Property Transfer Tax (PTT) Calculator
Property Transfer Tax is a tax payable under the Property Transfer Tax Act on the transfer of an interest in real property by the person acquiring the interest.
When buying a home in BC, the buyer automatically pays the provincial Property Transfer Tax (PTT).
Property Transfer Tax is charged at a rate of 1% on the first $200,000 of the fair market value of the property, and 2% on the rest.
For example, if the fair market value (FVR) of the property is $150,000, the tax is 1% of $150,000 or $1,500.
If the property's fair market value (FVR) is $500,000, then the tax is 1% of $200,000 ($2,000) plus 2% of the remaining $300,000 ($6,000) for a total tax of $8,000.
If you're buying your first property, then you're not required to pay Property Transfer Tax. The property must be your principal residence, and you must live there for at least one year. A full exemption is possible only when the fair market value (FMV) of your property does not exceed $425,000 and the land does not exceed 0.5 hectares (1.24 acres).
Here's where it gets complicated. If the value exceeds the qualifying value of $425,000 by no more than $25,000, then you're eligible for a partial exemption.
For example, suppose the fair market value (FVR) is $445,000.
If the property's fair market value (FVR) is $445,000, then the tax is 1% of $200,000 ($2,000) plus 2% of the remaining $245,000 ($4,900) for a total tax of $6,900.
Your first-time homebuyer tax is $6,900-$1,380=$5,520
Disclaimer: Information is provided for sample purposes only. does not guarantee its accuracy. Information should be verified and should not be relied upon as legal, financial, or other advice.