Ravi Punia - REALTOR®

Fraser Valley Specialist

FRASER VALLEY REAL ESTATE BLOG POSTS

What is the Property Transfer Tax in B.C. ?


Homebuyers in the Fraser Valley real estate market (and all of British Columbia), need to be aware of the Property Transfer Tax (PTT).  It forms a significant portion of the closing costs, when buying a home or property in the province.


The B.C. government describes the tax as:


"When you purchase or gain an interest in property that is registered at the Land Title Office, you or your legal professional must file a property transfer tax return and you must pay property transfer tax, unless you qualify for an exemption.


In most cases, property transfers are completed by a legal professional."


Furthermore, the government explains what the tax is based on:

"The property transfer tax is based on the fair market value of the property (land and improvements) on the day it was registered with the Land Title Office, unless you qualify for an exemption or purchase a pre-sold strata unit.

Property transfer tax should not be confused with annual property taxes. Annual property taxes are paid yearly to your municipal or rural tax office for each property you have a registered interest in to fund services in your area."

 
There are three rates to consider when calculating your total property transfer tax amount:
 

1) General Property Transfer Tax

The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:

  • 1% of the fair market value up to and including $200,000

  • 2% of the fair market value greater than $200,000 and up to and including $2,000,000

  • 3% of the fair market value greater than $2,000,000


2) Further 2% on Residential Property Over $3,000,000

If the property has residential property worth over $3,000,000, a further 2% tax will be applied to the residential property value greater than $3,000,000. 


If the property is mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property.


3) Additional Property Transfer Tax

If you’re a foreign national, foreign corporation or taxable trustee, you must also pay the additional property transfer tax on the fair market value of the residential portion of the property if the property is within a specified area of B.C.



Summary

As you can see, the property transfer tax in B.C. adds a significant cost to the purchase of a home or property. This is especially true in Metro Vancouver and Fraser Valley real estate markets, where home prices are very expensive.


As a homebuyer, I can assist you in calculating and figuring out just how much this burdensome tax might cost you.  I specialize in working with homebuyers in the Fraser Valley and Metro Vancouver markets to find houses, townhouses and condos that fit their budgets.


Please contact me today to discuss any matter related to buying a home.



Comments:
No comments

Post Your Comment:



*This blog communication is not intended to cause or induce breach of an existing agency agreement.  Views are my own and do not reflect those of any organizations that I may be associated with.

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.