What is Property Transfer Tax?
Property Transfer Tax (PTT) is charged at the time of closing and the transfer of title from the seller to the buyer. Financial institutions will not include PTT as part of your mortgage.
You are charged property transfer tax when you make changes to a property’s title, including but not limited to:
- acquiring a registered interest in the property
- gaining an additional registered interest in the property
- becoming the registered holder of a lease, life estate, or right to purchase for the property
The property transfer tax rate is:
- 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,
- 3% on the portion of the fair market value greater than $2,000,000, and
- if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).
How to Calculate Property Transfer Tax
Here is an example taken from the BC Government Page: If the fair market value of a property classified entirely as residential is $4,500,000, the tax paid is $143,000.
- 1% on the first $200,000 = $2,000
- 2% on portion greater than $200,000 and up to and including $2,000,000 = (($2,000,000 – $200,000) = $1,800,000 x 2%) = $36,000
- 3% on portion greater than $2,000,000 = (($4,500,000 – $2,000,000) = $2,500,000 x 3%)= $75,000
- If the property is residential, a further 2% on the portion greater than $3,000,000 = (($4,500,000 – $3,000,000) = $1,500,000 X 2%) = $30,000
- $2,000 + $36,000 + $75,000 + $30,000 = $143,000
So, if you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please contact me.
It’s a Good Life in Whistler!
Marion Anderson *PREC email@example.com (604)938-3885