In British Columbia, what is the general Property Transfer Tax rate for residential property purchases up to $200,000?
Correct Answer
B) 1% of the fair market value
In BC, the Property Transfer Tax rate is 1% on the first $200,000 of the fair market value of the property. This is the base rate that applies to most residential property transfers in the province.
Why This Is the Correct Answer
In British Columbia, the Property Transfer Tax (PTT) is structured with a tiered rate system. For the first $200,000 of fair market value, the rate is 1%. This is the foundational rate that applies to all residential property transfers in BC. The rate increases to 2% for the portion of value between $200,000 and $2,000,000, and 3% for amounts over $2,000,000. The 1% rate on the first $200,000 is a key component of BC's property transfer tax structure.
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