How much is BC Property Transfer Tax on a $1M home?

On a $1,000,000 residential purchase the general PTT is $18,000 — 1% on the first $200,000 ($2,000) plus 2% on the next $800,000 ($16,000). The First Time Home Buyers exemption provides NO reduction at $1,000,000 because it fully phases out above $860,000 — a first-time buyer at this price point pays the full $18,000. A qualifying Newly Built Home buyer, by contrast, pays $0 at $1,000,000 because the Newly Built cap is $1,100,000 — that is the single most valuable exemption at this price point. A foreign buyer in a specified area adds 20% × $1,000,000 = $200,000 in Additional PTT, bringing the total to $218,000. Worth checking: model both general PTT and any applicable exemption before condition-removal — the gap between scenarios is six figures.

Do first-time home buyers pay PTT in BC?

It depends on the price. Below $500,000 fair market value, a qualifying first-time buyer pays $0 PTT. Between $500,000 and $835,000, the buyer receives a flat $8,000 reduction off the general PTT bill. Between $835,000 and $860,000, the reduction phases out linearly at $0.32 per dollar above $835,000. Above $860,000 — which is most of Greater Vancouver and increasingly the Fraser Valley — first-time buyers pay the full general PTT with no reduction. Eligibility also requires Canadian citizenship or permanent residence, principal-residence occupancy within 92 days of registration, a minimum one-year occupancy, and no prior registered interest in a principal residence anywhere in the world. A check worth doing: confirm FMV in writing before relying on the exemption, because appraisal lifts that push the price across $860,000 erase the benefit entirely.

When do I actually pay BC PTT?

PTT is due at registration of the title transfer at the BC Land Title Office, which lawyers and notaries typically process on the contractual completion date or one business day prior. In practical terms, the buyer wires PTT to their conveyancer along with the down-payment shortfall, legal fees, adjustments, and any GST on new construction roughly two business days before completion. The funds clear the lawyer's trust account before submission to LTSA. PTT is not financeable through the mortgage, not deferrable, and not covered by CMHC default insurance — it is cash on close. The right framing: every BC offer should be modelled with PTT inside the closing-day cash demand from day one, not bolted on after subject removal.

Does PTT apply to inherited property or gifts?

Inherited property is generally exempt from PTT under a specific Section 14 exemption when the transfer is made to a survivor or beneficiary under a will, intestacy, or right of survivorship — but the exemption must be claimed correctly on the Property Transfer Tax Return, and the conveyancing lawyer must file the appropriate election. Gifts and related-party transfers between family members are not automatically exempt: a transfer from parent to adult child, for example, is generally taxable at the property's fair market value at the date of registration, even when no money changes hands. Specific spousal and family-farm exemptions exist but are narrowly drawn. A check worth doing: never assume a family transfer is PTT-free. Confirm in writing with a real estate lawyer before signing — a missed election can crystallize five-figure PTT bills on transfers the family thought were free.

How is BC PTT different from GST on new builds?

PTT is a provincial tax on the registered fair market value of any residential title transfer, paid on every taxable transaction regardless of construction status. GST is a federal tax (5%) applied to the purchase price of new construction only — resale homes are GST-exempt. The two stack on a new build: a buyer of a $1,200,000 newly built townhouse owes PTT (general bracket math) plus 5% GST = $60,000, partially offset by the GST New Housing Rebate if the unit is the buyer's primary residence and below the rebate cap. Critically, the PTT Newly Built Home exemption and the GST New Housing Rebate are independent regimes — qualifying for one does not affect the other. See /glossary/gst-new-housing-rebate-bc for the GST mechanics. Worth checking: when comparing a $1.1M new build to a $1.1M resale, the new build can be the cheaper line item once both PTT exemptions and GST rebates clear — but only if the buyer models all three taxes together.

BC Real Estate Glossary

Property Transfer Tax

Also known as: PTT · BC PTT · Land Transfer Tax · BC Property Transfer Tax

A provincial tax payable to the Province of British Columbia on the registered fair market value of any residential property title transfer, calculated using marginal-rate brackets.

