Real estate law
PTT is the BC tax payable when title to real property changes. It is the single largest closing cost most buyers face, and the rules around exemptions are narrow enough that mistakes are common. Here is how the brackets work, who qualifies for relief, and what we do on every file.
The brackets
On a residential purchase in BC, PTT is calculated in brackets on the fair market value of the property:
Worked example
On a $1,500,000 residential purchase with no exemption: 1% × $200,000 = $2,000, plus 2% × $1,300,000 = $26,000. Total PTT: $28,000.
On a $3,500,000 residential purchase: 1% × $200,000 + 2% × $1,800,000 + 3% × $1,000,000 + 5% × $500,000 = $2,000 + $36,000 + $30,000 + $25,000. Total PTT: $93,000.
Exemptions
BC offers a handful of PTT exemptions. Each one is tightly defined: the rules on residency, ownership history, intended use, and price thresholds matter, and we confirm qualification on every file.
Full exemption up to a price threshold, partial exemption in a phase-out band above that, and no relief above the phase-out limit. Eligibility requires Canadian citizenship or permanent residency, BC residency or income-tax history, no prior principal residence ownership anywhere in the world, and an intent to occupy the property within a defined window. The Province updates the thresholds from time to time; we apply the current numbers at closing.
Full exemption on qualifying newly constructed homes up to a price threshold, partial above that. The property must be a principal residence and the buyer must meet residency requirements. New construction includes single-family homes, certain townhouses and condos, and qualifying substantially-renovated properties.
Several narrow family-transfer exemptions: between spouses, from a parent to a child where the property is the child's principal residence, on a transfer under a will or by intestacy. The documentation requirements are specific and the relationships have to fit the statutory definitions.
There are additional exemptions for transfers involving trustees, marital separation, certain corporate reorganisations, charitable transfers, and transfers in connection with a survivorship right. These are narrower and more file-specific. We work through them on a case-by-case basis.
Additional PTT
BC's Additional Property Transfer Tax adds 20% PTT on certain residential purchases by foreign nationals, foreign corporations, and taxable trustees in specified regions of the province (including Metro Vancouver). It is in addition to the regular PTT brackets above.
The additional tax has a number of moving parts: visa status, taxable trustee rules, partial exemptions for permanent residents in certain cases, and overlap with the federal ban on residential purchases by non-Canadians currently in effect. The interaction between the federal ban and the BC additional tax can determine whether a transaction is even possible, not just how much it will cost. We work through both regimes on any file involving a non-citizen or non-permanent-resident purchaser.
What we do on every file
We calculate PTT from the fair market value (usually the contract price) using the current bracket rates.
We assess every available exemption and confirm with you whether you qualify before relying on one.
We include the calculated PTT (after any exemption) on the statement of adjustments and collect it from you in the funds we receive before closing.
We file the PTT return and remit the tax when the transfer registers at the Land Title Office.
We retain the supporting documents on the file in case of post-registration audit.
Frequently asked
The buyer. PTT is paid by whoever is taking title to the property, calculated on the fair market value at the time of registration. The seller does not pay PTT — they pay capital gains tax (where applicable), but PTT is a buyer-side tax.
PTT is paid as part of the closing transaction. We calculate it from the contract price (or the fair market value, where different), collect it from you in the funds you send us before closing, and remit it to the Province on your behalf when the transfer registers at the Land Title Office. There is no separate certificate or follow-up filing — it is built into closing.
On a residential purchase, PTT is calculated as 1% on the first $200,000 of fair market value, 2% on the portion between $200,000 and $2,000,000, 3% on the portion between $2,000,000 and $3,000,000, and 5% on the portion above $3,000,000. The 3% and 5% top brackets only apply to residential property.
The First-Time Home Buyer Program exempts qualifying buyers from PTT on properties up to a threshold (with a partial exemption above that, up to a phase-out limit). To qualify, you must be a Canadian citizen or permanent resident, have lived in BC for at least one of the past two years (or filed BC income tax for at least two of the past six years), have never owned a principal residence anywhere in the world, and intend to occupy the property as your principal residence within a defined window. The thresholds and amounts are set by the Province and change from time to time — we confirm the current numbers on every first-time-buyer file.
Yes. The Newly Built Home Exemption applies to qualifying newly constructed homes up to a price threshold (with a partial exemption above that). The home must be a principal residence, the buyer must meet residency requirements, and the property must meet the Province's definition of "newly built." As with the first-time-buyer exemption, the thresholds change from time to time; we apply the current rules at closing.
Yes — limited ones. Transfers between spouses, certain transfers from a parent to a child as a principal residence, and certain transfers under a will or on intestacy can be exempt. The rules are narrow and the documentation has to be specific. We assess every family transfer file against the current PTT rules before closing.
The Additional Property Transfer Tax is an additional 20% PTT applicable to certain residential purchases by foreign nationals, foreign corporations, and taxable trustees in defined regions of BC. There is also a separate federal ban on residential purchases by non-Canadians currently in effect. Both regimes have nuances — visa status, taxable trustees, partial exemptions for permanent residents in some cases — and we work through them on the file.
Generally no. PTT must be paid in cash at closing, alongside your down payment and other closing costs. Some lenders allow a small portion of closing costs to be financed, but PTT is usually expected from your own funds.
The Province does post-registration audits. If you claim an exemption you do not qualify for, the Province can reassess and require you to pay the PTT plus interest and penalties. We only claim exemptions where we are confident the file qualifies, and we keep the supporting documents on the file in case of audit.
Try the calculator
Enter the purchase price, the percentage of the property you are acquiring, and whether the additional 20% applies — and we'll work out the standard PTT, the additional tax, and the total payable.
Send us the address, the contract price, and your residency status. We'll come back with the PTT, any exemptions you qualify for, and the net number you actually owe at closing.