What Is Property Transfer Tax ?
I get asked often about BC’s Property Transfer Tax and how it applies to Chilliwack Real Estate. Here’s a quick breakdown.
Property Transfer Tax – What is it? Property Transfer Tax (PTT) is a British Columbia tax on the sale or transfer of ownership of any residential real estate property within the Province of Britsh Columbia.
So How Much do you have to pay?
The property transfer tax rate is:
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
- 3% on the portion of the fair market value greater than $2,000,000
For instance:
If the purchase price of property you purchase is $600,000, the total Property Transfer Tax (PTT) Payable is $10,000
When is Property Transfer Tax (PTT) Paid ?
Property Transfer Tax is paid on the Completion Date when the title to the property is transferred to the Buyer and the Seller receives their money.
Does everyone have to pay PTT ?
The answer to this question is “YES” All Buyers, EXCEPT of course First time home buyers who meet the following criteria:
- Never received a first time home buyers’ exemption or refund.
- Lived in British Columbia for 12 consecutive months immediately before the date registration of the property, or have filed 2 income tax returns as a British Columbia resident during the 6 years before the date the property is registered
- Canadian Citizens or Permanent Residents determined by Immigration Canada.
- Lived in British Columbia for 12 consecutive months immediately before the date registration of the property, or have filed 2 income tax returns as a British Columbia resident during the 6 years before the date the property is registered
- Never owned property or an interest in a principal residence anywhere in the world at anytime
- The fair market value (FMV) of the property is less than $475,000. More info on this please click the link : Fair Market Value
- The Lot has to be 0.5 hectares (1.24 acres) or smaller, and
- The property can only be used as a principal residence.
Partial exemption may be given if the property meets some these criteria.
You may be thinking…How is PTT paid?
The lawyer or notary that is working with you to transfer ownership of the property will apply and organize the required documents for you to sign.
If you have any questions regarding BC’s Property Transfer Tax or the Chilliwack Real Estate Market please feel free to reach out anytime.
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Honestly if you are moving or relocating here to Chilliwack, Fraser Valley or Vancouver areas we can make that transition so much easier on you!!
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Chris McRae – McRae Real Estate Group – Top Rated Chilliwack Real Estate Agent
Chris McRae Personal Real Estate Corporation
Homelife Advantage Realty Ltd
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