Property transfer tax is a one time fee paid to the provincial government by anyone purchasing a new home, who is not a first time home buyer or purchasing new construction (pre-sales).
For information on the First Time Home Buyer's Program, please click here to be taken to our article.
Property transfer tax is a simple calculation, it is a fee calculated based on the final sale price of the home you are purchasing. 1% of the first $200,000 and 2% on the portion above $200,000 up to $2,000,000.
For a $600,000 purchase, your property transfer tax will be $2,000 + $8,000 for a total of $10,000. For a purchase price of $400,000, your property transfer tax will be $2,000 + $4,000 for a total of $6,000.
This tax is paid to the government of British Columbian and is of no beenfit to the seller or the buyer. Only individuals purchasing a home are required to pay this tax, the seller of a home does not have any applicable property transfer tax to pay.