PTT Calculator and Exemptions
Enter Fair Market Value:
Total Property Transfer Tax:
What is Property Transfer Tax (PTT)?
When you purchase real estate, you have to pay Property Transfer Tax (PTT) to the provincial government. The tax applies to all types of real estate, including residential, commercial and industrial. It is based on your property’s Fair Market Value.
What is Fair Market Value?
Fair Market Value is the price that the seller would receive on the open market. Often it is the actual price you paid for the property.
How is it Property Transfer Tax Calculated?
The Property Transfer Tax rate increases with the property’s Fair Market Value:
- 1% on the first $200,000 of the property’s Fair Market Value
- 2% on the amount between $200,000 and $2,000,000
- 3% of the remaining Fair Market Value.
Here Are Some Examples:
If Fair Market Value is $150,000, PTT is $1,500.
- $1,500 is 1% of $150,000.
For property valued at $700,000, PTT is $12,000.
- That’s 1% on the first $200,000 ($2,000) PLUS 2% on the remaining $500,000 ($10,000).
If the property is $2,500,000, PTT is $53,000.
- That’s 1% on the first $200,000 ($2,000), 2% on $1,800,000 ($36,000), and 3% on $500,000 ($15,000).
Are There Any Exemptions?
When you purchase or gain an interest in a property, you might qualify for a tax exemption. If you qualify for an exemption, you need to complete the Special Tax Return when you register the property transfer.
- First time home buyers (More details below)
- Transfer of a newly built home (More details below)
- Transfer to correct a conveyancing error (PDF)
- Transfer to a registered charity (PDF)
- Registration of an agreement for sale (PDF)
- Transfer to or from joint tenants to tenants in common (PDF)
- Transfer following bankruptcy (PDF)
- Transfer for subdividing property (PDF)
- Registration of multiple leases on the same property (PDF)
- Transfer for company amalgamation (PDF)
- Transfer for escheats, reverts or forfeits to or from the Crown (PDF)
- Transfer under the Veterans’ Land Act (Canada) (PDF)
- Transfer to minors from the Public Guardian and Trustee (PDF)
- Transfer to Status Indians and Indian Bands (PDF)
- Transfer to or from trust companies or the Public Trustee (PDF)
How Do You Qualify for the First Time Home Buyers Exemption?
To qualify as a first time home buyer and avoid paying the PTT, you must meet the following criteria:
- You have never owned an interest in a principal residence anywhere in the world at any time
- You’re a Canadian citizen or permanent resident
- You have resided in BC for 12 consecutive months immediately before the date you become the registered owner, or you have filed two income tax returns as a British Columbia resident within the prior six years of becoming the owner
- To obtain a full exemption, the purchase price must not exceed $500,000. You can get a partial exemption on homes valued between $500,000 and $525,000
- You must move into the property within 92 days of registering your purchase and reside there for at least one year
- You might be eligible for a pro rata exemption if your property exceeds 0.5 hectares or a portion of the property is not residential (i.e., commercial lofts), yet yhe purchase price of entire property must not exceed the price limitations.
How Do You Qualify for the Newly Built Home Exemption?
To qualify for the Newly Built Home Exemption and avoid paying the PTT, you must meet the following criteria:
- The property must be newly built, as defined in the legislation
- You must be an individual (not a company, trust, etc.)
- You must be a Canadian citizen or permanent resident
- You must move into the property within 92 days of registering your purchase, make the property your principal residence, and reside there for at least one year
- To obtain a full exemption, the purchase price must not exceed $750,000. You might be eligible for a partial exemption if your home is valued between $750,000 and $800,000
- The property must be 1.24 acres or smaller.
What About Property Tax?
Property Transfer Tax is not the same as Property Tax. The Property Transfer Tax is a one-time tax paid to the provincial government by purchasers of real estate. Property Tax is paid on an annual basis to the local municipality.
The information you obtain at this site is not, nor is it intended to be legal advice. If you want to learn more about Property Transfer Tax, contact us. We would love answer your specific questions about real estate and property tax.