BC Property Transfer Tax: Rates, Exemptions and Examples

Property transfer tax (PTT) is a one-time BC tax you pay when a property is registered in your name at the Land Title Office. On a typical purchase it is 1% of the first $200,000, 2% of the portion up to $2,000,000 and 3% above that, with a further 2% on residential value over $3,000,000. First-time buyers and buyers of newly built homes can reduce it or pay nothing. This guide shows the rates, the exemptions and worked examples, and you can run your own numbers in our property transfer tax calculator.

What property transfer tax is and when you pay it

Property transfer tax is charged by the Province of British Columbia whenever you buy or gain an interest in a property that is registered at the Land Title Office. It is not part of your annual property tax bill. It is a closing cost, due when the transfer is registered, and in practice your lawyer or notary files the property transfer tax return and pays the tax on completion day out of the funds you bring in.

The tax is based on the fair market value of the property on the date of registration. In an arm's length sale on the open market, fair market value is usually the purchase price. That is why most buyers simply apply the rates to the price on their contract.

Because the money has to be in your lawyer's trust account before completion, PTT belongs in your budget from the first day you start looking. A buyer who has saved a down payment but forgot the transfer tax can find themselves short at the worst possible moment.

BC property transfer tax rates

The general rates are set out by the Province and apply in tiers, the same way income tax brackets work. Each rate only applies to the slice of the value inside its band.

Portion of fair market value	Rate
Up to and including $200,000	1%
Over $200,000 up to and including $2,000,000	2%
Over $2,000,000	3%
Further tax on residential value over $3,000,000	2% more

The further 2% applies only to residential property. If a property is mixed class, for example a building with a store on the ground floor and suites above, the further 2% is charged on the residential portion only. Commercial and industrial property pays the general rates.

Worked examples at common price points

These are illustrative examples calculated with the published rates. They assume the price equals fair market value and that no exemption applies unless stated.

$800,000 resale home: 1% of $200,000 is $2,000, plus 2% of $600,000 is $12,000. Total PTT: $14,000.
$1,300,000 detached home: $2,000 plus 2% of $1,100,000 ($22,000). Total PTT: $24,000.
$2,500,000 home: $2,000, plus 2% of $1,800,000 ($36,000), plus 3% of $500,000 ($15,000). Total PTT: $53,000.
$3,500,000 residential property: $2,000 plus $36,000 plus 3% of $1,500,000 ($45,000) comes to $83,000. The further 2% on the $500,000 above $3,000,000 adds $10,000. Total PTT: $93,000.
$4,000,000 commercial plaza: $2,000 plus $36,000 plus 3% of $2,000,000 ($60,000). Total PTT: $98,000, with no further residential tax.

On larger commercial purchases, such as the commercial plazas our team buys and sells across BC, PTT is a meaningful line in the closing budget and should be part of any return calculation from the start.

The first time home buyers' exemption

If you have never owned a principal residence anywhere in the world, you may not have to pay PTT on the first $500,000 of the price. Since April 1, 2024, the rules published by the Province are:

Full exemption if the fair market value is $835,000 or less. The exemption covers the tax on the first $500,000, which works out to a maximum of $8,000.
Partial exemption if the fair market value is more than $835,000 and less than $860,000. The $8,000 is reduced proportionally and reaches zero at $860,000.
No exemption at $860,000 or more.

To qualify at the time of registration you must be a Canadian citizen or permanent resident, and you must have lived in BC for at least one year immediately before registration or filed at least two income tax returns as a BC resident in the last six tax years. You must never have owned a registered interest in a principal residence anywhere in the world, and never received this exemption before. The home has to be your principal residence, the land can be no more than 0.5 hectares (1.24 acres), and it can only contain residential improvements.

Examples: a qualifying first-time buyer paying $650,000 would owe $11,000 before the exemption and $3,000 after it, which matches the example the Province publishes. At $800,000 the tax falls from $14,000 to $6,000. At $845,000 the tax is $14,900; the exemption shrinks to $4,800, leaving $10,100 to pay.

