Property transfer tax (PTT) is one of the most significant closing costs when buying a home in British Columbia. Understanding how it works can help you budget accurately for your purchase.

The BC property transfer tax is calculated as follows: 1% on the first $200,000 of the property's fair market value, 2% on the portion between $200,000 and $2,000,000, and 3% on the portion over $2,000,000.

For example, on an $800,000 home: 1% × $200,000 = $2,000, plus 2% × $600,000 = $12,000, for a total PTT of $14,000.

First-time home buyers may qualify for a full exemption on properties up to $500,000, or a partial exemption on properties up to $835,000. To qualify, you must be a Canadian citizen or permanent resident, have lived in BC for at least one year, and have never owned a principal residence anywhere in the world.

The newly built home exemption provides a full exemption on qualifying new homes up to $750,000, or a partial exemption on new homes up to $1,125,000.

It's important to factor property transfer tax into your budget when planning a home purchase. Use our mortgage calculator to estimate your total upfront costs, including PTT.