BC Property Transfer Tax on Renovated Homes 2025
Property Transfer Tax and Renovated Homes in BC
When buying a renovated home in BC, or selling one you’ve renovated, understanding Property Transfer Tax (PTT) implications helps optimize your financial outcome.
BC Property Transfer Tax Basics
- 1% on first $200,000
- 2% on $200,001–$2,000,000
- 3% on $2,000,001–$3,000,000
- 5% on amounts over $3,000,000
First-Time Buyer Exemption
First-time buyers are exempt from PTT on homes valued up to $835,000 (full exemption) with partial exemption to $860,000. Homes must be used as principal residence. Renovated homes qualify if they meet the price threshold.
Newly Built Home Exemption
A renovated home does NOT qualify as “newly built” for PTT purposes — only brand new construction qualifies. However, a significant renovation that essentially creates a new structure (gut to studs) may qualify depending on circumstances — consult a tax lawyer.
BC GST/HST on Substantial Renovations
CRA defines a “substantial renovation” as replacing 90%+ of the usable interior — triggering GST on the first sale. Vancouver homeowners selling substantially renovated homes may need to charge and remit GST. This creates an unexpected cost for sellers who assumed renovation was exempt. Seek tax advice early.
→ See also: Vancouver Renovation Planning Guide
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