Property Transfer Tax
Property Transfer Tax, sometimes called PPT, is a sales tax charged by the provincial government on all transfers of real estate in BC.
The PTT is determined as follows:
- 1% on the first $200,000 of the purchase price
- 2% on the purchase price between $200,000 and $2,000,000
- 3% on any portion of the price over $2,000,000
When GST applies to the purchase price, no property transfer tax is applicable to the GST.
Exemption for First Time Buyers
- Buyers purchasing their first home do not pay PTT on homes up to $475,000, but pay full PTT on homes with a purchase price over $500,000. There is a transitional tax on the amount between $475,000 and $500,000.
- If 2 people buy a home together and one is eligible for the first time buyer’s exemption and one is not, the PTT will be charged proportionately to their ownership share.
- Purchasers claiming the first time buyer’s exemption must live in the house for at least the first 12 months after buying.
Newly Built Home Exemption
- The newly built home exemption reduces or eliminates the amount of PTT a purchaser pays whether buying a newly built home or condominium.
- The buyer is not required to be a first time purchaser to qualify for this exemption.
- Purchasers buying a newly built home pay no PTT on homes below $750,000, but pay the full PTT on homes over $800,000. There is a transitional tax on the amount between $750,000 and $800,000.
- Anyone claiming this exemption must live in the home for at least the first year after purchase.
If you’re looking to buy real estate in the Comox Valley or you want to list your home for sale. Contact Janice Leffler today!