Calculating BC Property Transfer Tax
When you purchase real estate in British Columbia the amount of the Property Transfer Tax payable is 1% on the first $200,000 of the property’s fair market value and 2% on the remaining fair market value. The tax is calculated on the selling price of a property but if the transaction does not reflect fair market value (IE: the transfer of property is taking place without the exchange of money) the tax is charged on the fair market value.
Here is how you calculate BC Property Transfer Tax:
If the fair market value of the property is $150,000, the tax payable would be $1,500
$150,000 x 1% = 1500
If the fair market value of the property is $350,000, the tax payable would be $5,000
1% on the first $200,000.00 = $2,000
2% on the remaining $150,000.00 = $3,000
$2000 + $3000 = $5000
First Time Home buyers do not have to pay Property Transfer Tax if the fair market value of the home they are purchasing is under $425,000.(under current rules, at the date of this post). Purchaser and property must meet certain criteria to qualify for this exemption.
First Time Home buyers can qualify for for partial exemption if the fair market value of the home they are purchasing is between $425,000 and $450,000
Click here to see more examplesof how partial Property Transfer Tax is calculated.
Click here visit website of Govt. of BC about Property Transfer Tax