Real Estate Transaction Taxes in BC

Property transfer tax (PTT) is a provincial tax paid by the buyer when the change of ownership is registered at the Land Title Office. Your lawyer or notary files the property transfer tax return and pays the tax from your funds on completion. It is based on the property's fair market value, which is usually the purchase price.

Unlike GST on a new home, which is part of the purchase price and can be financed in your mortgage, property transfer tax has to be paid from your own money. On a typical Victoria purchase it is often the largest closing cost after the down payment.

The federal 5% GST applies to newly built homes and to homes that have been substantially renovated, meaning most of the interior has been removed or replaced. It does not apply to the resale of a used home. BC does not charge provincial sales tax on the purchase of a home, and there is no HST in BC.

First-Time Home Buyers' GST Rebate

For eligible first-time buyers, this rebate removes the full GST, up to $50,000, on a new or substantially renovated home worth up to $1,000,000, and a reduced amount on homes between $1,000,000 and $1,500,000. It applies to agreements signed on or after March 20, 2025 and to owner-built homes started on or after that date. The Canada Revenue Agency began accepting applications in 2026.

• At least 18, a Canadian citizen or permanent resident, and buying the home as your primary residence
• You have not lived in a home that you or your spouse or common-law partner owned in the current year or the previous four years
• Construction must start before 2031 and be substantially complete before 2036

GST New Housing Rebate

Buyers who do not qualify as first-time buyers may still get back 36% of the GST, up to $6,300, on a new home priced up to $350,000, with a reduced rebate up to $450,000. Above that there is no rebate, so in most of Greater Victoria the full 5% applies. Builders sometimes credit the rebate on completion; otherwise you apply to the Canada Revenue Agency.

Other GST situations

• Rental purchases: the New Residential Rental Property Rebate works on the same price limits, and you apply after completion.
• Presale assignments: GST generally applies to the assignment fee when you sell your contract before completion.
• Vacant land: usually exempt when an individual sells land held for personal use, but taxable in some cases, such as land sold in the course of a business or new lots from a subdivision.
• Services: GST also applies to real estate commissions and legal fees.

First-Time Home Buyers' GST rebate | GST New Housing Rebate

Foreign nationals, foreign corporations and taxable trustees pay an additional property transfer tax of 20% of the residential value, on top of the regular tax, when they buy in a specified area of BC. The Capital Regional District, including all of Greater Victoria, is a specified area, along with Metro Vancouver, the Fraser Valley, the Central Okanagan and the Nanaimo region. On a $1,000,000 home that is an extra $200,000.

Refunds or exemptions are limited, for example for a buyer confirmed under the BC Provincial Nominee Program, or a buyer who becomes a Canadian citizen or permanent resident within a year of the purchase.

The speculation and vacancy tax is an annual provincial tax based on how a home is used, not a one-time transaction tax. Every owner of residential property in a taxable area must file a declaration each year, even if they are exempt; if you do not declare by March 31, the exemption is not applied and the full tax is assessed. More than 99% of British Columbians are exempt.

Where it applies in Greater Victoria

Victoria, Saanich, Oak Bay, Esquimalt, Langford, Colwood, View Royal, Central Saanich, North Saanich, Sidney, Sooke, Metchosin and Highlands. The Juan de Fuca electoral area, Salt Spring Island and the Southern Gulf Islands are not included. Victoria-area municipalities have no separate municipal empty homes tax.

Main exemptions

• The home is your principal residence
• It is rented long term, generally for at least six months of the year in periods of 30 days or more
• Special circumstances, such as a recent purchase, a home under construction, medical care, separation or a death

Rates are a percentage of the property's assessed value. BC residents who are Canadian citizens or permanent residents and who do not qualify for an exemption get a non-refundable credit of up to $4,000 per year from 2026 (up to $2,000 before then). Speculation and vacancy tax details

Every owner pays annual property tax to their municipality, which includes the provincial school tax. In most Greater Victoria municipalities it is due in early July. On completion, your lawyer or notary adjusts for any tax the seller has already paid, so each side pays for the days they own the home.

Owners who live in their home can reduce the bill with the provincial home owner grant, which must be claimed every year. For 2026 the full grant is available on homes assessed at up to $2,075,000, with a larger additional grant for seniors, veterans and people with disabilities; from 2027 the regular grant is $570 across BC. Owners who qualify can also defer their property taxes through a provincial loan program.

Other things to know

• Additional school tax: homes assessed above $3 million pay extra school tax on the value above that. The rates rise in 2027 to 0.3% on the value from $3 million to $4 million and 0.6% above $4 million.
• Underused housing tax: this federal tax has been eliminated, and no tax or return is required for 2025 and later years. Returns for 2022 to 2024 are still required.
• PST on real estate services: since October 1, 2026, 7% PST applies to real estate services for non-residential property. Buying or selling a home is not affected.

Home owner grant | Property tax deferment