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BC land transfer tax


When you a buy a house, condo or land in BC you are subject to land transfer tax which is due upon closing. Use RateHub’s calculator to determine your applicable land transfer tax or view BC's 2013 rates below and follow along with our sample calculation.

BC land transfer tax calculator

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Land Transfer Tax: $-
 
STEP 4
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Provincial:        Provincial Land transfer tax (LTT), typically calculated as a percentage of the purchase price of a home, is required when purchasing a home in Canada. All provinces have a LTT, and the amount varies in each province. plus
 
Municipal:        Municipal Some municipalities, like Toronto, levy an additional LTT, which is similarly calculated as a percentage of the purchase price of a home. plus
 
Rebate:        Rebate If you are a first-time home buyer in British Columbia or Ontario, you will be eligible for LTT rebates, equal to the value of the LTT up to a maximum amount set by the province. minus
 

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Land transfer tax rates in British Columbia – Updated in 2013

The British Columbia land transfer tax is a marginal tax, and each portion of your home's value is taxed at its own unique tax rate. These land transfer tax rates are as follows:

Purchase price Marginal Tax RateFirst-time home
buyer rebate
First $200,000 1.0%

British Columbia offers a land transfer tax rebate to first-time
home buyers. Buyers are eligible for either a full tax rebate or
partial tax rebate depending on the value of their home.

More than $200,000 2.0%

Source: Government of British Columbia, "Property Transfer Tax"

British Columbia land transfer tax example calculation

Let’s assume you are purchasing a house worth $250,000:

British Columbia land transfer tax calculation

$200,000 1st marginal bracket
*
1.0% marginal tax rate
=
$2,000 land transfer tax

(
$250,000 property value
-
$200,000 lower marginal tax bracket
) *
2.0% marginal tax rate
=
$1,000 land transfer tax

$2,000 land transfer tax
+
$1,000 land transfer tax
=
$3,000 total land transfer tax

Land transfer tax rebate - British Columbia

British Columbia provides land transfer tax rebates for first time homebuyers. Homes purchased for $425,000 or less will receive a full refund. For homes purchased between $425,000 and $450,000, a partial refund is given. A sample calculation of this can be seen below.

British Columbia first-time home buyer rebate example calculation

For a house worth $440,000, the land transfer tax is calculated to be $6,800, and the tax rebate is calculated as follows:

British Columbia land transfer tax rebate calculation

( (
$450,000
-
$440,000purchase price
) /
$25,000
) *
$6,800land transfer tax
=
$2,720tax rebate

$6,800land transfer tax
-
$2,720tax rebate
=
$4,080land transfer tax paid

First-time home buyer eligibility in British Columbia

You qualify as a first time home buyer if:

  • You are a Canadian citizen or a permanent resident of Canada.
  • You have lived in BC for 12 consecutive months before the property is registered, or you have filed 2 income. taxes in BC in the past six years.
  • You have never owned a home anywhere else in the world at any time.
  • You have never received a first time home buyers’ refund or exception.

Your property qualifies for a full refund if:

  • The market value of the property is not more than $425,000.
  • The land is 0.5 hectares or smaller.
  • The property will be used as your primary residence.

You will only qualify for a partial refund if:

  • Your property is between $425,000 and $450,000 in value.
  • The land is greater than 0.5 hectares.
  • A portion of the land is used for commercial purposes or there are other homes on your land (only your primary residence is eligible).

Application

To apply, you must fill out a First Time Home Buyers’ Property Transfer Tax Return and other appropriate Land Title forms at the Land Title Office when your property is registered.

Source: Government of British Columbia, "First Time Home Buyers Program"