded |
| From $835,000 to $860,000 | Partial Rebate, See Calculator |
| Over $860,000 | No First Time Buyer Rebate |
Foreign Buyers
If the home buyer is a foreign national (other than permanent residents of Canada), 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:
- Capital Regional District
- Fraser Valley Regional District
- Metro Vancouver Regional District
- Regional District of Central Okanagan
- Regional District of Nanaimo
However, foreign nationals who have work permits from the BC Provincial Nominee Program are exempt from this additional tax.
First Time Home Buyers’ Program
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:
- be a Canadian citizen or permanent resident
- have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a resident in the last 6 years
- have never owned an interest in a principal residence anywhere in the world at any time
- have never received a first time home buyers' exemption or refund
For a full exemption, the property must:
- be located in B.C.
- only be used as your principal residence
- have a fair market value of:
- $475,000 or less if registered on or before February 21, 2017, or
- $500,000 or less if registered on or after February 22, 2017
- $835,000 or less if registered on or after April 1, 2024 (of which only the first $500,000 would be exempt from the transfer tax).
- be 0.5 hectares (1.24 acres) or smaller
For a partial exemption, the property must have one or more of the following properties:
- Cost less than:
- $500,000 if registered on or before February 21, 2017, or
- $$525,000 if registered on or after February 22, 2017, or
- $860,000 if registered on or after April 1, 2024
- Is larger than 0.5 hectares
- Has another building on the property other than the principal residence
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. This exemption requires properties registered before April 1, 2024, to cost (land + building) less than $500,000 or $525,000 for a partial exemption. Properties registered after April 1, 2024, would enjoy the exemption if their cost (land + building) is less than $835,000 or $860,000 for a partial exemption. Receiving this exemption requires you to build and move into your home by the first anniversary of registration.
Other Exemptions
The Newly Built Homes Exemption qualifies for buyers of new homes and provides a full exemption for property priced up to $1,100,000 or a partial exemption if priced between $1,100,000 and $1,150,000 for properties registered on or after April 1, 2024. For properties which are registered before April 1, 2024, the exemption applies if the home is priced below $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 a principal residence for at least the rest of the registration year.
Other PPT exemptions exist for principal residence transfers, recreational residence transfers, family farm transfers, and more. These include:
- Purpose-built rental exemption, which relieves purchasers of new qualifying purpose-built rental buildings from the additional 2% tax on the portion of the price over $3,000,000.
- Family Exemptions, which include principal residence transfer between related individuals (child, grandchild, great-grandchild and their spouses, parent, grandparent and great-grandparent, your spouse and their child, parent and grandparent), recreational residence transfer between related individuals (child, grandchild, great-grandchild and their spouses, parent, grandparent and great-grandparent, your spouse and their child, parent and grandparent), divorce or marriage transfer (changing a joint tenancy into a tenancy in common or a tenancy in common into a joint tenancy), and family farm transfer.
- Other exemptions mostly relate to transfers that do not represent a genuine exchange of money for a piece of real property, including correcting conveyancing errors, transfers to charity, transfers to the crown or local government bodies, and transfers where the contract for purchase and sale is already registered, and PTT is paid at that time.
Visit our Canada Land Transfer Tax page to find out more information about land transfer and other taxes accross Canada.
Disclaimer:
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