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BC Real Estate Q&A

Do I owe BC PTT if I inherit a property from a parent?

Last reviewed by Bronson Job PREC, REALTOR®Sources: BC GovernmentCC BY 4.0How we verify

A note from me: I’m Bronson Job, a REALTOR® (PREC) with Momentum Realty Inc., so I earn a commission when I help someone buy or sell. I write these guides to be genuinely useful — general information, not advice on your specific situation — and I take no payment from any third party named in them. How I verify.

Direct answer

Generally no, but narrower than it sounds: the exemption covers the home the deceased lived in, and only if you are a Canadian citizen or permanent resident. Section 14 of the Property Transfer Tax Act sets it out, and the Act defines both words carefully. "Related individual" means a spouse, child, grandchild, parent, grandparent or sibling WHO IS a Canadian citizen or permanent resident, so a child living abroad without status does not qualify. "Principal residence" means a parcel of half a hectare or less, carrying improvements for three or fewer families, all classified residential. A recreational residence can also pass, on tighter terms: 5 hectares or less, classified residential, and a fair market value no higher than $275,000. To claim it you file the appropriate Special Property Transfer Tax Return at land-title registration with the death certificate, the will or grant of probate, and proof of relationship. What usually surprises people is the order of operations. Moving the title into the name of the executor is exempt in every case, whatever the property is, under section 14(4)(q). The tax question only arises on the transfer OUT of the estate to a beneficiary, and there a property that was not the residence of the deceased is taxed on the ordinary brackets: 1% on the first $200K, 2% to $2M, 3% to $3M, 5% on residential value above $3M. Separately, the estate is treated federally as having sold everything at fair market value on the date of death, so capital gains can land on the final return even where no transfer tax is owed. The lawyer handling the estate and the family accountant should agree on both before title moves.

Primary sources

Backed by Fact Bank entries

Sources: BC Government
Verified sources (2)· re-verified 2026-05-19Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: bc.ptt.brackets · v1View in Codex →
Sources: CRA · Government of Canada
Verified sources (4)· re-verified 2026-08-02Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: bc.tax.capital_gains_pre_interaction · v1View in Codex →

See also

Bronson Job PREC, REALTOR® at Momentum Realty Inc. — Langley + Fraser Valley + Greater Vancouver
Bronson Job PRECREALTOR® · Momentum Realty Inc.GVR Member #6015742 · FVREB Member #FJOBBR