Property Transfer Tax, sometimes called PPT, is a sales tax charged by the provincial government on all transfers of real estate in BC.
The PTT is determined as follows:
* 1% on the first $200,000 of the purchase price
* 2% on the purchase price between $200,000 and $2,000,000
* 3% on any portion of the price over $2,000,000
When GST applies to the purchase price, no property transfer tax is applicable to the GST.
Exemption for First Time Buyers
* Buyers purchasing their first home do not pay PTT on homes up to $475,000, but pay full PTT on homes with a purchase price over $500,000. There is a transitional tax on the amount between $475,000 and $500,000.
* If 2 people buy a home together and one is eligible for the first time buyer’s exemption and one is not, the PTT will be charged proportionately to their ownership share.
* Purchasers claiming the first time buyer’s exemption must live in the house for at least the first 12 months after buying.
Newly Built Home Exemption
* The newly built home exemption reduces or eliminates the amount of PTT a purchaser pays whether buying a newly built home or condominium.
* The buyer is not required to be a first time purchaser to qualify for this exemption.
* Purchasers buying a newly built home pay no PTT on homes below $750,000, but pay the full PTT on homes over $800,000. There is a transitional tax on the amount between $750,000 and $800,000.
* Anyone claiming this exemption must live in the home for at least the first year after purchase.