WHAT IS IT?
When buying a home in the province of BC, the buyer will automatically be responsible for paying the Property Transfer Tax. The tax amount is calculated on the fair market value of the home or property. This tax is different from the property tax. Property taxes are paid on an annual basis for services provided by local government.
HOW MUCH IS IT?
This tax is charged at a rate of 1% on the first $200,000 of the market value of the property and 2% on the remaining amount.For example, if the property's market value is $500,000, the tax is 1% of $200,000 ($2000) plus 2% of the remaining $300,000 ($6000) for a grand total of $8000.
POSSIBLE EXEMPTIONS
First time home buyers, who qualify, may be exempt from paying the 1% Property Transfer Tax on the first $200,000 and %2 of the remainder of the purchase price for a home or property priced up to $475,000. There is a proportional exemption for homes between $475,000-$500,000. Homes priced over $500,000 don't qualify for tax exemption. For more information or clarification click here:
HELP
To help home buyers understand the tax and how to calculate your payment, the Ministry of Finance now provides plain language documents on all aspects of the Property Transfer Tax. Here are the details:
