By Ray Francis, REALTOR®, Royal LePage In The Comox Valley
Property Transfer Tax is the biggest closing cost most British Columbia buyers face, and it surprises people relocating from provinces where land transfer taxes are smaller or rebated. Here is how it works, in plain terms.
The rates
- 1% on the first $200,000 of the purchase price
- 2% on the portion between $200,000 and $2,000,000
- 3% on the portion above $2,000,000
- a further 2% on the residential portion above $3,000,000
On a $750,000 Courtenay home that works out to $2,000 on the first $200,000 plus $11,000 on the remaining $550,000, for a total of $13,000, payable on completion day through your lawyer or notary.
First Time Home Buyers' Program
If you have never owned a principal residence anywhere in the world, are a Canadian citizen or permanent resident and have lived in BC for at least a year (or filed two BC tax returns in the last six years), you can qualify for an exemption. Under the rules in effect since April 2024, homes with a fair market value up to $835,000 get a full exemption on the first $500,000 of value, with a partial exemption phasing out by $860,000. The property has to be your principal residence for the first year.
Newly built home exemption
Buyers of a newly constructed home, including a new condo or a house on a newly subdivided lot, can be exempt on homes up to $1,100,000 with a partial exemption above that. Ask Ray whether a specific new build qualifies; the definition of "newly built" has details.
Other costs to budget
Legal fees, a home inspection, an appraisal if your lender requires one, title insurance, adjustments for property tax already paid by the seller, and GST on new construction. Ray's buyer guide walks through all of them, and the calculator on this site gives you the Property Transfer Tax figure in seconds. Confirm thresholds with the Province at the time you buy; they change with provincial budgets.