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A small bit of good news for first time buyers: An increase in the Property Transfer Tax exemption threshold for first-time buyers, announced in BC Provincial Budget 2017. The increase, to $500,000 from $475,000, takes effect today.


This change will make a difference for a lot of people. Since many of the first time buyers are now shopping in the $500k range, they can now benefit from the exemption. At the previous threshold, if they purchased at $500k, they would have had to pay the full amount of 1% on the first $200,000 and 2% on the balance. Even though it was a sliding scale after the $475k previous exemption threshold, the scale was steep and fast.


For more info on exemptions and the Property Transfer Tax in general, click here to visit: The Governemnt of BC 

 

Land transfer tax rates in British Columbia – Updated in 2016
 
Purchase priceMarginal tax rate
First $200,000 1.0%
On $200,000 to $2,000,000 2.0%
Over $2,000,001 3.0%

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