Understanding Property Transfer Tax

The Property Transfer Tax (PTT) is a fee paid by buyers when purchasing real estate in British Columbia. It is calculated based on the fair market value of the property at the time of registration.

PTT Rates in 2025:

• 1% on the first $200,000
• 2% on the portion from $200,000 to $2,000,000
• 3% on the portion from $2,000,000 to $3,000,000
• 5% on the portion above $3,000,000 (for residential properties only)

Exemptions for Property Transfer Tax

First-Time Home Buyer Exemption

This program provides tax relief for eligible first-time homebuyers:

• Full exemption for homes priced up to $835,000
• Partial exemption for homes priced between $835,000 and $860,000

Eligibility Criteria:

• Canadian citizen or permanent resident
• Lived in BC for at least one year or filed two BC income tax returns in the last six years
• Never owned a principal residence before

Newly Built Home Exemption

This exemption applies to newly constructed homes:

• Full exemption for homes valued up to $1,100,000
• Partial exemption for homes valued between $1,100,000 and $1,150,000

Eligibility Criteria:

• The buyer must be a Canadian citizen or permanent resident
• The home must be used as a principal residence within 92 days of registration
• The property must not exceed 0.5 hectares in size

Important Notes

• Foreign buyers face an additional tax of 20% in specified areas.
• If you move out of your exempted property within one year of purchase, you may need to repay part of the exemption.
• The exemptions aim to make homeownership more affordable while promoting housing development.