What is the Property Transfer Tax (PTT) rate on the first $200,000 of a property's fair market value in British Columbia?
Correct Answer
A) 1%
BC's Property Transfer Tax is calculated at 1% on the first $200,000 of fair market value, 2% on the portion between $200,000 and $2,000,000, 3% on the portion between $2,000,000 and $3,000,000, and 5% on amounts exceeding $3,000,000.
Why This Is the Correct Answer
Option A is correct because BC's PTT rate on the first $200,000 of fair market value is 1%. This is the lowest bracket in the progressive PTT structure. The explanation in this question also reveals the full bracket structure: 1% up to $200K, 2% from $200K to $2M, 3% from $2M to $3M, and 5% on amounts above $3M (for residential properties).
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