Property Transfer Tax (PTT) is a one-time provincial tax payable on the registered fair market value of any title transfer at the BC Land Title Office. It is calculated on a marginal-bracket basis: 1% on the first $200,000 of FMV, 2% on the portion from $200,000 to $2,000,000, 3% on the portion from $2,000,000 to $3,000,000, and an additional 2% (for a 5% top bracket) on the residential portion above $3,000,000. The 1%/2%/3% lower brackets apply to all property classes; the 5% top-bracket rate above $3M applies to residential-class property only.

The buyer pays PTT, not the seller, and the tax falls due at registration of the title transfer — typically on or one business day before the contractual completion date. Roughly 85% of BC residential transactions ship a PTT cheque on closing because so few transfers qualify for a full exemption above the entry-level price points. PTT is not financeable through CMHC default insurance and cannot be rolled into the mortgage, which is why it lands in the closing-day cash column alongside legal fees and adjustments. See /glossary/closing-day for the full cash-on-close stack.

Two main exemption regimes blunt the bill at the entry level. The First Time Home Buyers exemption is available for homes up to $835,000 FMV: full relief (no PTT) up to $500,000, then $8,000 off between $500,000 and $835,000, with a linear phase-out from $835,000 to $860,000 — above $860,000 a first-time buyer pays the full general PTT. The Newly Built Home exemption gives full relief up to $1,100,000 FMV with a phase-out to $1,150,000. The two exemptions are mutually exclusive; a buyer who qualifies for both must elect one. See /glossary/first-time-home-buyer-exemption and /glossary/newly-built-home-exemption.

Foreign nationals, foreign corporations, and taxable trustees pay an additional 20% PTT on top of the general rate when purchasing residential property in five specified regional districts: Metro Vancouver, Capital, Fraser Valley, Nanaimo, and Central Okanagan. The 20% Additional PTT operates independently of the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act — a buyer can be exempt from the federal ban (e.g., as a work-permit holder meeting residency conditions) yet still owe the 20% surcharge. See /glossary/foreign-buyer-additional-tax for the eligibility and geography rules.

BC buyers consistently underweight Property Transfer Tax in their offer math. The headline price drives the financing conversation; the closing-day cash demand arrives weeks later, often after rate-locks and condition-removal have already shaped the deal. Lenders quote the principal-plus-interest payment and the CMHC premium — neither line includes PTT, neither line is mortgage-financeable, and neither lender is contractually obligated to surface it. The right move is to model PTT before writing an offer, not after subject removal.

Worked example: a Fort Langley townhouse transferring at $1,500,000 triggers exactly $28,000 of PTT — 1% × $200,000 = $2,000, plus 2% × $1,300,000 = $26,000. A White Rock detached at $2,400,000 triggers $50,000 — $2,000 + $36,000 (2% × $1.8M) + $12,000 (3% × $400K). A Point Grey detached at $3,500,000 triggers $93,000 — $2,000 + $36,000 + $30,000 (3% × $1M) + $25,000 (5% × $500K residential portion above $3M). For a foreign buyer at the same Point Grey price, add 20% × $3,500,000 = $700,000 in Additional PTT, for a total of $793,000.

Run the live numbers against any BC purchase price at /calculators/ptt — the calculator threads bracket math through the FTHB and Newly Built exemption logic, flags Additional PTT in specified areas, and shows the cell-by-cell derivation so buyers can stress-test the offer before subject removal. The underlying Fact Bank entry, with primary-source citations to the Property Transfer Tax Act and the BC government calculation page, is /codex#bc.ptt.brackets.

