The 2024 BC Budget includes changes to the Property Transfer Tax Act (PTT), as well as a new property flipping tax (Flipping Tax). Three changes were made to specific PTT exemptions.
First, the fair market value threshold for the First Time Home Buyer (FTHB) exemption was increased. Prior to April 1, 2024, the FTHB exemption applies to properties with a fair market value of less than $500,000, with a partial exemption for properties with a FMV of $500,000 to $525,000. As of April 1, 2024, the FTHB exemption will apply to properties in a different way. For properties with a FMV of less than $835,000, PTT is not payable on the first $500,000, but payable on the difference between the FMV and $500,000. For example, if the FMV of the property is $700,000, PTT paid would be 2% of $200,000 ($700,000 less $500,000). This is an effective saving of $8,000 for properties less than $835,000. If the property has a FMV between $835,000 and $860,000, then a partial exemption applies, on a sliding scale. See the FAQ’s below and table for further information. If the FMV of the property is over $860,000, then there is no FTHB PTT exemption.
Second, the FMV threshold was increased for the Newly Built Home (NBH) exemption. Effective April 1, 2024, the FMV threshold to claim the NBH Exemption will be increased from $750,000 to $1,100,000. A partial exemption is also available for properties with a FMV just above the threshold. The phase out range is $50,000 above the threshold, so properties with a FMV of greater than $1,150,000 will not be able to claim the NBH Exemption.
The 2023 BC Budget includes a new limited exemption for purpose built rental buildings, that may limit the tax payable on values over $3,000,000. Budget 2024 builds on this exemption and provides an exemption from PTT on purchases of new qualifying purpose-built rental buildings.
Finally, the BC Government introduced a new tax targeting home flipping activity and short-term speculation, which will officially begin on January 1, 2025. This tax will apply on the sale of residential property held by an owner for less than two years, with the seller being taxed up to 20% of the profit from the sales. To specify, properties sold within 1 year are taxed at 20%, and will decline to zero between 366 and 730 days. Exemptions may apply in certain circumstances.
The following frequently asked questions are dated as of March 12, 2024, and is provided based on a review of the current materials available. No legislation has been passed and we will update this page as more information is available.
The completion date is the only date that matters. If a contract was entered into in February 2024 for a pre-sale unit that closes after April 2024, the NBH exemption would apply, assuming the price falls within the limit. The same rule applies for First Time Home Buyer (FTHB) exemption, however with a different price limit.
No, PTT exemptions are not retroactive.
There are no provisions in the new legislation which would change the current practice of a FTHB spouse purchasing with a non-FTHB spouse and claiming a partial FTHB exemption.
GST is not included in the purchase price for the purposes of calculating PTT.
Although not yet confirmed by the BC Government, the table below describes the amount of exemptions based on the FMV of the property. Please use our PTT calculators for exact amounts.
| PURCHASE PRICE | EXEMPTION | GROSS PTT | NET PTT |
| $500,000 | $8,000 | $8,000 | $0 |
| $550,000 | $8,000 | $9,000 | $1,000 |
| $600,000 | $8,000 | $10,000 | $2,000 |
| $650,000 | $8,000 | $11,000 | $3,000 |
| $700,000 | $8,000 | $12,000 | $4,000 |
| $750,000 | $8,000 | $13,000 | $5,000 |
| $800,000 | $8,000 | $14,000 | $6,000 |
| $835,000 | $8,000 | $14,700 | $6,700 |
| $840,000 | $6,400 | $14,800 | $8,400 |
| $845,000 | $4,800 | $14,900 | $10,100 |
| $850,000 | $3,200 | $15,000 | $11,800 |
| $855,000 | $1,600 | $15,100 | $13,500 |
| $860,000 | $0 | $15,200 | $15,200 |
BC Flipping Tax is a 20% taxation on the gain from houses sold within 1 year, and a sliding scale from 365 to 730 days of ownership. Currently, details of the sliding scale is not specified by the BC Government.
Yes, the BC Flipping Tax will apply to all properties sold on or after January 1st, 2025, and held for less than two years.
Not for the purposes of the BC Flipping Tax, however this should be discussed in more detail with your accountant.
It is currently proposed and is subject to legislative approval, however the NDP have a majority government and the tax is likely to be approved by the legislature.
Currently, this does not fit within an exemption. The government has stated that the purpose of this tax is to support housing supply, not impede it. Exemptions will be provided for those who add to the housing supply and that the list of exemptions is not exhaustive. This may expand in the future.
The current guidance does not support this, any properties sold on or after January 1st, 2025, will be subject to the BC Flipping Tax.
Income earned from the sale of properties located on reserve lands, treaty lands and lands of self-governing Indigenous Nations will not be subject to this tax.
Yes, the BC Flipping Tax is in addition to the federal residential flipping tax, which turns taxation on property into business income, not capital gains.