What is property transfer tax in BC?
When you purchase or gain an interest in property registered at the Land Title Office, you must pay property transfer tax and also file a property transfer tax return.
So, taxable transactions include:
- Transfer of fee
- Right to purchase or agreement for sale
- Lease or lease modification agreements
- Life estate
BC also requires home buyers to pay a provincial property transfer tax when buying a home. Your tax rate depends on the value of your home and also falls into one of three categories. First of all, homes valued up to $200,000 have a tax rate of 1 percent. Then the tax is charged at 2 percent on the remainder of the price, over $200,000 and up to $2 million. Finally, the property transfer tax is 3 percent on amounts greater than $2 million.
Finally, the tax cost stems from the fair market value of the property (including land and improvements). You pay the tax at the registration date with the Land Title Office, unless you maybe qualify for an exemption or purchase a pre-sold strata unit.
Ask one of our experts to see if you qualify for exemptions or refunds as a result.