What is Property Transfer Tax?
Property Transfer Tax (PTT) is the Government of British Columbia’s tax on the purchase of real estate. The tax 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
Buying real estate in Whistler, whether ski-in/ski-out or not, is a smooth process when working with an experienced Whistler real estate agent who follows the rules. Everything in real estate, except for writing the contract and the negotiation is a process. Experienced realtor, and skilled negotiator, Marion Anderson will work with you directly from start to finish. No assistants are involved.
Marion Anderson Personal Real Estate Corporation
marion@WhistlerSkiinSkiout.com (604) 938-3885