The government of BC recently announced a few changes to the property transfer tax rules. The changes are fairly simple. Below is a brief outline of the changes and current rules for payment of the property transfer tax in BC.

New homes – All buyers (whether first time buyers or not) no longer pay property transfer tax on purchases of brand new homes up to $750,000 in value. You must be a Canadian citizen or a permanent resident and the home must be owner occupied. There is a partial exemption for new homes between $750,000 and $800,000.

Used homes – There are no changes to the first time home buyer exemption limits for used homes. If you are purchasing a used home that you will live in and have never owned a home anywhere in world then you are most likely exempt from paying the property transfer tax. The price of the home must be less than $475,000. There is a partial exemption on the tax on prices between $475,000 and $500,000. If the price is over $500,000 then the full tax is payable regardless of whether you are a first time home buyer or not. The property transfer tax rate is 1% of the first $200,000 and 2% of the rest of the price.

High end homes – The property transfer tax has changed so that there is now a 3% tax on amounts over $2,000,000. The 3% tax is only paid on the amount over $2,000,000 and not the full price.

As always, you should check with your lawyer or notary to confirm the tax applicable for your particular situation.

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