BC’s Property Transfer Tax
It’s easy to look at the purchase price of your prospective new home and forget about all the closing costs like home insurance, appraisal and legal fees, and taxes. As a homebuyer, when you purchase a property you will also be paying a tax on the sale or transfer of ownership of any residential real estate in BC. This tax is known as Property Transfer Tax (PTT) and is paid any time a property changes hands at the Land Title and Survey Authority.
Is this tax a Property Tax?
No! Property Tax is an annual tax paid for each property you own. This tax is made up of both municipal and provincial parts so the rate varies per municipality. PPT has a unified rate throughout the province that is determined based on the fair market value of the property at the date of registration with the Land Title Office.
Who pays the Transfer Tax?
On the completion date, all buyers are obligated to remit the Property Transfer Tax (PTT) when the seller receives the funds and transfers the property title to the buyer. This single payment facilitates the registration of the transaction. Nonetheless, there exist a few exemptions to this tax. Are you eligible?
One of the most important exemptions is for first time home buyers. Designed to help British Columbians enter the market and purchase their first home, the province introduced the First Time Home Buyers’ Program (FTHB). If you qualify, it reduces or eliminates the PTT on your first home.
There are other exemptions such as for newly built homes, family exemptions and more. For the full list of exemptions, click here.
How do I calculate the PTT?
To help you estimate the PTT that will be owed on your property, you can use the Tax Calculator provided by the BCREA. Although, it’s not a replacement for the expertise of accounting or legal professionals, it can offer you an approximation of the expected figures.
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