The Property Transfer Tax (PTT) is a provincial land registration tax paid by a property buyer or owner when a property title is registered at a provincial Land Title and Survey Authority.
How much is the PTT?
The PTT is charged at a rate of:
- 1% on the first $200,000
- 2% on the balance up to and including $2,000,000
- 3% on the balance greater than $2,000,000
If the property is transferred without money changing hands, for example, an inheritance from relatives, this is considered to be a non-arm’s length transaction. Relatives can include a parent, grandparent or child, but not siblings. A non-arm’s length transaction can also include an assignment from the buyer to their company.
Here, the fair market value is determined by an independent appraisal or by BC Assessment’s estimate of value.
What about pre-sales?
Buyers of pre-sold strata units will typically pay the PTT on the total consideration paid for the unit, not the fair market value on the date the title is registered.
The total consideration is the entire amount paid to acquire the property, including the price of the unit plus fees for upgrades or additions, or any other premiums for the assignment of a written agreement.
First-time home buyers may be exempt from the PTT under the BC First Time Home Buyers' Program if they meet specific conditions, for example, the price of the home they buy is up to $475,000. There is a proportional exemption for homes between $475,000 and $500,000.
Learn more about other exemptions from the PTT here.
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