Guide to the BC Property Transfer Tax Form

Buying property in British Columbia comes with several costs beyond the purchase price, and the Property Transfer Tax (PTT) is one of the most significant. Whether you are a newcomer buying your first home or an experienced buyer, understanding the PTT and the associated forms is essential. This guide explains what the Property Transfer Tax is, how it is calculated, what exemptions are available, and how to complete the PTT form.

What Is the BC Property Transfer Tax?

The Property Transfer Tax is a provincial tax that applies whenever a property changes ownership in British Columbia. It was introduced in 1987 and is administered by the BC Ministry of Finance. The tax applies to all types of property transfers, including purchases, gifts, and transfers between related parties. The PTT is separate from any municipal property taxes you may pay annually as a homeowner.

The PTT is calculated based on the fair market value of the property at the time of transfer. Your lawyer or notary public will typically handle the filing of the PTT return on your behalf as part of the property closing process. For more information, visit the BC government Property Transfer Tax page.

How Is the PTT Calculated?

The general PTT rate is structured as follows:

• 1% on the first $200,000 of the property's fair market value.
• 2% on the portion of the fair market value between $200,001 and $2,000,000.
• 3% on the portion of the fair market value greater than $2,000,000.
• 5% on the portion of the fair market value greater than $3,000,000 for residential properties.

For example, if you purchase a home for $750,000, the PTT would be calculated as follows:

• 1% of $200,000 = $2,000
• 2% of $550,000 = $11,000
• Total PTT = $13,000

This is a significant cost that you should factor into your budget when planning a home purchase. Our guide on buying your first home in Canada as a newcomer covers budgeting for all the costs involved in a home purchase.

First-Time Home Buyers Exemption

If you are a first-time home buyer, you may qualify for a full or partial exemption from the PTT. To qualify for the full exemption, you must meet all of the following criteria:

• You are a Canadian citizen or permanent resident.
• You have lived in BC for at least one year immediately before the date of registration, or you have filed at least two income tax returns as a BC resident in the six years before the registration date.
• You have never owned a principal residence anywhere in the world at any time.
• You have never received a first-time home buyers exemption or refund.
• The property will be your principal residence.
• The property has a fair market value of $500,000 or less (for a full exemption) or between $500,000 and $525,000 (for a partial exemption).
• The property is 0.5 hectares (1.24 acres) or smaller.

For complete details about the first-time home buyers exemption, visit the BC government first-time home buyers page.

Newly Built Home Exemption

If you are purchasing a newly built home, you may qualify for a separate exemption. This exemption is available regardless of whether you are a first-time buyer. The requirements include:

• The property must be a newly built home (not previously occupied).
• The fair market value must be $750,000 or less for a full exemption, or between $750,000 and $800,000 for a partial exemption.
• The property must be used as your principal residence.
• You must be a Canadian citizen or permanent resident.

Details are available on the BC government newly built home exemption page.

Additional Property Transfer Tax for Foreign Buyers

An additional 20% PTT applies to foreign nationals, foreign corporations, and taxable trustees who purchase residential property in designated areas of BC, including Metro Vancouver, the Capital Regional District, the Fraser Valley, the Regional District of Central Okanagan, and the Regional District of Nanaimo. This additional tax is intended to address housing affordability concerns.

If you are a newcomer on a work permit, you may be subject to this additional tax. However, if you later become a permanent resident or Canadian citizen, you may be eligible for a refund of the additional PTT under certain conditions. Check the additional PTT information page for current rules.

How to Complete the Property Transfer Tax Form

The Property Transfer Tax Return is filed electronically through the Land Title and Survey Authority of BC (LTSA) as part of the property transfer process. In most cases, your lawyer or notary public will complete and file this form on your behalf. However, it is helpful to understand what information is required:

• Transferor information: The name and details of the person or entity transferring the property (the seller).
• Transferee information: Your name, address, date of birth, citizenship status, and social insurance number.
• Property details: The legal description of the property, the parcel identifier (PID), and the property address.
• Fair market value: The fair market value of the property at the time of transfer. This is usually the purchase price, but ICBC and the province may assess a different value if the purchase price is below market value.
• Exemption claims: If you are claiming a first-time home buyers exemption, newly built home exemption, or any other exemption, this is where you indicate your claim.
• Additional PTT declaration: If applicable, you must declare whether the additional foreign buyers PTT applies.

Common Exemptions and When They Apply

Beyond the first-time home buyers and newly built home exemptions, there are several other PTT exemptions that may apply in specific situations:

• Transfer to a related individual: Transfers between related individuals (such as spouses) may be exempt from PTT under certain conditions.
• Transfer to or from a family farm: Certain transfers of farm property between family members may qualify for an exemption.
• Transfer resulting from a separation agreement: If property is transferred as part of a separation agreement, the transfer may be exempt.
• Transfer to a municipality or government body: These transfers are generally exempt.

For a full list of exemptions, visit the BC PTT exemptions page.

When and How to Pay

The PTT is due at the time of property registration. Your lawyer or notary will include this cost in the statement of adjustments you receive at closing. The payment is typically made from the funds you provide for the purchase, and your legal representative handles the actual payment to the government on your behalf.

PTT and Your Overall Home Buying Budget

The Property Transfer Tax is just one of several closing costs you should plan for when buying a home in BC. Other costs include legal fees, home inspection fees, appraisal fees, title insurance, and moving costs. As a newcomer, it is important to understand all these costs so you can budget appropriately. Our guide on buying your first home in Canada provides a comprehensive overview of all the costs involved.

If you are also looking into the BC Homeowner Grant, which can help reduce your annual property taxes after you purchase your home, be sure to read our detailed guide on that topic as well.

Tips for Newcomers

• Work with a real estate lawyer or notary who has experience with newcomer buyers. They can help you navigate the exemptions and ensure your PTT return is filed correctly.
• If you are not yet a permanent resident, be aware of the additional foreign buyers PTT and factor it into your budget.
• Keep copies of all documents related to your property purchase for your records.
• If you are renting while saving for a home, check out our guide on how to apply for rental housing in BC.
• Learn about car insurance in BC as another important expense to budget for as a newcomer.

Final Thoughts

The BC Property Transfer Tax is an important cost to understand when purchasing property in British Columbia. By knowing the rates, exemptions, and filing process, you can plan ahead and avoid surprises at closing. Whether you are a first-time buyer or an experienced homeowner, working with a knowledgeable lawyer or notary ensures that your PTT return is completed accurately and that you claim any exemptions you are entitled to.

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