For those of you who have purchased any type of Real Estate in BC you are most likely aware of the provine's Property Transfer Tax. This is payed by everyone and applies to all Real Estate bought in the province aside from first time home buyers who meet certain criteria. Here is a break down of the tax and a link to an easy to use calculator for it.
Property Transfer Tax Rates
The amount of tax due depends on the fair market value of the property that is transferred:
- If the fair market value is $200,000 or less, the tax is 1% of the fair market value.
- If the fair market value is greater than $200,000, the tax is 1% of the fair market value up to $200,000, plus 2% on the portion of the fair market value that is greater than $200,000.
- if fair market value of property is $150,000
tax payable is: 1% of $150,000 = $1,500
- if fair market value of property is $250,000
tax payable is:1% of $200,000 = $2,000
plus 2% of $50,000 = $1,000
for total tax payable of $3,000