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Taxes & Costs

Property Transfer Tax (PTT)

A provincial tax paid on the purchase or acquisition of an interest in property in BC. Rates: 1% on the first $200,000 of fair market value; 2% on the portion above $200,000 up to $2,000,000; 3% on the portion above $2,000,000 up to $3,000,000; plus an additional 2% (5% total) on the residential portion above $3,000,000. First-time buyers may qualify for a full exemption up to $835,000 (partial up to $860,000). Newly built homes may qualify for a full exemption up to $1,100,000 (partial up to $1,150,000). Verified April 2026.

Frequently Asked Questions

What is the Property Transfer Tax (PTT) and who is required to pay it in British Columbia?

The Property Transfer Tax is a provincial tax levied under the BC Property Transfer Tax Act on the purchase or acquisition of an interest in real property located in British Columbia. It is generally payable by the transferee (buyer) at the time the title transfer is registered with the Land Title Office. The tax applies to most acquisitions of a registered interest in land, including purchases, gifts, and certain lease arrangements that meet the threshold criteria.

Verify with: BC Government
How is PTT calculated on a property purchase in BC?

Under the BC Property Transfer Tax Act, PTT is calculated on the fair market value of the property using a tiered rate structure: 1% on the first $200,000, 2% on the portion from $200,001 up to $2,000,000, 3% on the portion from $2,000,001 up to $3,000,000, and an additional 2% (for a combined 5%) on the residential portion of fair market value exceeding $3,000,000. For example, a home purchased at $900,000 would attract $16,000 in PTT: $2,000 on the first $200,000 plus $14,000 on the remaining $700,000.

Verify with: BC Government
What is the First-Time Home Buyers' Program PTT exemption and what are the current thresholds?

Under the BC Property Transfer Tax Act, eligible first-time buyers may qualify for a full PTT exemption on properties with a fair market value up to $835,000, with a partial exemption available for properties valued between $835,001 and $860,000. To qualify, the buyer must be a Canadian citizen or permanent resident, must never have previously owned a principal residence anywhere in the world, must occupy the property as their principal residence within 92 days of registration, and the property must be 0.5 hectares or smaller.

Verify with: BC Government
Is there a PTT exemption for newly built homes in BC, and how does it work?

Yes, under the BC Property Transfer Tax Act, the Newly Built Home Exemption provides a full PTT exemption for eligible newly constructed or subdivided residential properties with a fair market value up to $1,100,000, and a partial exemption for properties valued between $1,100,001 and $1,150,000. The buyer must be an individual who is a Canadian citizen or permanent resident and must occupy the property as their principal residence within 92 days of registration; the exemption is not restricted to first-time buyers.

Verify with: BC Government
Can a first-time buyer in BC stack both the First-Time Home Buyers' exemption and the Newly Built Home Exemption?

No, a buyer may only claim one PTT exemption per transaction under the BC Property Transfer Tax Act — they cannot stack the First-Time Home Buyers' Program exemption and the Newly Built Home Exemption on the same purchase. However, a first-time buyer purchasing a newly built home may choose whichever exemption provides the greater benefit; in most cases the Newly Built Home Exemption will be more advantageous because its full-exemption threshold of $1,100,000 is higher than the First-Time Home Buyers' threshold of $835,000.

Verify with: BC Government
Does PTT apply to the purchase of a strata lot in a BC strata corporation?

Yes, the purchase of a strata lot — a separately titled unit within a strata corporation governed by the Strata Property Act (SBC 1998, c. 43) — is subject to PTT under the BC Property Transfer Tax Act in the same way as any other registered interest in land. The PTT is calculated on the fair market value of the strata lot, and the same tiered rates and exemptions (such as the First-Time Home Buyers' or Newly Built Home Exemption) apply, provided all eligibility criteria are met.

Verify with: BC Government
What is the Additional Property Transfer Tax and who must pay it in BC?

The BC Property Transfer Tax Act imposes an Additional Property Transfer Tax (commonly called the Foreign Buyer Tax) on certain transfers of residential property to foreign nationals, foreign corporations, and taxable trustees in specified regions of British Columbia, including Metro Vancouver, the Capital Regional District, the Fraser Valley, and others designated by regulation. As of 2026, buyers should consult the BC Ministry of Finance or a qualified legal professional for the current rate and the exact regions to which this additional tax applies, as these details are subject to legislative amendment.

Verify with: BC Government
When and how is PTT paid during a BC real estate transaction?

PTT is due at the time the transfer of title is registered at the Land Title Office in British Columbia, and it is typically remitted by the buyer's notary public or lawyer as part of the closing process. The transferee must complete a Property Transfer Tax Return, which is filed electronically through the BC Land Title and Survey Authority's system at the time of registration. Failure to pay the correct amount of PTT can result in the Land Title Office refusing registration or the BC Ministry of Finance subsequently assessing penalties and interest.

Verify with: BC Government
Is PTT payable when property is transferred as part of an estate in BC?

Certain transfers of property that occur as a result of death may qualify for a PTT exemption under the BC Property Transfer Tax Act, such as transfers to a surviving joint tenant or transfers to a beneficiary pursuant to a will or intestacy under the Wills, Estates and Succession Act (WESA). However, not all estate-related transfers are automatically exempt, and the specific circumstances of the transfer — including whether the transferee is an eligible individual and the nature of the interest being transferred — determine whether the exemption applies; legal advice is recommended for estate-related title transfers.

Verify with: BC Government
Does purchasing farmland in the Agricultural Land Reserve (ALR) affect PTT obligations in BC?

The acquisition of farmland located within the Agricultural Land Reserve — administered by the Agricultural Land Commission under the Agricultural Land Commission Act (SBC 2002, c. 36) — is still subject to PTT under the BC Property Transfer Tax Act, because ALR status does not itself create a PTT exemption. A separate Farm Classification exemption may reduce PTT in limited circumstances for qualifying farm properties, but buyers should confirm current eligibility criteria with the BC Ministry of Finance, as conditions around active farming use and other requirements apply.

Verify with: BC Government
Authoritative Sources

Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority:

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Doug LeMaire, REALTOR®
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Doug LeMaire, REALTOR®
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