Property Transfer Tax in BC: Rates, Exemptions and When It Is Paid

Property transfer tax is one of the largest closing costs on a BC home purchase, and it is due in full on the day your transfer is registered.

This guide sets out the current rates with worked examples, explains when and how the tax is paid, and outlines the main groups of exemptions and the traps that catch buyers out.

What property transfer tax is and who pays it

Property transfer tax (PTT) is a provincial tax charged when an interest in land is registered at the Land Title Office. Under section 2 of the Property Transfer Tax Act, the person acquiring the interest, the transferee, must pay the tax and file a return when applying to register the transfer. The return is required whether or not the transfer is exempt, and a registrar can refuse to accept the registration if the tax has not been paid or the return has not been filed.

The tax is calculated on the fair market value of the land and improvements on the date of registration. For an ordinary sale on the open market, the Province generally treats the purchase price as the main indicator of that value. For transfers that do not happen on the open market, such as a transfer within a family, the value has to be supported in another way, for example by an appraisal.

The rates

Section 3 of the Act sets the general rate as the sum of:

• 1% of the fair market value up to $200,000;
• 2% of the value over $200,000 and up to $2,000,000; and
• 3% of the value over $2,000,000.

Section 3.01 adds a further 2% on the value of residential property above $3,000,000. On a mixed-use property, that further tax applies only to the residential portion.

Two worked examples

Example only: on a $1,200,000 home, the tax is $2,000 (1% of the first $200,000) plus $20,000 (2% of the next $1,000,000), for $22,000. On a $3,500,000 home that is entirely residential, it is $2,000 plus $36,000 plus $45,000 (3% of the $1,500,000 above $2,000,000) plus $10,000 (the further 2% on the $500,000 above $3,000,000), for $93,000.

Additional tax for foreign entities and taxable trustees

Section 2.02 imposes an additional tax when a foreign national, foreign corporation or taxable trustee acquires residential property in a specified area. The Property Transfer Tax Regulation sets the rate at 20%. The specified areas are Metro Vancouver, the Capital Regional District, the Fraser Valley Regional District, the Regional District of Central Okanagan and the Regional District of Nanaimo. The tax applies to the transferee's proportionate share of the residential value, and it is paid in addition to the general tax.

When PTT is paid, and who handles it

On a purchase, your lawyer or notary prepares the electronic return, collects the tax from you before completion and pays it when the transfer is submitted for registration. That means the tax has to be in hand on completion day, alongside your down payment and other closing costs. Our guide to closing costs in BC shows how PTT fits into the overall budget.

Because the tax is due at registration, the exemption you claim has to be identified and documented in the return at the same time. Getting it right then is far easier than seeking a refund or responding to an audit later.

The main exemption families

The Act contains dozens of exemptions. Most transactions that qualify fall into a handful of groups, and each has its own conditions:

• First-time home buyers. Section 5 exempts a qualifying first-time buyer from the general tax on up to $500,000 of fair market value, with the exemption shrinking and then ending as the value rises above a qualifying value. See our article on first-time home buyer programs in BC.
• Newly built homes. A separate new housing exemption in sections 12.01 to 12.08 applies to qualifying new homes, with its own conditions. You cannot claim both it and the first-time buyer exemption on the same transaction.
• Family transfers. Section 14(3) exempts several transfers between related individuals, including a principal residence where the transferor or transferee has lived for at least six months, and transfers from an estate to a related beneficiary. We cover these in detail in transferring property to a family member in BC.
• Separation. A transfer to a spouse or former spouse made under a written separation agreement or a court order under the Family Law Act is exempt.
• Death of an owner. A transfer to a surviving joint tenant, and a transfer to an executor or administrator of land that forms part of the estate, are exempt.
• Other groups. These include certain transfers to registered charities, changes from joint tenancy to equal tenancy in common among the same owners, and a purpose-built rental exemption.

Some exemptions carry obligations after registration. Under section 8, for example, a first-time buyer must generally move in within 92 days of registration and live there as a principal residence until at least the first anniversary. If conditions like these are not met, the tax can become payable.

Common traps

• Buying in stages. If you register more than one transfer of the same land within six months, or related individuals do, section 3 can require the tax to be calculated as if it were one transaction.
• Non-market value. A low price between family members does not set the value. The tax follows fair market value.
• Exempt does not mean no return. A return must still be filed for an exempt transfer.
• Foreign entity rules. Some exemptions from the general tax, including the surviving joint tenant exemption, do not remove the additional tax.

Check for Budget changes

The Province reviews property taxes in each February budget. Budget 2026, announced on February 17, 2026, made a minor change to the conditions of the purpose-built rental exemption; the general rates and the further 2% above $3,000,000 in the Act are unchanged. Rates and thresholds can change, so check them for the year you complete.

Buying or transferring property? Get the PTT right before registration

Our real estate lawyers can calculate the tax on your purchase or transfer, check which exemptions you may qualify for and their conditions, and file the return and pay the tax at registration.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.