The Property Transfer Tax (PTT) is charged at a rate of:
- 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, and
- 3% on the portion of the fair market value greater than $2,000,000.
If you’re a foreign entity or taxable trustee and the residential property is located in Metro Vancouver (also known as the Greater Vancouver Regional District), you also pay the 15% additional property transfer tax unless you have a Canadian work permit through the BC Provincial Nominee Program. The exemption began March 17, 2017.
The Property Transfer Tax (PTT) is costly to home buyers. The PTT was introduced in 1987 as a wealth tax by the BC government to discourage speculation at the high end of the real estate market.
Then the $200,000 price threshold covered 95% of all homes sold. Just 5% of all sales had the 2% portion of the PTT applied.
Today, 96% of homes in Greater Vancouver sell for more than $200,000. If the 2% portion of the PTT was applied to just the top 5% of all home sales (as originally intended), the $200,000 threshold would have to be raised to more than $1.4 million.