In British Columbia, what is the total land transfer tax on a $750,000 property purchase for a non-first-time buyer?
Correct Answer
C) $13,000
In BC, the property transfer tax is 1% on the first $200,000, 2% on the portion from $200,001 to $2,000,000, and 3% above $2,000,000. For $750,000: ($200,000 × 1%) + ($550,000 × 2%) = $2,000 + $11,000 = $13,000.
Why This Is the Correct Answer
Option C ($13,000) correctly applies BC's Property Transfer Tax tiered structure. The calculation follows the provincial rates: 1% on the first $200,000 equals $2,000, plus 2% on the remaining $550,000 ($750,000 - $200,000) equals $11,000. Total PTT is $2,000 + $11,000 = $13,000. This calculation properly applies the BC Property Transfer Tax Act rates for non-first-time buyers on properties valued between $200,001 and $2,000,000.
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