 # How To Calculate Property Tax On Your Purchase

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