BC Property Transfer Tax (PTT): Rates, Exemptions and a Worked Example
What the Property Transfer Tax is
The Property Transfer Tax (PTT) is a BC provincial tax you pay when a property changes hands and the transfer is registered. It is charged on the property's fair market value and is paid by the buyer, on top of the purchase price — it is not included in the price you negotiate with the seller. For most buyers it is one of the largest closing costs, so it needs to be in your budget from the start, alongside the other items in our guide to closing costs in BC.
The rates
PTT is charged in slices, like income tax. You pay 1% on the first $200,000 of fair market value, 2% on the portion between $200,000 and $2,000,000, and 3% on anything above $2,000,000. On top of that, there is an additional 2% on the residential portion of a property priced above $3,000,000. Because each rate only applies to its own slice, the tax rises gradually — you never pay 3% on the whole price.
A worked example: a $900,000 home
Take a home bought for $900,000. The first slice is 1% of $200,000, which is $2,000. The rest — $700,000 — falls in the 2% slice, which is $14,000. Add them together and the PTT is $16,000. That $16,000 is due at registration, in addition to your down payment, so a buyer with a 20% down payment on this home needs $180,000 for the down payment plus $16,000 for PTT, before legal and other closing costs.
Exemptions and extra taxes to know about
Some buyers pay less or nothing. Qualifying first-time buyers can receive a full or partial PTT exemption: no tax on the first $500,000 of value — a saving of up to $8,000 — on homes up to $835,000, phasing out between $835,000 and $860,000. Newly built homes have a separate exemption of their own: a full exemption on homes up to $1,100,000, phasing out by $1,150,000. On the other side, an additional PTT applies to foreign buyers purchasing in specified areas of BC, on top of the regular tax. Exemption rules and thresholds change, so always confirm your situation against the current rules before you count on one.
A note before you rely on this
This article is general information only, not legal or financial advice. Tax rules and figures change — verify the current details at gov.bc.ca and canada.ca before you buy.
Frequently asked questions
Who pays the Property Transfer Tax in BC — the buyer or the seller?
The buyer pays it. It is calculated on the property's fair market value and is due when the transfer is registered, on top of the purchase price.
How much PTT is owing on a $900,000 home?
$16,000. That is 1% on the first $200,000 ($2,000) plus 2% on the remaining $700,000 ($14,000), assuming no exemption applies.
Do first-time buyers have to pay PTT in BC?
Not necessarily. Qualifying first-time buyers pay no PTT on the first $500,000 of value on homes up to $835,000 — a saving of up to $8,000 — and the exemption phases out by $860,000. Check the current rules at gov.bc.ca before you buy, because the rules change.
Is the PTT included in the purchase price or the mortgage?
No. PTT is an extra cost on top of the price, paid in cash at registration. It is one reason buyers are advised to budget roughly 1.5% to 4% of the price for closing costs overall.