When you buy a home in BC, the property transfer tax is usually the biggest cost after your down payment. It's charged when the property is registered in your name at the Land Title Office, and your lawyer or notary files the return and pays it on completion, unless you qualify for an exemption.

This page explains how the tax is worked out, with examples, plus the exemptions for first-time buyers and newly built homes. For your own number, use the official BC property transfer tax calculator (open the page and choose "Estimate your property transfer tax"), and confirm the final figure with your lawyer or notary.

Last reviewed: November 2026. Tax rates and exemptions are set by the Province of BC and can change.

How BC Property Transfer Tax Is Calculated

The tax is based on the property's fair market value on the date it's registered. In an open-market sale, that's normally the purchase price. The general rates are:

  • 1% on the first $200,000
  • 2% on the portion from $200,000 to $2,000,000
  • 3% on the portion above $2,000,000
  • plus a further 2% on the residential value above $3,000,000

Quick way to do it in your head: for a home between $200,000 and $2 million, the tax is 2% of the price minus $2,000.

Worked examples (general tax, before any exemption)
Examples only, for illustration. Not quotes and not a claim about Island prices.

Purchase price (example) Calculation General PTT
$500,000 $2,000 + 2% of $300,000 $8,000
$700,000 $2,000 + 2% of $500,000 $12,000
$950,000 $2,000 + 2% of $750,000 $17,000
$2,500,000 $2,000 + $36,000 + 3% of $500,000 $53,000
$3,500,000 (all residential) $2,000 + $36,000 + $45,000 + further 2% of $500,000 $93,000

Foreign nationals, foreign corporations and taxable trustees may also owe the additional property transfer tax (see below).

Source: Province of BC, property transfer tax.

First-Time Home Buyers' Exemption

If you qualify, you pay no property transfer tax on the first $500,000 of the price. That's a saving of up to $8,000.

You may qualify if, when the home is registered, you:

  • Are a Canadian citizen or permanent resident
  • Have lived in BC for at least a year right before registration, or filed at least two income tax returns as a BC resident in the last six tax years
  • Have never owned an interest in a principal residence anywhere in the world
  • Have never received a BC first-time home buyers' exemption or refund

And the home:

  • Will be used only as your principal residence
  • Has a fair market value of $835,000 or less for the full exemption
  • Is 0.5 hectares (1.24 acres) or smaller, with only residential improvements

Partial exemption: a reduced exemption may still apply if the home is priced above $835,000 but below $860,000, if the lot is larger than 0.5 hectares, or if there's another building on the property besides the home. Use the official calculator for the amount.

After you move in: you must move in within 92 days of registration and live there as your principal residence for the first year to keep the exemption.

Examples (first-time buyer who qualifies in full)
Examples only.

Price (example) General PTT First-time exemption You pay
$500,000 $8,000 −$8,000 $0
$700,000 $12,000 −$8,000 $4,000
$835,000 $14,700 −$8,000 $6,700

Buying acreage? Many Island acreages are bigger than 1.24 acres, so they'd only get a partial exemption. Factor that in before you shop our Vancouver Island acreage for sale.

Your lawyer or notary applies the exemption on the transfer tax return. Source: Province of BC, first time home buyers' program.

Buying a Newly Built Home?

BC newly built home exemption. If you're buying a newly built home as your principal residence, you may pay no property transfer tax when the fair market value is $1,100,000 or less, with a partial exemption up to $1,150,000. Unlike the first-time buyer program, you don't have to be a first-time buyer, but you must be a Canadian citizen or permanent resident, the property must be 0.5 hectares (1.24 acres) or smaller for the full exemption, and you must move in within 92 days and live there for the first year. "Newly built" includes a new house that hasn't been lived in, a new condo unit and a new manufactured home placed on vacant land.

Example only: on a qualifying new home at $950,000, the general tax of $17,000 would be fully exempt.

Building on a lot you bought? If you paid transfer tax on vacant land and then build your home, you may be able to apply for a refund. Ask your lawyer or notary, and see our Vancouver Island land for sale.

GST on new homes. GST generally applies to newly built and substantially renovated homes. Eligible first-time buyers may get the federal First-Time Home Buyers' GST rebate: up to 100% of the GST, to a maximum of $50,000, on new homes valued at $1 million or less, reduced gradually between $1 million and $1.5 million. Check eligibility with the Canada Revenue Agency and ask your builder whether the price includes GST.

Sources: BC newly built home exemption; CRA.

Other Taxes Island Buyers Should Know About

Additional property transfer tax (foreign buyers)

Foreign nationals, foreign corporations and taxable trustees pay an additional 20% property transfer tax on their share of residential property in certain areas of BC. On Vancouver Island, those areas are the Capital Regional District (Greater Victoria, the Westshore, the Saanich Peninsula, Sooke and the Juan de Fuca area) and the Regional District of Nanaimo (including Nanaimo, Lantzville, Parksville, Qualicum Beach, Nanoose Bay, Coombs and Errington). Federal rules may also apply to non-Canadian buyers, so get legal advice before making an offer.

Speculation and vacancy tax

This is an annual tax, not a closing cost, but it's worth knowing before you buy. It applies only in designated areas. On Vancouver Island those include the 13 Capital Regional District municipalities, plus Nanaimo, Lantzville, Parksville, Qualicum Beach, Duncan, North Cowichan, Ladysmith, Lake Cowichan, Courtenay, Comox and Cumberland. Owners in those areas must make a declaration every year, and many, such as people living in the home as their principal residence, qualify for an exemption. Check an address on the Province's taxable areas page.

BC home owner grant

Once you've moved in, you can apply for the home owner grant, which reduces the annual property tax on your principal residence. You need to apply every year. See home owner grant.

Closing Costs Checklist for Vancouver Island Buyers

Plan to have cash for these on top of your down payment. Amounts depend on the property, so ask for quotes. Your lawyer or notary can give you a full estimate for a specific home.

  • Property transfer tax: see above, less any exemption
  • Legal or notary fees and disbursements (title search, registration and so on)
  • Home inspection
  • Appraisal, if your lender asks for one
  • Title insurance, if your lender requires it or you choose it
  • Property tax and utility adjustments: repaying the seller for anything they've prepaid past your completion date
  • Strata documents for condos and townhomes, and any strata move-in fees
  • Well water testing and septic inspection on rural properties
  • Survey or site review for acreage, waterfront or bare land, if needed
  • Home insurance: your lender will need proof before funding. Rural, waterfront and wood-heated homes may need extra questions answered.
  • GST on a newly built home, if it isn't included in the price (see above)
  • Mortgage default insurance: usually added to the mortgage rather than paid in cash.
  • Moving costs, plus utilities hook-up and any immediate repairs

Keep Planning Your Purchase

This page is general information, not legal or tax advice. Your lawyer or notary prepares and files your property transfer tax return and can confirm what you'll owe.

BC Property Transfer Tax FAQ

How much is property transfer tax on a $700,000 home in BC?

The general tax is $12,000: 1% of the first $200,000 ($2,000) plus 2% of the remaining $500,000 ($10,000). A qualifying first-time buyer would save $8,000 and pay $4,000. A qualifying newly built home at that price would be fully exempt. Use the official BC calculator for your own price.

I owned a home years ago. Am I still a first-time buyer in BC?

Does the first-time buyer exemption apply to acreage?

When is property transfer tax paid, and who pays it?

Do I pay property transfer tax on a newly built home?