According to B.C.'s Property Transfer Tax website:
The amount of tax you pay is based on the fair market value of the land and improvements (e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax is charged at a rate of:
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000.
The provincial government has projected that by implementing an increase of 3% in property transfer tax on the portion of fair market value over $2 million, it will raise an additional $75 million in taxes each year.
New homes selling up to $750,000 will be fully exempt from the property transfer tax when bought by a Canadian citizen(s) or permanent resident(s) as principal residence and lived-in for one year. This new exemption could save purchasers up to $13,000!
For more information, please click on the links: