Property Transfer Tax (ppt) in Vancouver, BC, Canada, and conditions for exemption

Property Transfer Tax (ppt) in Vancouver, BC, Canada, and conditions for exemption

In this post, we’re going to talk about real estate acquisition taxes, a tax that occurs when you buy a home in Vancouver BC, Canada.
Taxes can be a complicated subject, but it’s good to know a little bit of common sense because the more you know about them, the better you can plan your investments.
Of course, there are a lot of variables when it comes to taxes, so use common sense and be sure to consult with a professional before making any actual transactions.

When you buy a home in Vancouver BC, Canada, you’ll incur a Property Transfer Tax (PTT, also known as real estate transaction tax for short).
It’s a tax that’s charged to the buyer, so it’s similar to a stamp duty in South Korea. In BC, new home purchases are subject to a 5% GST on top of the purchase price.

Real estate acquisition taxes in Vancouver BC, Canada are set out in the table below, with the amount of tax due depending on the fair market value (primarily the sales price) of the property.

BC, Canada Real Estate Acquisition Tax Rate Schedule

Fair market value (often the sale price)	Tax rates
Up to $200,000	1%
Over $200,000 and up to $2,000,000	2%
Over $2,000,000	3%
Over $3,000,000	Additional 2 percent

The link below lets you pre-calculate your real estate taxes.

Calculate your estimated BC real estate acquisition tax liability

BC, Canada Property Transfer Tax (PTT) reduction conditions

However, if certain conditions are met, there are ways to exempt or reduce BC real estate taxes.
Below are some specific conditions that you may want to consider to help you save money.

First-Time Home Buyer:

Prerequisites

1. You must be a permanent resident or citizen of Canada at the time you register your home. If you become a permanent resident or citizen within one year of purchase, the refund is available.
2. You must have been a resident of BC for at least one year immediately prior to purchase, or you must have paid taxes for at least two tax return years (six years) in the six months prior to purchase. (Only one of these must be met)
3. The home you’re buying must be your first home, meaning you can’t have bought anywhere in the world before.
4. Nor should it be waived or refunded through a first-time buyer offer.
5. If it’s a conventionally built home, you must move in within 92 days of purchase and live in the home for at least one year (there are exceptions, such as the death of the owner, and some exemptions for living in the home for less than one year).

Tax breaks

1. Full exemption if valued at $835,000 or less (revised April 1, 2024; $500,000 if purchased before the revision)
2. Partial exemption if the value is more than $835,000 but less than $860,000
3. If you have more than $860,000, you can’t get an exemption.

Purchase Newly Built Homes:

1. If you are buying a newly constructed home (including a condominium), you are exempt from paying acquisition tax on the value.
2. New construction homes valued at $1,100,000 or less are fully exempt (revised 4/1/2024, previously $750,000)
3. Homes valued between $1,100,000 and $1,150,000 are eligible for a partial exemption.

For additional information on taxes, you may want to check out the following sites for more information

https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax

We hope this helps you understand the information related to buying a property or new home 🙂

If you’re interested in learning more about the Vancouver real estate sales process, check out our post below

Vancouver Real Estate Sales Process