PETE COOLIO REAL ESTATE
P.P.T. - PROPERTY TRANSFER TAX
The "PTT" and the "LTSA"
The Property Transfer Tax (PTT) is paid for by the buyer of a property, or more specifically, by one who is registering new title with the LTSA - (Land Title & Survey Authority) in British Columbia. It's not that complicated on the surface... if you don't qualify for an exemption, then upon the Completion Date of your property purchase, the buyer must pay the PTT upon registration of the title to the property. The sale cannot be completed until the PTT has been dealt with.
* Always seek professional advice before relying on anything you read online.
PTT for a Canadian citizen or Permanent resident: Unless you're among the lucky ones who qualifies for an exemption, you must pay the tax in full at the time of registration, (the Closing Date). PTT on the fair market value of your property will be:
1% on the first $200,000
2% on the balance up to $2,000,000
3% on the balance over $2,000,000
2% on the balance over $3,000,000 if this is a residential property
Yes, there are Exemptions! ...
First Time Home Buyers Property Transfer Tax Exemption: If you qualify for the First Time Home Buyer’s Exemption, then you just might qualify for a full refund!
You must be a Canadian citizen or permanent resident
You must have lived in BC for 12 consecutive months before the date the property is registered; or
You’ve filed 2 income tax returns as a BC resident in the last 6 years
You've never owned an interest in a principal residence... and this means anywhere or at any time
You cannot have have ever received a first time home buyers’ exemption or refund in any other real estate transaction
You have never been on title for any property owned by your spouse, (yes, you still may qualify as a first time home buyer if your spouse is not a first-time home buyer)
Your property qualifies for the exemption (keep reading)...
Your property qualifies for a full refund if:
Effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers Exemption program, qualifying first-time buyers can buy a home worth up to $475,000.
Partial exemptions are available between 475-500K… (scroll to chart below)
The land does not exceed 1.24 acres, (0.5 hectares)
The property will be used as your principal residence
You may qualify for a partial refund if:
The fair market value of the property is less than $525,000
The land is greater than 1.24 acres, (0.5 hectares)
The primary residence on the property may quality for an exemption if there are other buildings on the land used for commercial purposes, or other residential buildings that will not be used as your primary residence.
* Always seek professional advice before relying on anything you read online
New homes with a fair market value of up to $750,000 may qualify for an exemption. This could include a house newly constructed on vacant land, a new apartment in a newly construction building, a newly constructed manufactured home on vacant land, or other homes that have "newly built". There are also occupancy requirements: for instance, if you move out before the end of the first year, then you may still be able to keep part of the exemption. There's also a partial exemption for newly built properties with a fair market value of up to $800,000.
Vacant Land Property Transfer Tax Exemption
You may apply for a PTT refund if you registered a vacant lot but one of the following applies to you:
your newly constructed home is worth $750,000 or less;
you moved into the home and used it as your principal residence within one year of registering the property with the LTSA
and you are qualified Newly Built Home Exemption
Other PTT Exemptions may include:
transfer of a principal or recreational residence
transfer resulting from a divorce or breakdown in a marriage, or other elements involving the family law act
transfer of a family farm involving individuals
transfer of a family farm to or from a family farm corporation
FTHB Proportional Exemptions and Tax Amounts Payable On 100% Eligible FTHB
Purchase PriceExemption AmountTax Amount Payable
(* Ask a professional! Online advice is only a guide)
Purchase Price Exemption PTT Payable
$475,000.00 $7,500.00 0
$476,000.00 $7,219.20 $300.80
$477,000.00 $6,936.80 $603.20
$478,000.00 $6,652.80 $907.20
$479,000.00 $6,367.20 $1,212.80
$480,000.00 $6,080.00 $1,520.00
$481,000.00 $5,791.20 $1,828.80
$482,000.00 $5,500.00 $2,140.00
$483,000.00 $5,208.80 $2,451.20
$484,000.00 $4,915.20 $2,764.80
$485,000.00 $4,620.00 $3,080.00
$486,000.00 $4,323.20 $3,396.80
$487,000.00 $4,024.80 $3,715.20
$488,000.00 $3,724.80 $4,035.20
$489,000.00 $3,423.20 $4,356.80
$490,000.00 $3,120.00 $4,680.00
$491,000.00 $2,815.20 $5,004.80
$492,000.00 $2,508.80 $5,331.20
$493,000.00 $2,200.80 $5,659.20
$494,000.00 $1,891.20 $5,988.80
$495,000.00 $1,580.00 $6,320.00
$496,000.00 $1,267.20 $6,652.80
$497,000.00 $952.80 $6,987.20
$498,000.00 $636.80 $7,323.20
$499,000.00 $319.20 $7,660.80
$500,000.00 $0.00 $8,000.00
How Fair Market Value is determined: In most cases, the fair market value will simply turn out to be the purchase price of the property. If there's a situation in which NO money has changed hands, such as an inheritance, a change of ownership between joint tenancy and tenancy in common, a gifted property, or a transfer of property in the corporate realm, the fair market value will usually be based on the BC property assessment, which is available from the BC Assessment website: