How is the Property Transfer Tax (PTT) generally calculated and what exemptions are available?
Generally, the tax is triggered at the time an interest in land is transferred and calculated as 1% of the first $200,000, plus 2% of the balance of its market value. There are a variety of exemptions for non-arm’s length transactions but the one most commonly used for unrelated parties is that offered by the First-Time Home Buyer program. For greater detail and additional FAQ’s about the PTT, we recommend a visit to the PTT info pages of the BC Government site. How is the Property Transfer Tax calculated for Pre-Sold strata units? Basically, pre-sold units are those where the purchase contract is made with the developer before the strata plan is filed, sometimes months or years ahead of title transfer. In order for purchasers of pre-sold strata units to properly anticipate their PTT obligations, the Ministry amended the Act in 2004. Accordingly, the PTT for such units is calculated as 1% of the first $200,000 plus 2% of the balance of net consideration paid rather than market value an