If you buy with someone who does not qualify, the exemption is reduced to the share of the property that qualifies. Two buyers taking 50% each, where only one is a first-time buyer, get half the exemption.

The newly built home exemption

Buyers of a newly built home that will be their principal residence can be exempt from PTT whether or not they have owned before. Since April 1, 2024:

Full exemption on a newly built home with a fair market value of $1,100,000 or less.
Partial exemption between $1,100,000 and $1,150,000, phased out across that $50,000 range.
No exemption at $1,150,000 or more.

The Province's formula for the partial range is the tax multiplied by ($1,150,000 minus the fair market value) divided by $50,000. On a $1,125,000 new home the tax is $20,500, half of it is exempt, and $10,250 is payable. A $1,000,000 new townhome that qualifies would have $18,000 of PTT fully exempted.

You must be a Canadian citizen or permanent resident, the lot can be no more than 0.5 hectares, and you must move in within 92 days of registration and keep the home as your principal residence for the rest of the first year. If you move out early, some or all of the exemption can be clawed back.

You cannot claim both the first time home buyers' exemption and the newly built home exemption on the same purchase. The first time exemption is capped at $8,000, while the newly built exemption can remove the whole tax up to $1,100,000, so a first-time buyer of a qualifying new home usually comes out ahead with the newly built exemption. Confirm which one fits before your lawyer files.

Common questions we hear from buyers

Is PTT added to my mortgage? Not usually. Lenders generally expect closing costs, including PTT, to come from your own funds, separate from your down payment. Plan for it in cash.

Does a presale purchase pay PTT? Yes, when the finished home is registered in your name. If it qualifies, the newly built home exemption is often what applies to presale buyers who will live in the home.

What about foreign buyers? Foreign entities and taxable trustees are not eligible for the first time or newly built exemptions, and other provincial and federal rules may apply. Get legal advice before you write an offer.

How PTT fits into your full closing budget

PTT is often the biggest closing cost, but it is not the only one. Legal or notary fees, title insurance, adjustments for property tax the seller already paid, strata fees, a home inspection and moving costs all come due around the same time. GST can apply on a new home as well. When we prepare buyers for an offer on homes for sale in Surrey or in White Rock, we walk through every one of these lines so the numbers on completion day hold no surprises.

If you are also selling, a home valuation from our team helps you see how much equity you will carry into the next purchase, and therefore how much of the PTT and other costs you can cover comfortably.

Frequently asked questions

How much is property transfer tax in BC?

The general rate is 1% on the first $200,000 of fair market value, 2% on the portion up to $2,000,000 and 3% above $2,000,000. Residential property over $3,000,000 pays a further 2% on the value above $3,000,000. On an $800,000 home with no exemption, the tax is $14,000.

Who pays property transfer tax in BC?

The buyer pays it, when the property is registered in their name at the Land Title Office. Your lawyer or notary usually files the return and pays the tax on completion day from the funds you provide.

Do first-time buyers pay property transfer tax in BC?

Qualifying first-time buyers pay no tax on the first $500,000 of a home worth up to $835,000, a saving of up to $8,000. The exemption is reduced between $835,000 and $860,000 and ends at $860,000.

Is a new home exempt from property transfer tax?

A newly built home that will be your principal residence can be fully exempt up to a fair market value of $1,100,000, with a partial exemption up to $1,150,000. You must be a Canadian citizen or permanent resident and move in within 92 days of registration.

Can I add property transfer tax to my mortgage?

Lenders generally expect closing costs, including property transfer tax, to come from your own funds. Budget for it in cash on top of your down payment.

Can I claim the first-time and newly built exemptions together?

No. You can claim only one of them on the same purchase. On a qualifying new home, the newly built exemption is usually worth more.

Sources

Rates, thresholds and program rules in this article were checked against these official pages on October 9, 2026. Rules change, so confirm current details before you act.

Property Transfer Tax in BC: Rates, Exemptions and Examples