Mortgage Guide
How BC's first time home buyers' property transfer tax exemption works in 2026: the value limits, who qualifies, buying with a partner, and the conditions that apply for a year after you move in.
Property transfer tax is one of the biggest cash costs of buying a home in British Columbia,, and it is paid when your purchase is registered. The first time home buyer exemption BC offers can remove some or all of it, but the rules are stricter than most people expect, and they keep applying for a year after you get the keys. This guide walks through the current thresholds, who qualifies, what happens after you move in, and the traps we see most often. Everything is taken from the Province of BC's own pages.
The province's property transfer tax page (updated December 3, 2025) sets the general rate on fair market value:
So a $500,000 home carries $8,000 of tax ($2,000 + $6,000), and an $835,000 home carries $14,700 ($2,000 + $12,700). Our BC land transfer tax calculator does the arithmetic for any price.
For homes registered on or after April 1, 2024, a qualifying buyer pays no property transfer tax on the first $500,000 of fair market value. That means the full tax is exempt at $500,000 or less, and the exemption is $8,000 for homes from $500,000 up to $835,000. The province's exemption amount page breaks it down:
| Fair market value (registered on/after Apr 1, 2024) | Exemption | Example: tax before → after |
|---|---|---|
| $500,000 or less | Full amount of the tax | $500,000: $8,000 → $0 |
| Over $500,000 up to $835,000 | $8,000 | $835,000: $14,700 → $6,700 |
| Over $835,000, under $860,000 | Proportionally reduced | Shrinks toward $0 as value approaches $860,000 |
| $860,000 or more | None | Full tax |
The full exemption applies to homes with a fair market value of $835,000 or less. A partial exemption applies between $835,000 and $860,000, reduced proportionally. At $860,000 or more, the first time home buyers' exemption does not apply. Because the exemption fades out over just $25,000, a few thousand dollars on the offer price near $835,000 can cost you a large share of it. Run the numbers before you bid in that range.
Older limits apply: the full exemption needed a value of $500,000 or less, and the partial range was $500,000 to $525,000.
You must be a Canadian citizen or permanent resident, have lived in BC for at least a year immediately before registration or filed at least two BC income tax returns in the last six years, have never owned a registered interest in a principal residence anywhere in the world, and have never received the exemption or refund before.
The property has to qualify too. The province's first time home buyers' program page (updated June 20, 2025) requires that it be used only as your principal residence, meet the value limits, and be 0.5 hectares (1.24 acres) or smaller. Larger lots and homes with another building on them can still get a partial exemption, calculated on the house plus a share of the land.
This catches people out. Federal programs like the FHSA and the RRSP Home Buyers' Plan use a four-year test: you are "first-time" if you haven't lived in a home you owned in the current year or the previous four calendar years. BC's property transfer tax exemption has no look-back window. If you have ever owned a registered interest in a principal residence anywhere in the world, you don't qualify. You can be a first-time buyer for your FHSA and not for BC property transfer tax. Our guide to using the FHSA and Home Buyers' Plan covers the federal side.
The province says that if you become a citizen or permanent resident on or before the first anniversary of registration, you may apply for a refund. It gives a contact number for this: 236-478-1593.
Only your share qualifies. If one buyer qualifies and the other does not, the exemption applies only to the qualifying buyer's percentage interest. For example, joint tenants on an $835,000 home where only one qualifies get 50% of the $8,000 exemption. The same applies to a parent added to title to help you qualify. Their ownership history affects their share. Talk this through with your lawyer or notary before deciding how title is held.
The exemption is claimed on the property transfer tax return your legal professional files at registration, but the conditions continue for a year. Yes. The province says you must move in within 92 days of registration and occupy the home as your principal residence until the first anniversary of registration. If you move out early, you may keep only part of the exemption. The province makes exceptions where the owner dies, or the property is transferred under a separation agreement or Family Law Act order before the first anniversary.
If you qualified but didn't apply when you registered, the province says you can apply for a refund from the first anniversary up to 18 months after registration, using form FIN 265.
Every application is reviewed. The province charges a penalty equal to the exemption claimed, on top of repaying it, if you falsely declare that you have never owned a principal residence or never received the exemption.
If you buy a vacant lot and build, the value test for registrations from April 1, 2024 is the lot's fair market value plus your construction cost: under $835,000 for the full exemption, or $860,000 for partial. You must build and move in within the first year. If your first home is newly built, also look at the province's separate newly built home exemption, which has its own limits and isn't restricted to first-time buyers.
The first time home buyer exemption BC offers reduces the cash you need at completion, but most buyers in Richmond and Vancouver will still pay some tax. Budget for it alongside your down payment and legal fees. CMHC suggests closing costs typically run 1.5% to 4% of the purchase price. Then:
Blue Sky Mortgage Group is a licensed BCFSA mortgage brokerage based in Richmond. We are not tax advisers. Your lawyer or notary files the return and applies the exemption. But we can help you plan the full cash picture. Call 778-991-3289.
For homes registered on or after April 1, 2024, a qualifying buyer pays no property transfer tax on the first $500,000 of fair market value. That means the full tax is exempt at $500,000 or less, and the exemption is $8,000 for homes from $500,000 up to $835,000.
The full exemption applies to homes with a fair market value of $835,000 or less. A partial exemption applies between $835,000 and $860,000, reduced proportionally. At $860,000 or more, the first time home buyers' exemption does not apply.
You must be a Canadian citizen or permanent resident, have lived in BC for at least a year immediately before registration or filed at least two BC income tax returns in the last six years, have never owned a registered interest in a principal residence anywhere in the world, and have never received the exemption or refund before.
Yes. The province says you must move in within 92 days of registration and occupy the home as your principal residence until the first anniversary of registration. If you move out early, you may keep only part of the exemption.
Only your share qualifies. If one buyer qualifies and the other does not, the exemption applies only to the qualifying buyer's percentage interest. For example, joint tenants on an $835,000 home where only one qualifies get 50% of the $8,000 exemption.
Thresholds and conditions from the Province of British Columbia (program page updated June 20, 2025; PTT page updated December 3, 2025), checked October 2026.
This is general information, not financial advice. Speak to a licensed mortgage professional, and your lawyer or notary, about your situation.
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