Did you know that BCREA has an online tool to help you and your clients determine the taxes payable on the purchase of property in BC? Three calculators are available for your use, and they're now also accessible on your mobile device.
When a property is purchased, the potential amount of tax to be paid can vary greatly. These calculators indicate how much Goods and Services Tax (GST) and Property Transfer Tax (PTT) should be charged, less any PTT exemptions (for first-time homebuyers and/or newly-built homes), as well as any eligible federal rebates, and estimate the total costs.
There are three calculators. Simply start with a purchase price that either:
- includes sales taxes, net of available rebates,
- includes full sales taxes, or
- does not include sales taxes.
To view these calculators, click here. To view the new mobile version, which combines all three of BCREA's calculators into one, click here. You can also save the page as a bookmark which enables the calculator to be used offline.
Were you also aware that changes were recently made to the PTT? With the 2016 BC Budget, the following changes were made:
- Newly-constructed homes used as principal residences, up to $750,000, are exempt from the PTT. A partial exemption is available for new homes up to $800,000. This is for all buyers, not just first-time buyers. For more information, click here.
- The PTT rate was increased to 3% on the portion of a property's fair market value above $2 million. Rates of 1% on the first $200,000 of a property's fair market value and 2% on the fair market value between $200,000 and $2 million will continue to apply. For more information, click here.
Although these changes are a step in the right direction, the PTT still negatively impacts housing affordability in BC and BCREA therefore has recommendations to the provincial government on potential improvements. To view BCREA's recommendations, click here