How Much Property Transfer Tax (PTT), must be paid by the BUYER when they are buying a home/property, in the Province of British Columbia (BC), Canada?
Don’t let yourself be caught not understanding the Property Transfer Tax in BC.
If you are a Canadian Citizen, or Permanent Canadian resident, and if you purchase a home in B.C. then you may have to pay a property transfer tax(PTT) on the purchase price.
There are exemptions to this PTT if this is your first home, or a brand new home, that costs less than $750,000, then you don’t have to pay any PTT.
For all other buyers, the B.C. Property Transfer Tax (PTT) is equal to 1% of the first $200,000, and 2 % of the balance of the gross sales price. So for example, if you purchased a $520,000 house the
PTT = ( 1% x $200,000) + ( 2% x $320,000) = $8,400
Since Feb. 20 2018 new rules came in , the PTT has not changed for Canadian Citizens and Permanent Residents, however for foreign buyers there is an additional tax for specified areas in BC.
FOREIGN BUYERS Pay more, PTT, in certain specified areas in B.C.
If the property transfer is registered on or before February 20, 2018 and is within the Greater Vancouver Regional District, the additional tax amount is 15% of the fair market value of your proportionate share.
So for a $520,000 purchase you would pay an additional $78,000 if bought before Feb. 20th , 2018 only in the Greater Vancouver Area.
If the property transfer is registered on or after February 21, 2018 and is within the following areas, the tax amount is 20% of the fair market value of your proportionate share:
- Capital Regional District
- Fraser Valley Regional District
- Greater Vancouver Regional District
- Regional District of Central Okanagan
- Regional District of Nanaimo
The additional property transfer tax doesn’t apply to properties located on Tsawwassen First Nation lands.
Now, after Feb 21st 2018 that surtax for foreign buyer’s would be, for a $520,000 property, $104,000 and affect a much larger Geographic area, as indicated above.