PTT Facts

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 the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000.

If the property is classified as residential and farm, or is residential mixed class (such as residential and commercial), you pay the further 2% tax only on the residential portion of the project.

If you’re a foreign entity or taxable trustee and the residential property is located in Metro Vancouver, you also pay the 15% additional property transfer tax unless you have a Canadian work permit through the BC Provincial Nominee Program.

The Property Transfer Tax (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.

 

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