Quick answer
BC property transfer tax is 1% of the first $200,000, 2% of the part from $200,000 to $2,000,000, and 3% above $2,000,000, plus a further 2% on homes over $3,000,000. On a $1,000,000 home that's $18,000. A first-time buyer pays nothing on a home up to $500,000 and saves $8,000 on a home up to $835,000.
Property transfer tax is a one-time tax paid when a property is registered at the Land Title Office. In most cases your lawyer or notary files the return as part of closing, so the tax needs to be part of the cash you have ready. It's separate from the property tax you pay to the city every year.
How the tax is worked out
| Part of the fair market value | Rate |
|---|---|
| Up to $200,000 | 1% |
| $200,000 to $2,000,000 | 2% |
| Over $2,000,000 | 3% |
| Residential property over $3,000,000 | a further 2% |
The Province's own example: a $650,000 home pays 1% on the first $200,000 ($2,000) plus 2% on the remaining $450,000 ($9,000), for $11,000. The tax is based on fair market value on the day of registration, which is usually the purchase price.
First-time home buyer exemption
For homes registered on or after April 1, 2024, when the whole property qualifies:
- $500,000 or less: no property transfer tax at all.
- Over $500,000, up to $835,000: an $8,000 exemption, the same as the tax on the first $500,000.
- Over $835,000, under $860,000: the $8,000 shrinks. The Province's formula is $8,000 × ($860,000 − value) ÷ $25,000.
- $860,000 or more: no exemption.
To qualify, you must be a Canadian citizen or permanent resident, have lived in BC for the year before registration (or filed two BC tax returns in the last six years), and never have owned a principal residence anywhere in the world or had this exemption before. The home must be your principal residence, 0.5 hectares or smaller, with only residential buildings.
Important: To keep the exemption you must meet the Province's occupancy requirements during your first year of ownership, including moving in within the required time. All applications are reviewed, and falsely declaring that you never owned a principal residence or never had the exemption before brings a penalty equal to the exemption claimed.
Newly built home exemption
A newly built home that will be your principal residence is fully exempt up to a fair market value of $1,100,000. The Province's example: a $1,100,000 new home saves the full $20,000. The exemption phases out between $1,100,000 and $1,150,000, and there's none above that.
The Province doesn't publish the exact phase-out formula on its exemption page, so for prices in that $50,000 band the calculator shows the tax before the exemption. Your lawyer or notary will calculate the real amount.
What the calculator doesn't cover
- The 20% additional property transfer tax for foreign nationals, foreign corporations and taxable trustees in Metro Vancouver and other specified areas.
- Partial interests, properties over 0.5 hectares, or properties with non-residential buildings.
- Legal fees, title insurance and property tax adjustments, which your lawyer or notary will quote.
Planning the whole purchase? Our BC mortgage calculator adds this tax to your down payment to show the cash you'll need.
Frequently Asked Questions
How much is property transfer tax on a $1 million home in BC?
$18,000: $2,000 on the first $200,000 and $16,000 (2%) on the next $800,000. A first-time buyer can't claim the exemption at that price, because it ends at $860,000.
Do first-time buyers pay property transfer tax in BC?
Not on a qualifying home of $500,000 or less. From $500,000 to $835,000 they save $8,000, and the saving phases out to zero at $860,000.
When do you pay property transfer tax?
When the property is registered at the Land Title Office. In most cases your lawyer or notary files the property transfer tax return for you as part of closing.
Is property transfer tax the same in Surrey as Vancouver?
Yes. It's a provincial tax, so the same rates and exemptions apply everywhere in BC. The foreign buyer tax is different: it applies only in certain regions, including Metro Vancouver.
Official sources
- Province of BC: Property transfer tax
- Province of BC: Calculation examples
- Province of BC: First time home buyers' program
- Province of BC: First time home buyers' exemption amounts
- Province of BC: Newly built home exemption
- Province of BC: Additional property transfer tax
An estimate for general information, not financial advice. Rates change, so check the official sources above before you rely on a number. Spotted something out of date? Tell us.