What Is PTT?
The Property 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.
How Is It Calculated?
The amount of the Property Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value, 2% on the amount between $200,000 and $2,000,000, and 3% on the amount between $2,000,000 and $3,000,000, and 5% of the remaining fair market value.
The first calculator is what we call our standard calculator. This is to be used if the Buyer is not a First Time Home Buyer, or if they are purchasing a used home, not a new one.
First Time Home Buyer Exemption
The second calculator is to be used if the Buyer is a First Time Home Buyer. Just a reminder, a FTHB means the Buyer
- Has never had owned an interest in a principal residence anywhere in the world at any time;
- Is a citizen of or a permanent resident of Canada;
- 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;
- Moves into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year.
Newly Built Home Buyer
The third calculator is to be used if the Buyer is purchasing a Newly Built Home. To qualify for this exemption, the following criteria must be met:
The property must be newly built, as defined in the legislation
- The Buyer must be an individual and a Canadian citizen or permanent resident;
- The property must be used as the principal residence of the Buyer, who must move into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year;
- The property must be 1.24 acres or smaller.