Costs, Comparisons and 2026 Rules
BC property transfer tax in 2026: rates, first-time buyer and new home exemptions
How British Columbia's property transfer tax is calculated, who qualifies for the first-time buyer and newly built home exemptions, and worked examples at common prices.
British Columbia's property transfer tax (PTT) is charged on the fair market value of a property when the transfer is registered: 1% on the first $200,000, 2% from $200,000 to $2,000,000, 3% above $2,000,000, plus a further 2% on the residential part above $3,000,000. An $800,000 home costs $14,000 in PTT. A qualifying first-time buyer pays no tax on the first $500,000 if the home is worth $835,000 or less (partial relief up to $860,000), and a Canadian citizen or permanent resident buying a newly built home worth up to $1,100,000 can be fully exempt.
This guide is part of Costs, Comparisons and 2026 Rules. For the other provinces see land transfer tax by province.
The PTT rates
| Fair market value slice | Rate | Tax on the full slice |
|---|---|---|
| First $200,000 | 1% | $2,000 |
| $200,000 to $2,000,000 | 2% | $36,000 |
| Above $2,000,000 | 3% | — |
| Residential part above $3,000,000 | additional 2% (5% in total) | — |
Shortcut for homes between $200,000 and $2,000,000: PTT = value x 2% - $2,000. A $1,250,000 townhouse: $25,000 - $2,000 = $23,000.
PTT is based on fair market value, not just the price you agreed. In a normal arm's-length sale they are the same, but for a transfer between relatives at a reduced price, the tax is on market value unless an exemption applies.
First-time home buyers' exemption
Since 1 April 2024 the thresholds are:
| Fair market value | Exemption |
|---|---|
| $835,000 or less | Full exemption on the first $500,000 (saves up to $8,000) |
| Over $835,000 and under $860,000 | Partial exemption, falling to zero |
| $860,000 or more | No exemption |
To qualify, you must:
- be a Canadian citizen or permanent resident when the transfer is registered;
- have lived in BC for at least 12 consecutive months immediately before registration, or have filed at least two BC resident income tax returns in the six years before;
- never have owned an interest in a principal residence anywhere in the world;
- never have received a BC first-time buyer exemption or refund;
- use the property only as your principal residence, on land of 0.5 hectares or less (larger lots or extra buildings get partial relief).
You must move in within 92 days of registration and live there until the first anniversary. Moving out early reduces the exemption, and a false claim carries a penalty equal to the amount claimed on top of repaying it.
Example (illustrative). First-time buyer, $780,000 condo. PTT = $780,000 x 2% - $2,000 = $13,600. Exempt amount: tax on the first $500,000 = $2,000 + 2% x $300,000 = $8,000. Payable = $5,600.
Newly built home exemption
For title registered on or after 1 April 2024:
| Fair market value | Exemption |
|---|---|
| $1,100,000 or less | Full exemption |
| $1,100,000 to $1,150,000 | Partial |
| $1,150,000 or more | None |
The buyer must be a Canadian citizen or permanent resident, it must be the first registration of the property with a completed home, and the home must be the buyer's principal residence (move in within 92 days, live there for a year). Unlike the first-time buyer exemption, you do not need to be a first-time buyer.
Example (illustrative). A family selling a resale house buys a new $1,050,000 townhouse in Surrey. Without the exemption, PTT would be $19,000. With it: $0. If the same family bought a $1,050,000 resale townhouse, they would pay the full $19,000.
Combine this with the federal first-time buyer GST rebate if you also qualify: a first-time buyer of a new home up to $1,000,000 in BC may pay neither PTT nor GST.
Other BC taxes that affect buyers and sellers
| Tax | Who it hits | Key point |
|---|---|---|
| Additional property transfer tax | Foreign nationals, foreign corporations and taxable trustees buying residential property in specified areas | Charged on top of the general PTT |
| BC home flipping tax | Sellers of residential property owned less than 730 days, from 1 January 2025 | 20% of net taxable income if sold within 365 days, declining to zero at 730 days; up to $20,000 deduction for a principal residence held at least 365 days |
| Speculation and vacancy tax | Owners of homes left vacant in designated areas | Annual declaration required; see the BC government |
| Federal residential property flipping rule | Anyone selling a home owned less than 12 months | Profit taxed as business income unless a life event applies |
Sellers should read tax rules when you sell a home. Buyers who are not Canadian citizens or permanent residents should read foreign buyer ban and non-resident taxes.
How PTT is paid
Your lawyer or BC notary public files the property transfer tax return electronically with the Land Title and Survey Authority when the transfer is registered, claims any exemption by code on that return, and pays the tax from your funds. If you were eligible but did not claim, contact the PTT office about a refund.
BC also gives buyers of most residential property a home buyer rescission period of three business days after acceptance of an offer. A buyer who withdraws pays a fee of 0.25% of the price to the seller, which on a $900,000 home is $2,250.
Frequently asked questions
Do I pay PTT on a presale condo assignment?
An assignment is not a registered transfer in itself, but the buyer who finally takes title pays PTT on registration. Assignments are also caught by BC's flipping tax and reporting rules. Ask a lawyer.
Can a couple where only one partner is a first-time buyer get the exemption?
The eligible partner can generally claim a proportionate exemption based on their share of ownership. Confirm with the PTT office or your lawyer.
Is PTT charged on the land and the building?
Yes, on the fair market value of the whole property. Separate rules apply to mixed residential and commercial property.
Does the exemption apply if I rent the suite in my house?
The home must be your principal residence. Renting part of it may affect the claim; check the conditions or ask the PTT office before you buy.
Sources
- Government of British Columbia: property transfer tax — rates, exemptions, foreign buyer tax
- BC home flipping tax — rates and deductions
- LTSA — land title registration
- BC Financial Services Authority — home buyer rescission period
- Society of Notaries Public of BC — find a notary
