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.