Calculating the tax on your purchase can be a difficult task. The taxing rate changed February 21, 2018, and is now as followed
1% on the 1st $200,000
2% on the amount greater than $200,000 up to and including $2,000,000
3% on the partition above $2,000,000
2% additional tax is applied if above $3,000,000
Calculation Examples
Purchase Price is $650,000 the tax payable is $11,000
1% on the $200,000 = $2000
2% on the remaining $450,000 = $9,000
$2,000 + $9,000 = $11,000
Purchase Price is $1,000,000 the tax payable is $18,000
1% on the $200,000 = $2000
2% on the remaining = $16,000
$2,000 + $16,000 = $18,000
Purchase Price is $1,500,000 the tax payable is $28,000
1% on the $200,000 = $2000
2% on the remaining = $26,000
$2,000 + $16,000 = $28,000
Purchase Price is $2,000,000 the tax payable is $38,000
1% on the $200,000 = $2000
2% on the remaining = $36,000
$2,000 + $16,000 = $38,000
Purchase Price is $2,500,000 the tax payable is $53,000
1% on the $200,000 = $2000
2% on the portion greater than $200,000 and up to and including $2,000,000 = $36,000
3% on the portion greater than $2,000,000 = $15,000
$2,000 + $36,000 + $15,000 = $53,000
Purchase Price is $4,500,000 the tax payable is $143,000
1% on the $200,000 = $2000
2% on the portion greater than $200,000 and up to and including $2,000,000 = $36,000
3% on the portion greater than $2,000,000 = $75,000
A futhure 2% on the portion greater than $3,000,000 = $30,000
$2,000 + $36,000 + $75,000 + $30,000 = $143,000
Here is a link to the government’s Property Transfer Tax Calculator
https://forms.gov.bc.ca/taxes/estimate-your-property-transfer-taxes/
The above tax rates are for residential properties not commercial.
Daniel Warren 778-938-8577
Rachel Sadri 604-349-6736
Realestatebywarren.com