BC property transfer tax and the first-time buyer exemption

The first-time home buyers’ exemption can cut your BC property transfer tax (PTT) to nothing on a lower-priced home, or save you $8,000 on a mid-priced one. This page explains the rule in plain language, with worked examples calculated from the same numbers as the closing costs calculator.

What the property transfer tax is

PTT is a one-time provincial tax the buyer pays when a property is registered, based on its fair market value. The rates are 1% of the first $200,000, 2% from $200,000 to $2,000,000, 3% above $2,000,000, and a further 2% on the residential value above $3,000,000. On $650,000 that is $11,000: $2,000 on the first $200,000 plus 2% of the other $450,000.

How much the first-time buyer exemption saves

For properties registered on or after April 1, 2024, the exemption depends on the fair market value:

• $500,000 or less: the whole tax is exempt, so you pay nothing.
• Over $500,000 up to $835,000: a flat $8,000 comes off, which is the tax on the first $500,000.
• Between $835,000 and $860,000: the $8,000 shrinks in a straight line, $8,000 × ($860,000 − price) ÷ $25,000.
• $860,000 or more: no exemption.

Resale homes, for a buyer who qualifies as a first-time buyer, using the calculator’s own logic:

Between $835,000 and $860,000 the exemption disappears quickly: at $850,000 you save $3,200, at $860,000 nothing.

Who qualifies

This is a summary of the Province’s conditions (its page was last updated June 20, 2025 when we read it on October 26, 2026). Read the full list on the first time home buyers’ program page before you rely on it. At registration you must:

• be a Canadian citizen or permanent resident;
• have lived in B.C. for at least a year immediately before registration, or have filed at least 2 income tax returns as a B.C. resident in the last 6 taxation years;
• have never owned a registered interest in a property that was your principal residence anywhere in the world, and never received a first time home buyers’ exemption or refund.

The property must be used only as your principal residence, be worth $835,000 or less for the full $8,000 exemption (partial up to $860,000), be 0.5 hectares or smaller, and contain only residential improvements.

Buying a newly built home: a different exemption

Separately, the newly built home exemption is open to any buyer, not only first-time buyers. For a qualifying new home the whole tax is exempt up to $1,100,000, then the exemption fades to nothing at $1,150,000. You cannot claim it together with the first-time buyer exemption, so you take the larger. In practice the newly built exemption is the bigger one at every price up to $1,150,000.

Whether a home counts as newly built (never lived in, first registration since completion) is for you and your lawyer or notary to confirm. GST on new homes is separate; see closing costs in BC.

Sources

• gov.bc.ca - Property transfer tax. Checked October 26, 2026.
• gov.bc.ca - First time home buyers' exemption amounts. Checked October 26, 2026.
• gov.bc.ca - Newly built home exemption. Checked October 26, 2026.
• Property Transfer Tax Act, ss. 12.01, 12.02 and 12.10 (BC Laws).

Every figure on this page comes from data/rules.json, the same file the calculators use, so the page and the tools always agree. Rules last verified: October 26, 2026. See how the calculators work.