Everyone in B.C. pays a Property Transfer Tax on each home purchase unless you are a first time home buyer and meet certain criteria.
Do not confuse this tax with your yearly property taxes.
If you are not considered to be a first time homebuyer, you will be charged:
1% on the first $200,000
2% on the balance of the purchase price of the property
First time home buyers are exempt from this tax if your purchase is under the ceiling price of $425,000 in Greater Vancouver. There is however, a soft cap of $450,000 in which only some of the Property Transfer Tax must be paid.
Examples of Property Taxes due without a first time home buyer exemption:
i.e. Purchase Price:
$276,000 = $3,520
$300,000 = $4,000
$325,000 = $4,500
This amount must be paid to your conveyance lawyer at the time the application to register a transfer is presented to the Land Title Office (on the completion date of your purchase). The conveyance lawyer also handles the documents to fill out regarding this tax.
If registration of the title is to be as joint tenants and only one of you is eligible to apply for the exemption, then you would only have to pay one half of the tax.
i.e. Purchase price is: $250,000
Your Property Transfer Tax is 1% of the first $200,000 and 2% on the balance, which comes to $3,000.
As just one of the buyers is eligible, deduct 50% of $3,000
Therefore you Property Transfer Tax is $1,500