First-Time Home Buyers’ Property Transfer Tax Exemption (Effective April 1, 2024)

The First-Time Home Buyers’ Property Transfer Tax Exemption provides a tax break to individuals purchasing their first home in BC. To qualify for the exemption, the buyer must meet certain eligibility requirements, and the property must meet certain criteria.

Eligibility Criteria for Buyers:

At the time of registering the property transfer, you must meet the following conditions:

1. Canadian Citizenship or Permanent Residency:

   • You must be a Canadian citizen or permanent resident of Canada.

2. Residency in BC:
   You must have lived in BC for at least one year immediately before the date you register the property. Alternatively, you must have filed at least two income tax returns as a BC resident within the last six taxation years before the registration date.

3. No Prior Ownership:
   You cannot have owned a registered interest in any property (anywhere in the world) that was your principal residence at any time in the past.

4. No Previous Exemption or Refund:
   You must not have previously received a first-time home buyer exemption or refund in any province.

Property Criteria:

To qualify for the exemption, the property you’re purchasing must meet the following criteria:

1. Use as Principal Residence:
   The property must be used solely as your principal residence (i.e., it cannot be a vacation home, investment property, or rental).

2. Fair Market Value:

   The fair market value must be $835,000 or less to qualify for the exemption.

3. Size of the Property:
   The property must be 0.5 hectares (1.24 acres) or smaller.

4. Residential Improvements:
   The property must contain only residential improvements (no commercial or industrial components).

Do I qualify for a partial exemption?

You may qualify for a partial exemption from the tax if the property:

• Has a fair market value more than $835,000 but less than $860,000 (effective April 1, 2024)
• Is larger than 0.5 hectares, and/or
• Has another building on the property other than the principal residence

Note: If you purchase the home before April 1, 2024, to receive a partial exemption, the fair market value must be more than $500,000 and less than $525,000.