Changes to the Property Transfer Tax

You may or may not have heard, but there were changes announced for the Property Transfer Tax (PTT) yesterday. The PTT is a provincial tax paid by buyers when a property changes title (so when you purchase).

Since it's introduction in the late 80's, it has been calculated at:
1% on the first $200K and 2% on the balance of the purchase price.


First time home buyers are exempt from paying for homes up to $475K. There is a partial exemption between $475K and $500K.


Here is a quick summary of the changes:


1.    There are no changes to the first time home buyer exemption limits;

2.    All buyers (whether first time buyers or not) no longer pay PTT on purchases of NEW homes up to $750,000 in value; note the buyer must be a Canadian citizen or a permanent resident; there is a partial exemption for homes between $750,000.00 and $800,000.00;

3.    PTT has changed so that there is now a 3% tax on amounts over $2,000,000.00. The 3% tax is only paid on the amount over $2,000,000.00, not the full price.


So, great news if you are purchasing a newly built home (up to $750K), not so great news for those buying over $2M...and no change if you are buying a re-sale property.


In my opinion, much more could have been done, namely increasing the threshold from $200K for the 1% calculation to help the many buyers purchasing re-sale property.

Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.