Property Purchase Transfer Tax

The Property Purchase Transfer Tax is a tax payable to the Provincial Government by purchasers of real estate.  The tax applies to all types of real estate, whether residential, commercial or industrial.

The amount of the Property Purchase Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value and 2% on the remaining fair market value.

There are a number of exemptions available to purchasers so that the tax is not payable.  The most common is the exemption for “First Time Home Buyers”.  To qualify for an exemption to the Property Purchase Tax as a First Time Home Buyer, the following criteria must be met:

  • Purchaser must never have owned an interest in a principal residence anywhere in the world at any time;
  • Purchaser must be a citizen of or a permanent resident of Canada;
  • Purchaser must have resided in B.C. for 12 consecutive months immediately before the date they become the registered owner, or the Purchaser has filed two income tax returns as a British Columbia resident within the prior 6 years of becoming the owner;
  • To obtain full exemption, the purchase price must not exceed $475,000.00. A partial exemption is available for homes between $475,000.00 and $500,000.00

Other facts about Property Purchase Transfer Tax:

  • Homes are not charged PTT on the GST component of the price, for sales where GST applies.
  • If two people buy a home together, and one is eligible for the First Time Home Buyers Special rate, and one isn’t, then tax will be charged proportionately to their ownership share.
Property Transfer Tax should not be confused with Property Tax.  The Property Transfer Tax is a one time tax paid to the Provincial Government by purchasers of real estate.  The Property Tax is the tax paid on an annual basis to the local City/Municipality. –
See more at: http://www.bcrealestatelawyers.com/faqs/ptt.php#sthash.MOJqXvbh.dpuf

– See more at: http://www.bcrealestatelawyers.com/faqs/ptt.php#sthash.MOJqXvbh.dpuf

– See more at: http://www.bcrealestatelawyers.com/faqs/ptt.php#sthash.MOJqXvbh.dpuf

 

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