Mikaila Rhodes Victoria Realtor®

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First Time Home Buyer Property Transfer Tax Exemption

The Provincial Government announced last week that effective February 22nd, first time home buyers will receive a full exemption on Property Transfer Tax for any purchase up to $500,000, and a partial exemption for purchases up to $525,000!

 

This is an increase from $475,000 for a full exemption and $500,000 for a partial exemption. Although this isn't a large increase it is a step in the right direction, and hopefully they continue to raise this amount over time, but for first home buyers this could now save you $8,000 on your home purchase of $500,000  


The Property Transfer Tax is calculated at a rate of 1% on the first $200,000 of the purchase price and 2% on the balance. 

Do I Qualify?

To qualify for a full exemption, at the time the property is registered you must:

  • be a Canadian citizen or permanent resident
  • have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
  • have never owned an interest in a principal residence anywhere in the world at any time 
  • have never received a first time home buyers' exemption or refund

and the property must:

  • be located in B.C.
  • only be used as your principal residence
  • have a fair market value of:
    • $475,000 or less if registered on or before February 21, 2017, or
    • $500,000 or less if registered on or after February 22, 2017
  • be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

For full details to see if you qualifty for the first time home buyer property transfer tax exemption view the link below:


http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers

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