New Property Transfer Tax Exemptions & New Homes

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As a prospective homebuyer in BC, understanding the intricacies of the property transfer tax (PTT) is crucial. This closing cost, also known as the land transfer tax, can significantly impact your finances. In this blog post, we provide essential information on how to calculate the PTT, who pays it, and strategies to potentially avoid or minimize it. Additionally, we delve into recent updates regarding PTT exemptions, particularly for first-time buyers and newly built homes, offering clarity and guidance to ensure a smooth transition into homeownership.

What is Property Transfer Tax (PTT)?

The Property Transfer Tax is a provincial tax imposed on buyers when they acquire a property. It is payable upon completion of the sale, at the time of title registration and transfer. It is important to note that the PTT is distinct from annual property taxes, which are levied by municipalities on a yearly basis.

Calculating Property Transfer Tax

The calculation of PTT is based on the fair market value of the property being transferred. For Canadian citizens or permanent residents, the tax rates are as follows:

  • 1% on the first $200,000 of the fair market value
  • 2% on the portion above $200,000 up to and including $2,000,000
  • 3% on the portion above $2,000,000
  • An additional 2% on the portion above $3,000,000 for residential properties

Foreign buyers or entities are subject to an additional 20% tax on their proportionate share of the property’s fair market value.

Property Transfer Tax Exemptions

1. First-Time Home Buyers Exemption:

  • First-time homebuyers may be eligible for a partial exemption if the property’s fair market value is under $835,000.
  • The exemption is up to $8,000 for properties under $500,000, with a partial exemption available for properties under $860,000.
  • Starting April 1, 2024, changes to the exemption will be implemented, offering partial exemptions for properties under $835,000.

2. Newly Built Homes Exemption:

  • Newly built homes with a fair market value of up to $1,100,000 are eligible for an exemption.
  • This includes various types of newly constructed properties such as houses, apartments in condominium buildings, and manufactured homes on vacant land.
  • Partial exemptions are available for newly built homes valued between $1,100,000 and $1,150,000.

How to Calculate Property Transfer Tax (PTT) – Examples:

Example One: Purchase price $750,000

  • Tax paid: $13,000
  • Breakdown: 1% on the first $200,000 ($2,000) + 2% on portion above $200,000 and up to $2,000,000 ($11,000)

Example Two: Purchase price $4,500,000

  • Tax paid: $143,000
  • Breakdown: 1% on the first $200,000 ($2,000) + 2% on portion up to $2,000,000 ($36,000) + 3% on portion above $2,000,000 ($75,000) + 2% on portion above $3,000,000 ($30,000)

Navigating the property transfer tax landscape in BC can be complex, but understanding its nuances is essential for prospective homebuyers. By grasping the calculation methods, exemptions, and recent updates, individuals can make informed decisions and potentially minimize their financial burden. Whether you’re purchasing your first home or considering a newly built property, staying informed about property transfer tax regulations ensures a smoother and more transparent homebuying process.


It is so important to us that you feel empowered and educated throughout the buying and selling process – if you want to achieve your real estate goals or are thinking about listing your home soon, give us a call, text, or email with any questions you have! We can answer all of your questions, and give you specific tips related to the investing, stratas, and more. We’re here to help.