How Does Property Transfer Tax Work When Buying in BC?
Property Transfer Tax is a provincial tax payable by the buyer on the transfer of real property in British Columbia. It is a significant closing cost that many buyers, especially those relocating from Alberta which has no equivalent, underestimate or overlook in their initial financial planning.
The PTT rate structure is: one percent on the first $200,000 of the fair market value, two percent on the portion between $200,000 and $2 million, and three percent on the portion above $2 million. For a typical Kamloops purchase at $650,000, this works out to approximately $11,000 in PTT.
There are important exemptions. The First Time Home Buyers' Program provides a full PTT exemption on purchases up to a specific threshold for buyers who meet the eligibility criteria. Eligible buyers must be Canadian citizens or permanent residents, have never owned a property used as a principal residence anywhere in the world, and intend to use the property as their principal residence within 92 days of registration.
Newly constructed homes may qualify for a partial or full PTT exemption under the Newly Built Home Exemption, which applies to new homes up to a specified fair market value.
PTT is payable at the time of completion and is registered against the title transfer. Your real estate lawyer will calculate the exact amount and include it in the statement of adjustments.
Budget for PTT from the beginning of your home search. Many buyers focus on down payment and mortgage costs without adequately accounting for closing costs, and PTT is typically the largest single closing cost in a BC residential transaction. The Kamloops Home Team walks every buyer through the full cost of their purchase so there are no surprises at the table.
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Kamloops Home Team | Royal LePage Westwin Realty
Top Royal LePage Team in Kamloops - 2024 & 2025 | 24 years combined experience helping buyers and sellers in Kamloops BC and surrounding communities.
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