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
|Purchase price||Marginal tax rate|
|On $200,000 to $2,000,000||2.0%|