What is PTT?

PTT, or Property Transfer Tax, is a tax imposed by the Provincial Government on individuals or entities purchasing real estate. This tax applies universally to all types of real estate, including residential, commercial, and industrial properties.

How is PTT Calculated?

The calculation of the Property Transfer Tax is structured as follows:

1% tax rate is applied to the initial $200,000.00 of the property's fair market value.

A 2% tax rate is applied to the amount exceeding $200,000 but not exceeding $2,000,000.

A 3% tax rate is applied to the amount exceeding $2,000,000 but not exceeding $3,000,000.

Finally, a 5% tax rate is applied to the remaining fair market value of the property.

First-Time Home Buyer Exemption

First Time Home Buyer is defined as follows:

Has never owned an interest in a principal residence anywhere globally at any time;

Is a Canadian citizen or permanent resident;

Has resided in British Columbia for 12 consecutive months immediately prior to becoming a registered owner, or has filed two income tax returns as a British Columbia resident within the six years preceding ownership;

Moves into the property within ninety-two days after registration of the purchase and resides in the property for at least one year;

Regarding the Fair Market Value (FMV) of the property, the following exemptions apply:

A full Property Transfer Tax (PTT) exemption for properties with an FMV of $500,000 or less;

A partial exemption of $8,000 for properties with an FMV over $500,000 and under $835,000;

A sliding scale exemption for properties with an FMV over $835,000 and under $860,000; and

No exemption for properties with an FMV over $860,000.

Newly Built Home Buyer

To qualify for this exemption, the following criteria must be met:

The property must be newly constructed, as defined by the legislation;

The Buyer must be an individual who is a Canadian citizen or permanent resident;

The property must be used as the Buyer's principal residence, with the Buyer moving in within ninety-two days after registration and residing in the property for at least one year;

The property must be 1.24 acres or smaller;

To receive the full exemption, the home must be priced under $1,100,000. A partial exemption is available for properties with a fair market value between $1,100,000 and $1,150,000.