What is PTT?
The Property Transfer Tax (PTT) is a land registration tax charged by the B.C. government on all transfers of real estate in the province that are registered at the Land Title and Survey Authority (LTSA).
The amount of tax you are required to pay is based on the fair market value of the property at the date of registration, unless you qualify for an exemption (see next section).
The PTT is charged on the fair market value of a property at a rate of:
- 1% on the first $200,000
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000
- 3% on the portion of the fair market value greater than $2,000,000
- Effective August 2, 2016, if you are a foreign national or a foreign corporation and the residential property is in Metro Vancouver, you also pay an additional property transfer tax of 15% on the fair market value of your proportionate share.
Do I qualify for an exemption from PTT?
You may qualify for an exemption from Property Transfer Tax if:
You are purchasing your first home. According to the First Time Home Buyers’ Program (FTHB) you are exempt provided that you:
· are a Canadian citizen or permanent resident;
· have lived in BC for 12 consecutive months before the date the property is registered;
· have filed two income tax returns as a BC resident in the last six years;
· have never owned an interest in a principal residence anywhere, anytime; and
· have never received a first time home buyers’ exemption or refund.
You are purchasing a newly built home with a fair market value of up to $750,000. This includes house construction on vacant land, a new apartment in a newly built condominium building, or a manufactured home on vacant land.
If you have any questions, please contact us at Silver Law at (604) 986-2522.