What Is the Property Transfer Tax?

The Property Transfer Tax (PTT) is a provincial tax charged every time ownership of real property in British Columbia changes hands. It is paid by the buyer at closing and is registered as part of the title transfer process. The PTT is separate from federal GST, which applies to newly built homes.

Rates are set by the BC provincial government and have evolved significantly since the tax was introduced in 1987. The current structure is tiered, with an additional tax on luxury properties.

Current PTT Rates in BC (2025)

• 1% on the first $200,000 of the fair market value

• 2% on the portion between $200,000 and $2,000,000

• 3% on the portion above $2,000,000

• An additional 2% on the portion above $3,000,000 for residential property (total 5% on that portion)

Example: a $900,000 home attracts PTT of: ($200,000 × 1%) + ($700,000 × 2%) = $2,000 + $14,000 = $16,000.

For a $3,500,000 property: ($200,000 × 1%) + ($1,800,000 × 2%) + ($1,000,000 × 3%) + ($500,000 × 2%) = $2,000 + $36,000 + $30,000 + $10,000 = $78,000.

First-Time Buyer PTT Exemption

First-time buyers who are Canadian citizens or permanent residents may qualify for a full exemption on purchases up to $835,000 (2024 threshold). A partial exemption applies for purchases between $835,000 and $860,000. Above $860,000, the full PTT applies with no exemption.

Eligibility rules: You must never have owned a principal residence anywhere in the world. You must be a Canadian citizen or permanent resident. You must intend to occupy the property as your principal residence within 92 days. The property must be less than 0.5 hectares. A BC resident who previously owned commercial property may still qualify for this exemption.

The saving on a $750,000 purchase is approximately $13,000 — a meaningful amount that underscores why confirming your eligibility with your conveyancing lawyer before subjects come off is critical.

Newly Built Home PTT Exemption

Buyers of newly built homes (including pre-sale condos registered for the first time) may qualify for a full PTT exemption on purchases up to $1,100,000, with a partial exemption up to $1,150,000 (2024 thresholds). This exemption is not restricted to first-time buyers — any buyer of a qualifying newly built home may apply.

The home must be used as a principal residence. New construction strata lots, modular homes affixed to land, and detached homes qualify. Assignment of a pre-sale contract where title has never been registered counts as a new home transfer.

Additional Property Transfer Tax (APTT) for Foreign Buyers

Foreign nationals and foreign-controlled corporations pay an Additional Property Transfer Tax of 20% of the fair market value on top of the standard PTT for residential property in designated areas of BC. Designated areas include the Capital Regional District, Metro Vancouver, Fraser Valley, Central Okanagan, and Nanaimo Regional District.

Canadian citizens, permanent residents, and BC Provincial Nominee Program nominees are exempt from the APTT. The APTT does not apply to commercial property.

How to Pay the PTT

Your conveyancing lawyer or notary calculates and remits the PTT to the BC government as part of the title registration process. You do not pay it separately — the amount is included in the funds your lawyer requests from you before closing.

The PTT is due on the registration date (completion date) and must be paid in full before title transfers. Late or short payments result in interest charges and registration delays.