Tax Exemptions that May Apply to You: First Home Buyers'

Check if you qualify to be completely exempt from Property Transfer Tax!

Do you know if you qualify for the first time home buyers’ exemption? Property transfer tax is a tax paid by individuals when they purchase property. The government of British Columbia offers an exemption from this tax for first-time homebuyers up to a certain property value.

The exemption policy allows eligible first-time homebuyers to be exempt from paying the property transfer tax if the fair market value of the property is below a certain threshold. For example, if the fair market value is below $500,000, the first-time homebuyer may not have to pay any property transfer tax at all (100% eligibility). Additionally, there are partial exemptions (50% eligibility) available for properties valued between $500,000 and $525,000.

To qualify for this exemption, the buyer must meet certain criteria. They must be a Canadian citizen or permanent resident and have lived in British Columbia for at least 12 consecutive months immediately before the date the property is registered. Another possible qualification applies to this exemption if they have filed at least two income tax returns as a British Columbia resident in the last six years.

What is the point of this exemption? It is intended to help first-time homebuyers afford their first property purchase by reducing the financial burden associated with property transfer taxes. By providing this exemption, the government aims to make homeownership more accessible to individuals who may be entering the housing market for the first time. It's part of a broader effort to support housing affordability and encourage homeownership in British Columbia.

For more information and to check if you apply for this exemption, click on the following link: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers/current-amount.