The Property Transfer Tax (PTT) is a provincial land registration tax paid by a property buyer or owner when a property title is registered with the provincial Land Title and Survey Authority.
How much is the PTT?
- 1% on the first $200,000, and
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000.
For example, if the fair market value of a property is $450,000, the tax paid is $7,000.
If the property is transferred without money changing hands, for example, an inheritance from relatives, this is considered to be a non-arm’s length transaction. Relatives can include a parent, grandparent or child, but not siblings. A non-arm’s length transaction can also include an assignment from the buyer to their company.
Here, the fair market value is determined by an independent appraisal or by BC Assessment’s estimate of value.
What about pre-sales?
Buyers of pre-sold strata units will typically pay the PTT on the total consideration paid for the unit, not the fair market value on the date the title is registered.
The total consideration is the entire amount paid to acquire the property, including the price of the unit plus fees for upgrades or additions, or any other premiums for the assignment of a written agreement.
First-time home buyers may be exempt from the PTT under the BC First Time Home Buyers' Program if they meet specific conditions, for example, the price of the home they buy is up to $475,000. There is a proportional exemption for homes between $475,000 and $500,000. At $5 million and above, the rebate is nil.
Qualifying buyers of new homes may be exempt from paying the PTT if the purchase price of their home is priced up to $750,000. There is a proportional exemption for homes priced between $750,000 and $800,000. At $800,000 and above there’s no rebate.
Learn more about other exemptions from the PTT.
- Can I re-qualify as a first time home buyer?
- Do I qualify for the First Time Home Buyers Program if I’ve owned a mobile home?
Guide to the First Time Home Buyers' Program (opens a 2-page PDF)