Common Questions
Property Transfer Tax FAQ
How is BC's property transfer tax calculated?
1% on the first $200,000, 2% on the portion from $200,000 to $2,000,000, and 3% on the portion above $2,000,000. Residential properties also pay a further 2% on the portion of the value above $3,000,000.
How does the first-time buyer exemption actually work?
It's a credit of up to $8,000 (the tax on a $500,000 home) applied against your property transfer tax, available in full for homes valued up to $835,000. Between $835,000 and $860,000 the credit shrinks proportionally to zero. Above $860,000, there's no exemption at all. You must be a Canadian citizen or permanent resident, have lived in BC for 12 consecutive months (or filed 2 BC income tax returns in the last 6 years), and have never owned a principal residence anywhere in the world.
What's the newly built home exemption?
A full exemption on new construction valued up to $1,100,000, phasing out 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, but the home must be newly built and you must be its first occupant.
Does the foreign buyer tax really apply in Kelowna?
Yes. The 20% Additional Property Transfer Tax applies to foreign nationals, foreign corporations, and taxable trustees purchasing residential property in several designated regions of BC, including the Central Okanagan Regional District, which Kelowna falls within. It's on top of, not instead of, the general property transfer tax.
Can I combine the first-time buyer and newly built home exemptions?
No. You claim one exemption per property transfer, whichever you qualify for and which benefits you more. This calculator lets you compare both by switching the exemption option.