What Is BC Property Transfer Tax? Complete 2026 Guide for Homebuyers

The tiers

The tax applies to the fair market value of the property at the time the transfer is registered at the Land Title Office, which is almost always the purchase price in an arm's-length sale.

• 1 percent on the first $200,000
• 2 percent on the portion from $200,000 to $2,000,000
• 3 percent on the portion above $2,000,000
• A further 2 percent on the portion of residential value above $3,000,000, for 5 percent on that slice

This is not the same thing as your annual property tax, which the city bills every year. Transfer tax is paid once, by the buyer, when title changes hands.

Worked examples

$750,000 townhome in Grandview Heights. 1 percent of $200,000 is $2,000. 2 percent of the remaining $550,000 is $11,000. Total $13,000.

$1,200,000 detached home in White Rock. $2,000 on the first tier, plus 2 percent of $1,000,000, which is $20,000. Total $22,000.

$2,500,000 home in Morgan Creek. $2,000, plus 2 percent of $1,800,000 ($36,000), plus 3 percent of $500,000 ($15,000). Total $53,000.

$3,500,000 waterfront home in Ocean Park. $2,000, plus $36,000, plus 3 percent of $1,500,000 ($45,000), plus the extra 2 percent on the $500,000 above $3 million ($10,000). Total $93,000.

At the top end this is a very real number, and it is the reason I tell sellers of high-value homes that buyers' offers already have the tax priced in.

First-time buyer exemption

If you have never owned a principal residence anywhere, are a Canadian citizen or permanent resident, have lived in BC for the past twelve months (or filed two BC tax returns in the last six years), and will move in within 92 days and stay at least a year, you can claim the First Time Home Buyers' exemption. On homes valued up to $835,000 it removes the tax on the first $500,000 of value, a saving of up to $8,000. You still pay 2 percent on the portion above $500,000. Between $835,000 and $860,000 the saving phases out. Above $860,000 the exemption does not apply. If only one of two buyers qualifies, only that buyer's share is exempt.

Newly built home exemption

Buying a brand-new home, including a presale, that you will live in? The Newly Built Home exemption removes the tax entirely on homes valued up to $1,100,000, with a partial exemption up to $1,150,000. You do not need to be a first-time buyer. On a $1,050,000 new townhome in South Surrey that is $19,000 you keep. Note that GST applies to new homes separately, and it is a larger number than the transfer tax saving, so budget for both.

The foreign buyer tax

Buyers who are not Canadian citizens or permanent residents pay an additional 20 percent of the fair market value on residential property in Metro Vancouver, the Fraser Valley Regional District, the Capital Regional District, the Central Okanagan and the Nanaimo Regional District. White Rock and South Surrey fall under Metro Vancouver. This sits on top of the federal prohibition on most non-Canadians buying residential property, which has its own rules and exceptions. Anyone in that position needs a lawyer before writing an offer, not after.

How and when you pay

Your lawyer or notary calculates the tax, files the return and pays it from the funds you deliver before completion, along with your down payment and the other closing costs. It cannot be financed by your lender. This is why I ask buyers early on how much cash they will have after the down payment. A buyer with exactly 10 percent saved for a $900,000 home does not have a down payment of $90,000. They have about $74,000 once the transfer tax and legal fees come out, and that changes the mortgage.

The short version

• 1 percent to $200,000, 2 percent to $2 million, 3 percent above, 5 percent on residential value above $3 million.
• First-time buyers: no tax on the first $500,000 for homes up to $835,000, phasing out by $860,000.
• New homes: fully exempt to $1.1 million, partial to $1.15 million, for anyone who will live there.
• Non-residents: an extra 20 percent in Metro Vancouver and the Fraser Valley.
• Paid in cash on completion through your lawyer. Plan for it before you set your budget.

If you want to know what the tax will be on a specific home and which exemption you qualify for, send me the address and your situation. It takes two minutes and it changes which listings make sense.