Understanding the New 2016 Property Transfer Tax in BC 

Understanding the New 2016 Property Transfer Tax in BC 

PTT-1


Understanding the New 2016 Property Transfer Tax in BC

 

There have been a lot of questions regarding the recent changes to the Property Transfer Tax rules.
Here are the Top 5 questions about the PTT:

 

1. How is the Property Transfer Tax Charged?

  • 1% on the first $200,000
  • 2% on the balance up to and including $2,000,000 and
  • 3% on the balance greater than $2,000,000
For full details, rules and qualifications, here is the source: http://www2.gov.bc.ca/gov/content/taxes/propertytaxes/propertytransfertax/understand

 

2. What is the Newly Built Home BC Property Transfer Tax Exemption? 

For newly constructed homes, apartments, you can qualify for an exemption if the property is $750,000 or less.
You may qualify for a partial exemption if the property is more than $750,000 and less than $800,000.

 

3. Does this apply to Commercial Property Purchases? 

Yes, the new rules apply to residential and commercial property purchases in BC.

 

4. If I purchase a pre-owned $550K property (not new), do I still pay Property Transfer Tax

Yes, the new rules have not affected pre-owned property purchases. The $475,000 limit remains the same for the First Time Home Buyer property purchase. The current exemption values remain as they were.

 

5. Does the exemption include GST or pre-GST? 

To qualify for a full exemption the $750,000 limit is calculated on the net purchase price, excluding GST.

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