BC Property Purchase Transfer Tax Information
In the Province of British Columbia, Buyers pay PPTT It is important to note that this tax is supposed be based on the fair market value of the property, which is typically the purchase price.
The amount of the PPTT is 1% on the first $200,000. plus 2% on the Balance up to $2,000,000. 3% is charged on the balance of the purchase over $2,000,000.
Exemptions: To qualify you must be a Canadian Citizen or a Permanent Resident. You must have lived in B.C. for the past 12 months and must have filed at least 2 income tax returns as a B.C. Resident in the past 6 years. You must not have owned Property anywhere in the World previously. You must live in the house for at least one year or you could be subject to paying the PPTT after the purchase process has been completed.
The two most common PPTT exemptions that may apply to you are:
First Time Buyers Exemptions apply to purchases less than $475,000. to $500,000. if the property lot size is less than 1.24 acres or $500,000. To $525,000 if the property is over 1.25 acres. Partial exemptions are calculated on a sliding scale of the applicable $25K
Currently there is an exemption if you purchase a Newly Constructed or To Be Constructed Property for $750,000 or less.