New BC Property Transfer Tax 

(February 21, 2016 , posted in Government Policy)

The Property Transfer Tax (PTT) is a provincial tax now charged at a rate of:
  • 1% on the first $200,000,
  • 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
  • 3% on the portion of the fair market value greater than $2,000,000.
Exemptions·         
When you register your property title, you must pay the PTT, unless you qualify for exemptions. Exemptions apply only to property owners who live in their home as their principal residence for a year after the purchase (relatives do not qualify). BC will share information with Revenue Canada to double-check whether the rules are being followed.

Example 1 – Resale home price: $750,000 
1% PTT on first $200,000 = $2,000
2% PTT on remainder of $550,000 = $11,000
Total PTT: $13,000

Example 2 – New Home price: $700,000
PTT = $0

No exemptions on homes priced from $800,000+.

Example 3 – New or resale home price: $1,000,000
1% PTT on first $200,000 = $2,000
2% PTT on remainder of $800,000 = $16,000
Total PTT: $18,000

Example 4 – New or resale homes price at $7,700,000
Before February 16, 2016
1% PTT on first $200,000 = $2,000
2% PTT on remainder of $7,500,000 = $150,000
Total PTT: $152,000

After February 16, 2016
1% PTT on first $200,000 = $2,000
2% PTT on $1,800,000 = $36,000
3% PTT on amount between $2,000,000; and $7,700,000 (which is $5,700,000) = $171,000
PTT: $209,000

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