Frequently asked questions

How much is BC Property Transfer Tax on a $1M home?: On a $1,000,000 residential purchase the general PTT is $18,000 — 1% on the first $200,000 ($2,000) plus 2% on the next $800,000 ($16,000). The First Time Home Buyers exemption provides NO reduction at $1,000,000 because it fully phases out above $860,000 — a first-time buyer at this price point pays the full $18,000. A qualifying Newly Built Home buyer, by contrast, pays $0 at $1,000,000 because the Newly Built cap is $1,100,000 — that is the single most valuable exemption at this price point. A foreign buyer in a specified area adds 20% × $1,000,000 = $200,000 in Additional PTT, bringing the total to $218,000. Worth checking: model both general PTT and any applicable exemption before condition-removal — the gap between scenarios is six figures.
Do first-time home buyers pay PTT in BC?: It depends on the price. Below $500,000 fair market value, a qualifying first-time buyer pays $0 PTT. Between $500,000 and $835,000, the buyer receives a flat $8,000 reduction off the general PTT bill. Between $835,000 and $860,000, the reduction phases out linearly at $0.32 per dollar above $835,000. Above $860,000 — which is most of Greater Vancouver and increasingly the Fraser Valley — first-time buyers pay the full general PTT with no reduction. Eligibility also requires Canadian citizenship or permanent residence, principal-residence occupancy within 92 days of registration, a minimum one-year occupancy, and no prior registered interest in a principal residence anywhere in the world. A check worth doing: confirm FMV in writing before relying on the exemption, because appraisal lifts that push the price across $860,000 erase the benefit entirely.
When do I actually pay BC PTT?: PTT is due at registration of the title transfer at the BC Land Title Office, which lawyers and notaries typically process on the contractual completion date or one business day prior. In practical terms, the buyer wires PTT to their conveyancer along with the down-payment shortfall, legal fees, adjustments, and any GST on new construction roughly two business days before completion. The funds clear the lawyer's trust account before submission to LTSA. PTT is not financeable through the mortgage, not deferrable, and not covered by CMHC default insurance — it is cash on close. The right framing: every BC offer should be modelled with PTT inside the closing-day cash demand from day one, not bolted on after subject removal.
Does PTT apply to inherited property or gifts?: Inherited property is generally exempt from PTT under a specific Section 14 exemption when the transfer is made to a survivor or beneficiary under a will, intestacy, or right of survivorship — but the exemption must be claimed correctly on the Property Transfer Tax Return, and the conveyancing lawyer must file the appropriate election. Gifts and related-party transfers between family members are not automatically exempt: a transfer from parent to adult child, for example, is generally taxable at the property's fair market value at the date of registration, even when no money changes hands. Specific spousal and family-farm exemptions exist but are narrowly drawn. A check worth doing: never assume a family transfer is PTT-free. Confirm in writing with a real estate lawyer before signing — a missed election can crystallize five-figure PTT bills on transfers the family thought were free.
How is BC PTT different from GST on new builds?: PTT is a provincial tax on the registered fair market value of any residential title transfer, paid on every taxable transaction regardless of construction status. GST is a federal tax (5%) applied to the purchase price of new construction only — resale homes are GST-exempt. The two stack on a new build: a buyer of a $1,200,000 newly built townhouse owes PTT (general bracket math) plus 5% GST = $60,000, partially offset by the GST New Housing Rebate if the unit is the buyer's primary residence and below the rebate cap. Critically, the PTT Newly Built Home exemption and the GST New Housing Rebate are independent regimes — qualifying for one does not affect the other. See /glossary/gst-new-housing-rebate-bc for the GST mechanics. Worth checking: when comparing a $1.1M new build to a $1.1M resale, the new build can be the cheaper line item once both PTT exemptions and GST rebates clear — but only if the buyer models all three taxes together.

First Time Home Buyers' PTT Exemption — A BC Property Transfer Tax exemption for qualifying first-time home buyers — available for homes up to $835,000 fair market value: full exemption (no PTT) to $500,000, $8,000 off from $500,000 to $835,000, linear phase-out $835,000–$860,000.
Newly Built Home PTT Exemption — A BC Property Transfer Tax exemption for newly constructed homes with FMV at or under $1,100,000, with linear phase-out to $1,150,000.
BC Foreign Buyer Additional PTT — A 20% additional Property Transfer Tax payable by foreign nationals, foreign corporations, and taxable trustees buying residential property in five specified BC regional districts.
Builders Lien (BC Builders Lien Act) — A statutory charge under the BC Builders Lien Act (SBC 1997, c.

Frequently asked questions

Related terms

See also