An eligible first-time home buyer in BC buys a resale home with a fair market value of $510,000. How much Property Transfer Tax do they pay?
Correct Answer
C) $200
The full tax is 1% of $200,000 ($2,000) plus 2% of $310,000 ($6,200) = $8,200. The first-time buyers' exemption removes the tax on the first $500,000 ($8,000), so the buyer pays $200.
Why This Is the Correct Answer
Tax on $510,000 is $8,200. The exemption covers the tax on the first $500,000, which is $8,000. The remaining $10,000 is taxed at 2%, leaving $200.
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A Canadian citizen purchases a home in BC for $450,000. What is the total Property Transfer Tax payable?
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A foreign national who falls within an exception to the federal ban on home purchases by non-Canadians and qualifies for no BC exemption from the additional tax buys a $3,000,000 residential property in Metro Vancouver, a specified area. What is the total of the general Property Transfer Tax and the additional (foreign buyers) tax?