What Is BC Property Transfer Tax?
The Property Transfer Tax (PTT) is a provincial tax you pay when you purchase or gain an interest in a property in British Columbia. It's calculated as a percentage of the property's fair market value and is due at the time of closing — not annually like property taxes.
This is one of the largest closing costs buyers face in BC, and it catches many first-time buyers off guard. On a $900,000 home in Surrey, for example, the property transfer tax alone comes to $16,000. It's important to budget for this cost before you make an offer.
Key Takeaway
How Is Property Transfer Tax Calculated?
The PTT uses a tiered rate structure based on the fair market value of the property. Here are the current rates:
| Property Value Range | Tax Rate |
|---|---|
| First $200,000 | 1% |
| $200,001 – $2,000,000 | 2% |
| $2,000,001 – $3,000,000 | 3% |
| Above $3,000,000 | 5% |
Let me show you how this works with common Surrey home prices:
| Home Price | PTT Calculation | Total PTT |
|---|---|---|
| $500,000 | $200K × 1% + $300K × 2% | $8,000 |
| $750,000 | $200K × 1% + $550K × 2% | $13,000 |
| $900,000 | $200K × 1% + $700K × 2% | $16,000 |
| $1,200,000 | $200K × 1% + $1M × 2% | $22,000 |
| $1,500,000 | $200K × 1% + $1.3M × 2% | $28,000 |
Calculate Your Property Transfer Tax
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First-Time Home Buyer PTT Exemption
If you're a first-time home buyer in BC, you may qualify for a full or partial exemption from the property transfer tax. This exemption can save you thousands of dollars at closing.
To qualify for the full exemption, you must meet these requirements:
- Canadian citizen or permanent resident — You must be a citizen or PR at the time of registration.
- BC resident for 12 months — You must have lived in BC for at least one full year before the purchase date, OR filed at least 2 BC income tax returns in the past 6 years.
- Never owned a principal residence anywhere — You cannot have previously owned a home that was your primary residence, anywhere in the world.
- Property value under $835,000 — The full exemption applies to properties valued at $835,000 or less. A partial exemption is available for properties between $835,000 and $860,000.
- Property size under 0.5 hectares — The property must be 0.5 hectares (1.24 acres) or smaller.
- You must live in the home — You must move in within 92 days of closing and live there for at least one year.
💡 Partial Exemption
For a first-time buyer purchasing a $800,000 home in Surrey, the full exemption saves you $14,000 in property transfer tax. That's a significant amount that can go toward furnishing your new home or building your emergency fund.
Newly Built Home PTT Exemption
Buying a brand-new home? You may qualify for the Newly Built Home Exemption, which is separate from the first-time buyer exemption. This applies to new construction, including:
- A house that has never been occupied
- A new condo unit that has never been occupied
- A manufactured home that has never been placed on a lot
- A property with a new home built on previously vacant land
The full exemption applies to newly built homes valued at $1,100,000 or less. A partial exemption is available for properties between $1,100,000 and $1,150,000. Unlike the first-time buyer exemption, you don't need to be a first-time buyer to qualify.
✅ You Can Claim Both Exemptions
Additional PTT for Foreign Buyers
Non-Canadian citizens and non-permanent residents purchasing property in certain areas of BC are subject to an additional 20% property transfer tax, often called the “foreign buyer tax.”
This additional tax applies to properties in the following regions:
- Metro Vancouver (including Surrey, Burnaby, Richmond, Vancouver)
- Fraser Valley Regional District
- Capital Regional District (Victoria)
- Regional District of Central Okanagan (Kelowna)
- Regional District of Nanaimo
On a $1,000,000 home in Surrey, a foreign buyer would pay $18,000 in regular PTT plus $200,000 in additional foreign buyer tax, for a total of $218,000. Note that Canada's foreign buyer ban is currently in effect through 2027 — learn more about the current foreign buyer ban rules.
When and How Do You Pay?
The property transfer tax is paid at the time the property is registered at the Land Title Office, which happens on your closing day. Here's how the process works:
- Your lawyer or notary handles it — The PTT is included in your closing statement. Your legal representative calculates the amount and submits payment on your behalf.
- Paid from closing funds — The tax is deducted from the funds you bring to closing. It's not a separate bill you receive later.
- Due on the closing date — There is no installment plan. The full PTT amount is due when ownership transfers.
Make sure to factor this cost into your budget when planning your home purchase. Along with your down payment, you'll need funds available for PTT, legal fees, and other closing costs.
See Your Full Closing Costs
Estimate your property transfer tax alongside all other closing costs with my free calculator.