Property Transfer Tax Changes

BC Real Estate
PROPERTY TRANSFER TAX CALCULATOR
 

Property Transfer Tax (sometimes called PPT) is a sales tax charged by the BC Government on all transfers of real estate in BC.

  • The PTT rate is determined as follows:
    • 1% on the portion of the price under $200,000
    • 2% on the portion of the price between $200,000 and $2,000,000
    • 3% on the portion of the price over $2,000,000
  • PTT is not calculated on the GST component of the price, for sales where GST applies.

For example, on the price of $4,000,000, it is calculated as follows:

  1. 1% on the portion of the price under $200,000, so 1% X $200K = $2,000;
  2. 2% on the portion of the price between $200,000 and $2,000,000, so 2% X ($2M-$2K=$1,800,000) = $36,000;
  3. 3% on the portion of the price over $2,000,000, so 3% X (Price of $4M - $2M [portion of price over $2M]) = $60,000;
  4. $2,000 + $36,000 + $60,000 = $98,000
  • (the previous PTT of 1% on 1st $200K + 2% on Balance of price = $78,000, so a $20,000 increase)

Conversely, on a price of $1,500,000, it is calculated as follows:

  1. 1% on the portion of the price under $200,000, so 1% X $200K = $2,000;
  2. 2% on the portion of the price between $200,000 and $2,000,000, so 2% X ($1.5M-$2K=$1,300,000) = $26,000;
  3. $2,000 + $26,000 = $28,000
  • (it remains the same as the previous PTT calculations)

First Time Home Buyers Exemption

  • First time home buyers pay no PTT on homes with a purchase price of $475,000 or less, but they pay full PTT on homes with a purchase price above $500,000.
  • If two people buy a home together and one is eligible for the First Time Home Buyers’ Exemption and one is not, then PTT will be charged proportionately to their ownership shares.
  • Purchasers claiming the First Time Home Buyers’ Exemption must live in the home for at least the first year after purchasing the home.

Newly Built Home Exemption

  • The Newly Built Home Exemption reduces or eliminates the amount of PTT a purchaser pays when purchasing a newly built home, including houses, apartments and townhomes.
  • The purchaser is not required to be a first time home buyer to qualify for the Newly Built Home Exemption.
  • Purchasers buying a newly built home pay no PTT on homes with a purchase price of $750,000 or less, but they pay full PTT on homes with a purchase price above $800,000.
  • Purchasers claiming the Newly Built Home Exemption must live in the home for at least at least the first year after purchasing the home.
Here's a great online PTT Calculator, courtesty of Rosborough & Co. (http://www.rosborough.com/PTTCalculator.htm)