BC property transfer tax at ten prices, and how the first-time buyer exemption phases out

Property transfer tax is the biggest closing cost most British Columbia buyers face, and it's due in cash on completion day. It isn't rolled into the mortgage. On a $1,000,000 home it's $18,000. On a $3,000,000 home it's $68,000. Yet many buyers find out the number only when their lawyer or notary sends the statement of adjustments.

This guide runs the tax at ten purchase prices, shows how the effective rate climbs, and walks through the first-time buyer exemption, which is worth up to $8,000 and phases out over a narrow price band.

Property transfer tax is charged on the fair market value of the home on the day it's registered, not on the list price.

How the tax is calculated

The general tax is charged on the property's fair market value, usually the purchase price, in brackets:

Portion of the price	Rate
First $200,000	1%
$200,000 to $2,000,000	2%
Above $2,000,000	3%
Residential value above $3,000,000	an extra 2% (5% in total)

So a $1,000,000 home costs $2,000 on the first $200,000, plus 2% of the next $800,000 ($16,000), for $18,000 in total.

Between $200,000 and $2,000,000 every extra $100,000 of price adds $2,000 of tax.

Price	Tax	Effective rate
$400,000	$6,000	1.50%
$600,000	$10,000	1.67%
$800,000	$14,000	1.75%
$1,000,000	$18,000	1.80%
$1,500,000	$28,000	1.87%
$2,000,000	$38,000	1.90%
$3,000,000	$68,000	2.27%
$4,000,000	$118,000	2.95%

The effective rate

The effective rate stays under 2% until about $2.2 million, then climbs quickly.

Most of Metro Vancouver's condo and townhouse market sits where the effective rate is about 1.6% to 1.9%. Above $3,000,000 the extra residential rate makes the tax rise twice as fast with each dollar of price.

For buyers comparing prices across cities, the tax should be added to the down payment, not the mortgage. A $1,200,000 townhouse in Burnaby needs $22,000 of tax on top of the down payment, for example.

The first-time home buyer exemption

For properties registered on or after April 1, 2024, the exemption is a flat $8,000 between $500,000 and $835,000.

For homes registered on or after April 1, 2024:

• Up to $500,000: no property transfer tax at all.
• $500,000 to $835,000: the exemption is $8,000, which is the tax on the first $500,000.
• $835,000 to $860,000: the $8,000 is reduced in proportion. At $847,500 it's $4,000.
• $860,000 and above: no exemption.

The buyer must be a Canadian citizen or permanent resident, must have lived in BC for 12 months before the purchase (or filed two tax returns as a BC resident in the last six years), must never have owned a principal residence anywhere, and must move in within 92 days and live there for the first year. If one buyer qualifies and the other doesn't, the exemption is shared in proportion to ownership.

For a fuller explanation of the program and the rest of the first-time buyer incentives, see EstateBlock's first-time home buyer guide for BC.

For a first-time buyer, the line between $835,000 and $860,000 is worth up to $8,000.

Other exemptions to know

• Newly built homes: a separate exemption applies to new principal residences up to a higher threshold, with a phase-out above it. Check the current thresholds before you write an offer on a presale.
• Transfers between related people: some transfers of a principal residence between family members are exempt.
• Foreign buyers: the additional property transfer tax of 20% applies to foreign nationals buying residential property in specified areas, on top of the general tax.

Planning the cash on completion

1. Work out the tax at your expected price, using the brackets above.
2. Add legal fees, title insurance, strata document fees or a home inspection, and a moving budget.
3. Keep the total in cash in addition to your down payment.
4. If you're a first-time buyer near $835,000, check how close the price is to the phase-out.

Quick answers

Is property transfer tax paid on the list price or the sale price? On fair market value, which is normally the price you paid.

Can it be added to the mortgage? No. It's paid on completion, from your own funds.

Does a presale buyer pay it on the assignment price? The tax is assessed when the title is registered, on the fair market value at that time.

Sources and further reading

• Government of British Columbia: Property transfer tax
• Government of British Columbia: First time home buyers' exemption amounts

General information only, not tax or legal advice. Confirm current rates and eligibility with your lawyer or notary.

Photo: Neighborhood Houses by Qusai Akoud (CC0); photo: Houses Apartments by Gabriel Santiago (CC0). Charts by the author.