The BC Government has announced amendments in the budget to provide for Property Transfer Tax (“PTT”) Exemptions, particularly for first-time buyers and those looking at newly built homes. Starting April 1, 2024, more people will be able to take advantage of the Property Transfer Tax Exemptions as outlined below.
The recent budget announcement has brought a welcome change: the exemption threshold will increase from a fair market value of $500,000 to $835,000, effective April 1, 2024. This exemption will be available for purchase of a residential Property by First time home Buyers (“FTHB”).
This adjustment means that FTHBs purchasing a property at or below this new threshold will not have to pay any property transfer tax up to the first $500,000 of their purchase price. So the maximum PTT exemption amount remains the same at $8,000. The PTT exemption on a Property with FMV under $5,000 will be calculated at the General Tax Rate as mentioned below. Here’s a table summarizing the rules:
| Criteria | Old Scheme (Until March 31, 2024) | New Scheme (Effective April 1, 2024) |
| Full Exemption threshold (Based on FMV of Property) | Up to $500,000 | Up to $835,000 |
| Partial Exemption threshold (Based on FMV of Property) | $500,001 – $525,000 | $835,001 – $860,000 |
| No Exemption threshold (Based on FMV of Property) | Above $525,001 or more. | $860,001 or more. |
| Maximum Exemption Amount | Approximately $8,000 (On a property valued at $500,000, decreasing to zero at $525,000) | Approximately $8,000 (On a property valued at $835,000, decreasing to zero at $860,000) |
The General PTT in BC is calculated on the fair market value (“FMV”) of the Property as follows:
Under the current scheme, you get full exemption from paying PTT of $8,000, if you purchase a home valued up to $500,000, provided you meet the eligibility conditions. For homes valued between $500,000 and $525,000, a partial exemption applies, offering some relief on a sliding scale. However, for properties that exceed $525,000, no exemption is available under this program, making first-time buyers liable for the full PTT.
This adjustment means properties valued under $835,000 will be exempt for the PTT calculated on the first 5,00,000of the F.M.V.
The newly built home exemption exempts qualifying purchasers from property transfer tax for the purchase of a principal residence. Effective April 1, 2024, the fair market value threshold is increased from $750,000 to $1,100,000. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying newly built homes. The exemption applies to those who purchase new homes valued under the program threshold and meet program criteria. On average, individuals with sufficient income or wealth to purchase a new home have higher incomes than renters. The increased threshold will primarily benefit qualifying purchasers in urban areas.
Effective for transactions that occur between January 1, 2025, and December 31, 2030, purchases of new qualifying purpose‑built rental buildings will be exempt from the general property transfer tax. Purpose‑built rental buildings are those that are non‑stratified and held as rentals, on a monthly basis or longer, for at least 10 years. The residential portion of the building must be entirely used for rental purposes and have at least four apartments. This exemption builds on the further two per cent property transfer tax exemption for new purpose‑built rentals announced in Budget 2023 and the rental housing revitalization tax exemption provided in Budget 2018. It further encourages the construction of new purpose‑built rental buildings to address housing affordability. Benefits
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