New Property Transfer Tax Exemption

New Property Transfer Tax Exemption

Newly built home exemption:

• Full exemption: Effective April 1, 2024, the fair market value threshold for a full exemption for newly built homes is increased from $750,000 to $1,100,000.
• Partial exemption: A partial exemption is also available for properties with fair market values just above the threshold. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying purchasers.

To qualify:

• The property (land and improvement) transfer must be registered at the Land Title Office after February 16, 2016, and
• This must be the first registration of this property with a completed improvement, and
• You must be a Canadian citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) or proof of permanent residency and your birthdate)

and the property must:

• Be located in B.C.
• Only be used as your principal residence
• Have a fair market value of $1,100,000 or less ($750,000 if the title is registered before April 1, 2024)
• Be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption, if the property:

• Has a fair market value greater than $1,100,000 and less than $1,150,000 (greater than $750,000 and less than $800,000 if title is registered before April 1, 2024)
• Is larger than 0.5 hectares
• Has another building on the property other than the principal residence

First time home buyers' program:

To qualify for an exemption, at the time the property is registered you must:

• Be a Canadian citizen or permanent resident

Have either:

• Lived in B.C. for at least a year immediately before the date you register the property
• Filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years immediately before the registration date
• Have never owned a registered interest in a property that was your principal residence anywhere in the world at any time
• Have never received a first time home buyers' exemption or refund

And the property must:

• Only be used as your principal residence
• Have a fair market value of $835,000 or less (effective April 1, 2024)
• Be 0.5 hectares (1.24 acres) or smaller, and
• Contain only residential improvements

If all of the above requirements are met, then the purchaser will be exempt from property transfer tax on the first $500,000 of the purchase price of the property.

Source: Government of BC.