Do I Need To Pay Property Transfer Tax in BC?
Homebuyers have a lot to pay attention to when it comes to purchasing a home⏤and keeping track of initial costs and taxes can be difficult to navigate alone. Walk though the basics of property transfer tax in BC in this post and get the help you need to file this return with one of our qualified Vancouver notaries at Morris Notary.
What is property transfer tax in BC?
Property transfer tax in BC is a tax on the sale or transfer of ownership of any residential real estate property in the Province. All buyers have to pay this tax apart from specific exemptions.
How much is property transfer tax in BC?
The amount of property tax you pay is calculated based on the fair market value of the land and building on the day it was registered with the Land Title Office.
If you are a Canadian citizen or permanent resident (and have no exemptions), the rate is as follows:
- 1% on the first $200,000
- 2% on the fair market value greater than $200,000 and up to and including $2,000,000
- 3% on the balance greater than $2,000,000
- Note that if the property is worth over $3,000,000, a further 2% tax will be applied.
You can estimate your property transfer tax using a calculator from the BC government available here: https://forms2.gov.bc.ca/forms/content?id=EEE44ACAC0DB4212BB616D7BD233F2A6 .
When am I exempt from paying property transfer tax in BC?
You do not have to pay property transfer tax in the following cases:
- First time home buyer’s exemption. If you are entering the market for the first time, the Province offers this program to either reduce or eliminate the property transfer tax on your first home. To be a candidate, you must never have owned an interest in a principal residence anywhere in the world.
- Newly built home exemption. This applies when you purchase a newly built home at a fair market value of $750,000 or less.
There are certain other exemptions that are less common such as transfers that happen with related individuals, transfers resulting from a marriage breakdown and transfers involving registered charities. If you have specific questions about your eligibility for these exemptions or want help to apply for these exemptions, contact us.
Need help paying your property transfer tax?
If you have other questions or want help as you complete your property transfer tax, contact Morris Notary. Our professional notaries are available to help you complete your transactions with as little hassle as possible with a friendly, personalized approach. Call our downtown notary by filling in the contact form on our website today.