BC Net Proceeds Calculator

Common questions about net proceeds at sale

• How is BC realtor commission calculated?

  BC law sets no commission rate. A structure often quoted is 7% on the first $100,000, then 2.5% to 3% on the rest, which this page uses as an example and not a recommendation. Sales tax of 5% is added on top of the commission itself. The amount is whatever the listing contract says, and the field above is editable so you can enter what you have actually agreed to. Source: BC Financial Services Authority, “What costs come with selling a home”.
• When do I pay capital gains tax?

  Not on closing day. Your notary does not hold any of it back. It goes on your personal tax return for the year you sold, and it is due by April 30 the following year. So the figure above is genuinely what lands in your account, but a chunk of it is spoken for.
• What is the Principal Residence Exemption?

  If a home was the one you lived in for every year you owned it, you pay no tax on the profit. If you lived there for some years and rented it out for others, you get a share of that break: one plus the number of years you claim it, divided by the number of years you owned it. The extra year is real and it is easy to miss, and it exists so that moving house does not cost you a year of the exemption. This calculator handles the two clean cases, all or nothing. If yours is a mix, an accountant needs to do the math.
• What is the BC Home Flipping Tax?

  A BC tax that started January 1, 2025. If you sell within two years of buying, you pay a share of the profit: 20% in the first year, then shrinking a little every day until it reaches zero at the two-year mark. If you lived there and owned it at least a year, up to $20,000 comes off the profit before the tax is worked out. It comes on top of the regular tax on the profit. And if you sell inside the first year, a separate federal rule can take away the tax-free treatment you would normally get on your own home, unless a death, a separation, a job move or a disability forced the sale.
• How is the prepayment penalty calculated?

  If your rate is variable, it is three months of interest, what you owe, times your rate, divided by four. If your rate is fixed, it is three months of interest or a bigger calculation based on how far your rate sits from today's rates, whichever costs more. That second one can run into the tens of thousands, and every lender works it out differently. Phone yours and get the number in writing before you list.
• Is GST charged on commission?

  Yes. Commission is a service, so 5% sales tax is added to it: on a $50,000 commission that is $2,500. The tax is on the commission, not on the home. Selling a used home is not taxed. It shows as its own line above so you can see it.