Property Transfer Tax

What is the Property Transfer Tax

When you purchase or gain an interest in property that is registered at the Land Title Office, you're responsible for paying property transfer tax and filing a property transfer tax return.

In most cases, property transfers are completed by a legal professional.

Taxable transactions include:

transfer of fee simple
right to purchase or agreement for sale
lease or lease modification agreements
life estate
foreclosure
Crown grant
escheat, forfeiture or quit claim
transfer as a result of corporate reorganization

You pay the tax based on the fair market value of the property (land and improvements) at the date of registration with the Land Title Office, unless you qualify for an exemption or purchase a pre-sold strata unit.

If you’re a foreign national, foreign corporation or taxable trustee, you also pay the additional property transfer tax on residential property transfers within specified areas of B.C.

Property transfers are routinely audited. If an audit determines you owe tax, you will receive a notice of assessment. You need to pay the balance shown on the notice to avoid additional interest.

If you disagree with the notice of assessment, you can file an appeal.

Property transfer tax should not be confused with annual property taxes. Annual property taxes are paid yearly for each property you own or have a registered interest in to fund services in your area.

Tax Rates

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, and
If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).

If the property is classified as residential and farm, or is residential mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property.

Estimate Tax Payable

Use the property transfer tax calculator to estimate the tax you owe based on the fair market value of your property.

Note: The calculator doesn't calculate the further 2% tax on residential property greater than $3,000,000 or the additional property transfer tax on residential property transfers to foreign entities or taxable trustees. Use our Property Transfer Tax Calculator for Residential Property over $3,000,000 (PDF) to help you determine the tax amount owing.

Calculation Examples

Example 1 - Fair market value is $650,000 (expand)

If the fair market value of a property is $650,000, the tax paid is $11,000.

1% on the first $200,000 = $2,000
2% on the remaining $450,000 = $9,000
$2,000 + $9,000 = $11,000

Example 2 - Fair market value is $4,500,000 (expand)

If the fair market value of a property classified entirely as residential is $4,500,000, the tax paid is $143,000.

1% on the first $200,000 = $2,000
2% on the portion greater than $200,000 and up to and including $2,000,000 = $36,000 ($2,000,000 - $200,000 = $1,800,000 X 2% = $36,000)
3% on the portion greater than $2,000,000 = $75,000 ($4,500,000 - $2,000,000 = $2,500,000 X 3% = $75,000)
A further 2% on the portion greater than $3,000,000 = $30,000 ($4,500,000 - $3,000,000 = $1,500,000 X 2% = $30,000)
$2,000 + $36,000 + $75,000 + $30,000 = $143,000

Get In Touch

Kiarash Kalhor

Mobile: 604-880-1265

Phone: 604-266-8989

Fax: 604-266-8829

EMAIL

Office Info

Royal Pacific Realty Group

1200 W 73rd Ave Unit 100, Vancouver, BC V6P 6G5