Whenever there is a transfer of title on B.C. property, the property transfer tax process is triggered. The property transfer tax rate is:
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
- 3% on the portion of the fair market value greater than $2,000,000, and
- If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000
However, there are many exemptions in place to eliminate or reduce the amount of property transfer tax you will pay such as the principal residence exemption (transfers to spouses and children) and the first-time home buyers’ program which helps reduce the amount of taxes you pay. It is a good idea to talk to lawyer to determine if an exemption applies to your case.