**** PLEASE NOTE – This Calculator is for entertainment purposes only and cannot be relied upon for making actual GST calculations. *****
British Columbia Goods and Services Tax for Properties & Property Transfer Tax Calculator
During the Summer of 2011 BC, voters by a margin of 55% rejected the Harmonized Sales Tax in favour of the Goods and Services Tax.
There is a huge amount of confusion surrounding taxes on property sales here in BC.
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I get so many questions on this topic that I have added this BC GST Rebate and PTT Calculator to my website to try to dispel some of the confusion surrounding taxes and real estate in BC.
Looking for HST Calculations? Check out this HST Calculator!
What is the Goods and Services Tax (GST) on Real Estate in BC?
The BC GST for a property is a 5% Federal tax that is payable on the sale of brand new properties in British Columbia. This means newly constructed properties sold by a developer or an owner builder. This also means that presale condos that are both bought from the developer or from another investor as an assignment of contract are subject to BC GST.
Is there a Rebate of BC GST for Real Estate?
Yes. For homes under $350,000 that the buyer intends on living in, there is a full 36% rebate of the GST referred to at the G.S.T. New Housing Rebate. Property purchases between $350,000 and $450,000 is gradually reduced to nothing. Homes over $450,000 get no GST New Home Rebate.
Is there a BC GST Rebate for Rental Properties?
Yes. For new properties a buyer intends to rent out, there may also be a rebate available referred to as the GST New Residential Rental Rebate (GST NRR Rebate). As with the GST New Housing Rebate, the full GST NRR Rebate is only available for new properties under $350,000 and a partial rebate is available for properties priced between $350,000 and $450,000. There is no rebate for properties over $450K
- To qualify for this rebate the Buyer must meet certain conditions which include:1. the Purchaser must not be entitled to claim input tax credits in respect of any part of the tax payable on the acquisition of the rental unit.
- The rental unit must be a “qualifying residential unit” which means the person applying for the rebate must be the owner of the unit and the unit must be a self contained residence as defined in the Excise Tax Act;
- The property must be held by the owner for the purpose of making exempt supplies (for example, a residential tenancy)
- The property must be used as a primary place of residence by the tenants and must be so used for at least one year and the Purchaser will have to provide a copy of the tenancy agreement showing a term of at least one year.
How is the BC GST on property sales calculated?
BC GST is calculated on the purchase price of the property as laid out in the Contract of Purchase and Sale.
Is BC GST payable on all property transactions?
No, only new properties are subject to BC HST.
What is the Property Transfer Tax (PTT) in BC?
Property Transfer Tax or PTT is a tax on the transfer of ownership of properties in BC.
British Columbia’s Property Transfer Tax is payable on the fair market value as follows:
- 1% on the first $200,000.
- 2% between $200,000 and $2,000,000.
- 3% on the amount of the fair market value above $3,000,000.
- 5% on the fair market value above $3,000,000
Is there a PTT exemption for First Time Home Buyers in BC?
Yes, buyers who are BC residents and have not purchased a property anywhere in Canada or the world are are not required to pay PTT when buying a property in British Columbia under $500,000.
For more details on who pays PTT and when have a look at this post on the Property Transfer Tax in BC.
When is GST payable on Real Estate Transactions in BC?
Upon Completion of the Contract of Purchase and Sale at the Land Titles Office.
When is PTT Payable on Property Sales in British Columbia?
Again, upon Completion of the Contract of Purchase and Sale (Subject Free Accepted Offer) at the Land Titles Office.
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