Real Estate Law
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When you buy a home in British Columbia, you usually pay property transfer tax when the transfer is registered at the Land Title Office. The general rates are 1% on the first $200,000, 2% up to $2 million and 3% above that, with an extra 2% on residential value over $3 million. Eligible first-time buyers can avoid tax on up to $500,000 of value if the home is worth $835,000 or less, with a partial exemption up to $860,000.
Last updated: October 29, 2026
Property transfer tax is a British Columbia tax charged when a change in ownership of land is registered at the Land Title Office. Most people meet it when they buy a house, condo or townhouse. The tax is set out in the Property Transfer Tax Act, RSBC 1996, c 378 (the “Act”) and the Property Transfer Tax Regulation, BC Reg 74/88 (the “Regulation”).
The tax is based on the fair market value of the property on the registration date. In an ordinary purchase between unrelated people, that is usually the purchase price.
If you are buying on the North Shore, in North Vancouver, West Vancouver or anywhere in Metro Vancouver, property transfer tax is often one of the largest closing costs after the down payment. It is worth estimating early, before you write an offer.
The buyer pays. The Act calls the buyer the “transferee”. Under section 2(1) of the Act, when an application is made to register the transfer at a land title office, the transferee must pay the tax and file a property transfer tax return, even if the purchase is fully exempt.
In practice, your lawyer or notary prepares the return and submits it with the transfer documents on the completion date. The tax is paid from your closing funds, so it has to be in your budget before completion day.
Section 3(1) of the Act sets marginal rates, much like income tax brackets. Each rate applies only to the part of the value inside that bracket:
Example: for a home with a fair market value of $1,000,000, the tax is 1% of $200,000 ($2,000) plus 2% of $800,000 ($16,000), for a total of $18,000. This example ignores any exemption.
Section 4(1) of the Act defines a “first time home buyer”. On the registration date, you must:
The property must also qualify. Under section 4(1), the “qualifying value” is $835,000:
Under section 5(1.01), the exemption applies to the lesser of the property’s value and $500,000. In plain terms, it removes the tax on up to the first $500,000 of value, which is a saving of up to $8,000. A first-time buyer of an $800,000 home still pays tax on the value above $500,000.
Under section 8(2)(a) of the Act, you must move into the home as your principal residence within 92 days after registration and keep living there until at least the first anniversary of registration.
If you do not qualify, or you do not meet these conditions, section 9 generally requires you to pay back the tax that was exempted. If the only problem is that you moved out before the first anniversary, the repayment is reduced based on the number of days you lived there. Section 10 provides exceptions if the buyer dies, or if the home is transferred under a written separation agreement or a court order under the Family Law Act.
Sections 12.01 and 12.02 of the Act provide a separate exemption for a newly built home bought by a Canadian citizen or permanent resident. You do not need to be a first-time buyer for this one.
Under section 2.02 of the Act, an additional tax applies where a buyer is a “foreign entity” (a foreign national or foreign corporation) or a “taxable trustee”, and the residential property is in a specified area. The specified areas include the Metro Vancouver Regional District, which includes North Vancouver. Section 17.01 of the Regulation adds the Capital, Central Okanagan, Fraser Valley and Nanaimo regional districts.
Section 17.02 of the Regulation sets the rate at 20% of the taxable amount. This is in addition to the general property transfer tax.
Learn more about how Pax Law Corporation helps with a residential real estate purchase and residential conveyancing in BC.
If more than one person is buying, ask your lawyer how each buyer’s status affects the exemption before you decide how to hold title. If your circumstances change after completion, get advice before you move out or sell.
If a buyer gives a false or misleading declaration about prior home ownership or a prior exemption, section 12(1) of the Act allows a penalty equal to the exemption claimed, in addition to the tax owing. Under section 18(4), assessed tax must be paid within 30 days of the notice of assessment, and section 18.1(1) adds interest on unpaid amounts.
Speak with a lawyer before you sign a contract of purchase and sale, especially if:
Pax Law Corporation helps buyers and sellers with real estate law and residential conveyancing across British Columbia from its North Vancouver office on Lonsdale Avenue.
The buyer (the “transferee”) pays when the transfer is registered, under section 2(1) of the Property Transfer Tax Act.
It is paid when the application to register the transfer is made at the Land Title Office, which is normally the completion date.
Without any exemption, it is $18,000: 1% of the first $200,000 plus 2% of the remaining $800,000.
The exemption is full for homes with a fair market value of $835,000 or less and phases out completely at $860,000.
No. It applies to up to $500,000 of value, so the maximum saving is $8,000. Tax is still payable on value above $500,000.
Usually not. The Act requires that you have never held an interest in a principal residence in British Columbia or elsewhere.
You must be a Canadian citizen or permanent resident on the registration date.
Within 92 days after registration, and you must live there until at least the first anniversary.
You may have to repay some or all of the exempted tax. If moving out early is the only problem, the repayment is reduced based on the days you lived there.
Yes. Citizens and permanent residents may qualify for a newly built home exemption up to $1,100,000, phasing out at $1,150,000.
Yes. North Vancouver is within the Metro Vancouver Regional District, which is a specified area. The rate is 20% of the taxable amount.
Yes. Section 2(1) requires a return whether or not the transaction is exempt.
Yes. A false or misleading declaration can lead to a penalty equal to the exemption claimed, plus the tax owing.
If you are buying or selling a home in British Columbia and want help understanding property transfer tax, Pax Law Corporation can review your transaction with you.
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General information only, not legal advice. This article and video provide general information about British Columbia property transfer tax as of the date above. Rules change and every situation is different. Reading this article does not create a lawyer-client relationship. Speak with a lawyer about your own circumstances before you act.
The information presented is for informational and educational purposes only and may not be accurate. This information does not replace getting legal advice from a qualified, practicing lawyer. If you are facing a legal dilemma, you should make an appointment and consult with one of our licensed and practicing lawyers.
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