Property Transfer Tax

You pay Property Transfer Tax when you purchase or acquire an interest in a property. The tax must be paid when you register changes to a certificate of title with the Land Title Office. For example, a change may include adding or deleting a name from the title.

Property Transfer Tax is different from property tax. You pay property tax on an annual basis for services you receive from your local government, even if no money changes hands.

Property Transfer Tax Rates 

The amount of tax due depends on the fair market value of the property that is transferred:

If the fair market value is $200,000 or less, the tax is 1% of the fair market value.
If the fair market value is greater than $200,000, the tax is 1% of the fair market value up to $200,000, plus 2% on the portion of the fair market value that is greater than $200,000.

For example:

• if fair market value of property is $150,000
• tax payable is: 1% of $150,000 = $1,500

• if fair market value of property is $250,000
• tax payable is: 1% of $200,000 = $2,000
• plus 2% of $50,000 = $1,000
• for total tax payable of $3,000

First Time Home Buyers' Program 

Introduced in 1994, the First Time Home Buyers' Program is designed to help British Columbians purchase their first home. Under the program, eligible purchasers can claim an exemption from Property Transfer Tax if the fair market value of the home is less than the threshold amount.

Requirements for First Time Home Buyers' Exemption

Purchaser:

• you are a Canadian Citizen, or a permanent resident as determined by Immigration Canada,
• you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property,
• you have never owned an interest in a principal residence anywhere in the world at anytime, and
• you have never received a first time home buyers’ exemption or refund.
  

The property you purchase qualifies if:

• the fair market value of the property is not more than the current threshold of $425,000,
• the land is 0.5 hectares (1.24 acres) or smaller, and
•  the property will only be used as your principal residence.
  

If the property does not meet all of these requirements, you may still qualify for a partial exemption.

A proportional exemption is provided for eligible residences with a fair market value of up to $25,000 above the threshold (i.e. up to $450,000).

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