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How To Calculate Property Transfer Tax in Vancouver

March 18, 2012

Filed under: Vancouver — Richard Morrison @ 12:36 pm
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If you are purchasing a home in Vancouver, Canada, you will have to pay for a Property Tax Transfer or PTT. Amount of payment will basically depend on the property’s fair market value. One thing you should know about PTT is that it is not the same as property tax. A property tax is something that you will need to pay for on a yearly basis for all the property services that you may have received from the local government of Vancouver. On the other hand, PTT will have to be paid upon purchasing a property. Moreover, knowing how to calculate the property transfer tax in Vancouver, Canada is imperative and as mentioned earlier, it will be on the basis of the fair market value of a given property.

How Much Do You Have To Pay For  Transfer Tax in Vancouver property in Canada?

There is one percent property tax rate in Vancouver, Canada for the first 200,000 dollars of a property’s fair market value. Two percent tax will be charged for the remaining amount. In an instance, if you purchase a property for 120,000 dollars, it will have a taxable amount of 1,200 dollars which is one percent of its actual fair market value. If you are buying a property that’s worth 250,000 dollars, it will have a 2,000-dollar tax charge for the 200,000 dollars while the remaining 50,000 dollars will have a two percent tax of 1,000 dollars which brings it to a total of 3,000 dollars tax.

As a first-time buyer, you will be exempted on this tax calculation ruling if you are making a purchase for a property that will not go beyond 450,000 dollars. However, there are also qualifications for these first-time buyer tax exemptions such as being a permanent resident in Vancouver, Canada for at least a year.

Knowing how to calculate the transfer tax rate in Vancouver property is a must. This will help you ensure that you are paying only the right amount when purchasing a property in the said city, nothing more and nothing less.

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