In British Columbia, property transfer taxes, or land transfer taxes in other provinces, must be paid whenever a property is purchased or transferred to a new owner. This guide breaks down everything you need to know about Property transfer tax BC in 2025 – from tax rates and exemptions to the process for first-time homebuyers.
What is the BC Property Transfer Tax?
The BC Property Transfer Tax (PTT) is a tax levied by the provincial government whenever a property changes ownership in British Columbia. BC PTT was introduced in 1987 as a wealth tax to discourage real estate speculation. The tax rate was 1% on the first $200,000 of a property value and 2% above that. The tax has been modified several times since its inception, most notably with the introduction of the First-Time Home Buyers Program in the 1990s.
BC Property Transfer Tax applies to any transfer of interest in real property registered at the BC Land Title Office, including purchases, sales, gifts, transfers due to divorce, inheritance, adding or removing a name from a title, and more. It is calculated based on the property’s fair market value at the time of registration.
How is fair market value determined?
Fair market value is the price a given property would sell for in an open and unrestricted market between informed and willing parties. The sale price is generally accepted as fair market value for open market transactions, provided the deal closes shortly after the initial agreement and the property’s condition does not change substantially.
For non-open market deals, such as between family members, BC Assessment valuations or appraisals may be used to determine fair market value on the registration date. However, assessments reflect property values as of July 1 of the previous year and may not align with current values if market conditions change.
What are the BC Property Transfer Tax rates?
BC has a tiered, marginal tax system where each portion of a property’s fair market value is taxed at a different rate.
| Purchase Price | Marginal Tax Rate |
|---|---|
| Up to $200,000 | 1.0% |
| Over $200,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 3.0% |
There is also an additional property transfer tax of 2% charged on the portion of a residential property’s value exceeding $3 million. This brings the total rate on residential values above $3 million to 5%.
Additionally, foreign nationals and corporations purchasing residential real estate in certain regions of BC are subject to an additional property transfer tax:
- 15% if the property was registered before February 20, 2018
- 20% if the property was registered on or after February 20, 2018
For example, for a $1,000,000 residential property purchased by a BC resident, the tax would be calculated as follows:
- 1% on the first $200,000 = $2,000
- 2% on the next $800,000 = $16,000
- 3% on the remaining $0 = $0
- Total PTT = $18,000
BC Property Transfer Tax Exemptions
Certain homebuyers in BC can avoid paying the property transfer tax with the following exemptions.
Exemption for First-Time Home Buyers
Qualifying first-time homebuyers in BC receive an exemption on the first $500,000 of a property’s value. To be eligible, the buyer must:
- Be a Canadian citizen or permanent resident
- Have lived in BC for 12 consecutive months or filed 2 tax returns as a BC resident in the past 6 years
- Never have owned an interest in a residence anywhere in the world
- Never have received a first-time exemption or refund before
The purchased property must also be under 0.5 hectares and used as the buyer’s principal residence.
Find out if you’re eligible for Land Transfer Tax Rebate in different regions in Canada.
Exemption for Newly Built Homes
For newly constructed homes, a full PTT exemption applies on properties valued up to:
- $750,000 if registered before April 1, 2024
- $1,100,000 if registered after April 1, 2024
Partial exemptions are available on newly built homes priced between 750,000 and 800,000 before April 1, 2024, and 1,100,000 and 1,150,000 after.
Other BC PTT exemptions include:
- Purpose-built rental housing exemption on values over $3M
- Family exemptions (transfer of principal residence, family farm, etc.)
- Correction of conveyancing errors
- Transfer to a registered charity
When is the BC Property Transfer Tax due?
The PTT is due upon property transfer registration with BC’s Land Title Office. The buyer cannot take legal ownership until the tax is paid.
In most real estate transactions, a lawyer or notary public handles the registration and PTT payment on the buyer’s behalf. The buyer must provide their legal professional with cleared funds to cover the tax at least 1-2 days before the registration date.
Some transactions, like foreclosures, may be handled directly by the parties without a legal professional. In this case, the buyer would calculate the PTT and submit payment directly to the Land Title Office using the Property Transfer Tax Return form.
Explore the how different regions in Canada charge their Land Transfer Tax with our detailed guides:
- SK Land Title Transfer Fee
- Ontario Land Transfer Tax
- Toronto Land Transfer Tax
- Alberta Land Title Transfer Fee
FAQs Related to BC Property Transfer Tax
Can I defer paying the BC property transfer tax?
No, the PTT must be paid before the property can legally transfer ownership at registration. There is no option to defer payment.
How do I claim a BC PTT exemption?
Work with your real estate lawyer to complete the required PTT returns and supply supporting documents for exemptions like the first-time home buyer program.
Can I get a BC PTT refund as a foreign buyer?
Foreign buyers who become permanent residents within 1 year and occupy the home may qualify for a refund of the additional property transfer tax.
Does BC PTT apply to vacant land?
Yes, all transfers of land registered at the Land Title Office are subject to BC’s property transfer tax based on the land’s fair market value.
What if I overpaid BC PTT?
If you overpaid due to an error, you may apply for a refund within 1-18 months of the registration date by filing a Notice of Objection.
The Bottom Line
BC property transfer tax can represent a substantial cost for homebuyers, especially given the high real estate values across cities like Vancouver and Victoria. Understanding the rates, exemptions, and processes is essential for buyers to budget properly and avoid any negative surprises on closing day. For more information, contact our mortgage advisors today.
