In British Columbia when you purchase then register your purchase of a home or other real estate a property transfer tax is due and payable.
Property Transfer Tax is not Property Tax, the Property Taxes are paid annually to your local municipal government. Property Transfer tax is only paid at the time of registering your purchase of Real Estate in BC. You’ll also are responsible to pay your share on the Local Property Taxes to Local Government
At the Time of your home Ownership Registration you, your lawyer or your notary must pay to the Provincial Government a property transfer taxHow Much Property Purchase Tax is Payable?
- 1% on the first $200,000 of the value of property, plus 2% on any amount over $200,000.
For Example: if you purchased a home or property for say $450,000, the amount of Property Transfer Tax (to the BC Provincial Government) payable would be 1% on $200,000 = $2,000 plus 2% on $250,000 = $5,000 for a total property transfer tax of $7,000.
Are there any exemptions?
Yes the most common exemption: 1st time home Buyers have an exemption available to them, provided they have not owned real estate anywhere in the world. See First Time Home Buyers Program
- net interest passing
- transfers involving joint tenants and tenants in common
- transfers involving an agreement for sale
- transfers following bankruptcy
- transfers resulting from marriage breakdowns
- transfers under the Veterans' Land Act (Canada)
- transfers by which property escheats, reverts or forfeits to the Crown, or where the property is returned
- transfers to municipalities and other local governments
So when budgeting to purchase a home or any real estate anywhere in BC also include the cost of the Property Purchase Tax along with your downpayment.
