2024 British Columbia Budget Highlights - Part 2/3: Transfer Tax Exemption Threshold Increases
Part 2/3 - Transfer Tax Exemption Threshold Increase
This 3-part series breaks down the new budget introduced by British Columbia’s Finance Minister last week, which implements a few new items to note for the upcoming years. While there are no adjustments to corporate or personal tax rates in the budget, it does unveil a fresh home flipping tax for B.C. properties sold starting January 1, 2025, alongside raised thresholds for property transfer tax exemptions and an exemption for purpose-built rentals.
Transfer Tax Exemption Threshold Increase
The budget brings good news for first-time home buyers and those purchasing newly built homes. Starting April 1, 2024, the threshold for property transfer tax exemption increases, but perhaps not high enough as the average home price in the major BC centers is significantly above this new level unless you're buying a condominium.
This means qualifying properties with a fair market value under $500,000 will be exempt from any transfer tax.
For first-time buyers, homes valued up to $835,000 are exempt, with the first $500,000 fully exempt from tax. A partial exemption applies for homes valued between $835,000 and $860,000, with no exemption beyond $860,000. This means qualifying properties with a fair market value under $500,000 will be exempt from any transfer tax.
A more meaningful increase can be found for first-time purchasers of new homes, the exemption threshold rises to $1.1 million for principal residences, with a phase-out starting at $50,000 above, and ending at $1.15 million. These changes aim to make buying homes more affordable for first-timers and those investing in new properties.
Access an overview of the new budget here. __________________________
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