Calculate your property transfer tax

Property Transfer Tax (PTT) is a tax on land registration that applies to taxable transactions. It is payable on the date of registration when changes to a certificate of title are recorded at any Land Title Office in British Columbia. It is important to note that pre-sale condominiums are treated differently; therefore, consulting with your mortgage provider or lawyer is recommended for specific guidance.

The rates for Property Transfer Tax are structured as follows:

• 1% on the first $200,000 of the fair market value,

• 2% on the value over $200,000 and up to $2,000,000,

• 3% on the value exceeding $2,000,000,

• An additional 2% on the residential property value over $3,000,000.

Property Transfer Tax is calculated based on the fair market value of the property, defined as the price that a willing buyer would pay to a willing seller in an open market on the registration date. An open market implies that the property is listed or advertised in such a way that potential buyers can make offers.

In most cases where a property is bought in an open market, the purchase price at the time of registration (typically within a few months of signing the sales contract) represents the fair market value. However, if the transaction is non-monetary or the property was not sold in an open market, fair market value must be established through other means, such as an independent appraisal or the value assessed by BC Assessment.

BC Assessment typically reflects the fair market value as of July 1 of the preceding year. For instance, the values assessed for the tax year 2022 are based on market conditions as of July 1, 2021. Keep in mind, these values may not represent the current market value at the date of registration, and markets can shift quickly. In such cases, a more recent appraisal may be necessary. The assessed value might also not reflect current market conditions if the property has been rezoned, undergone significant changes, or is classified differently, such as farmland.

Check out our blog post (below) about what to expect in terms of REALTOR fee commissions in Vancouver, BC