After a long wait, the Property Transfer Tax amounts have been updated to help buyers reduce the amount of taxes they need to pay! These changes take effect April 1, 2024. There are a number of different exemptions, but the two we deal with the most are the First Time Home Buyer's Program and the Newly Built Home Exemption.
The ceiling exemption of Property Transfer Tax (PTT) for First Time Homebuyers has been raised above $500,000. The BC Government has yet to clarify the exact specifics, but it appears that first time buyers will now be able to qualify for a partial PTT exemption on homes up to $835,000. There is, however, a maximum tax rebate of $8,000. In the past, homes purchased for less than $500,000 qualified for a one time full exemption of the PTT. Purchases above $525,000 received no tax break whatsoever and the $25,000 range between $500-525,000 qualified for partial rebate. The easiest way to understand the new increase is that purchases up to $835,000 will now qualify for the same tax break that previously only applied to purchases under $500,000. It would have been nice to get a full exemption for this segment of buyer but hey, let’s take what we can get!
The Newly Built Home Exemption has been raised from $750,000 to $1.1 Million. This is a provincial incentive that will completely waive the Property Transfer Tax on purchases of brand new homes. When combined with some of the GST rebates that are still available federally, this spells meaningful savings for those with an eye on new construction. While the end consumer is the main benefactor, this incentive hopes to encourage more new construction.
You can find out more about these exemptions, and more, on the Government of BC's website.
As with all things pertaining to tax, it is important to talk to both a lawyer and accountant if you think you might qualify. Like most things; if you do not ask, you will not know.
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