What is the BC first-time home buyer property transfer tax exemption in 2026?

Sep 8

4 min read

Up to $8,000, and often the entire property transfer tax, if you buy your first home in BC for $835,000 or less. The exemption shrinks fast above that and disappears completely at $860,000. These thresholds have been in place since April 1, 2024, and haven't changed since.

How much does the exemption actually save you?

BC's property transfer tax is 1% on the first $200,000 of a home's value and 2% on the rest, up to $2 million. On a typical Metro Vancouver condo, that adds up fast:

$500,000 home: tax owed is $8,000. The exemption is a full $8,000. You pay $0.
$657,000 home (the median condo sale in Burnaby, Richmond and Vancouver right now): tax owed is $11,140. The exemption is a flat $8,000. You pay $3,140.
$835,000 home: tax owed is $14,700. Exemption still $8,000. You pay $6,700.
$850,000 home: tax owed is $15,000. The exemption has started shrinking here, down to $3,200. You pay $11,800.
$860,000 home or above: no exemption. You pay the full tax.

The $8,000 exemption is flat from $500,000 up to $835,000. It doesn't grow with the price. Above $835,000, it declines by $320 for every $1,000 the price climbs, until it hits zero at $860,000.

What actually counts as a "first-time" buyer?

You need to meet all of these:

You've lived in BC for at least a year immediately before registering the property, or filed at least 2 income tax returns as a BC resident in the last 6 years.
You've never owned an interest in a property that was your principal residence, anywhere in the world, at any time.
The property is 0.5 hectares or smaller.
You intend to use it as your principal residence, not a rental or investment.

That worldwide clause trips people up. Owning a home in another country years ago, even one you no longer own, can disqualify you.

What happens if I move out early?

You have to move into the home within 92 days of registration and live there continuously until the first anniversary of that date. Move out before the year is up and you can lose part or all of the exemption. There are exceptions for a death or a separation agreement, but outside of those, the clock runs for a full year.

If your plans could change inside that first year, don't treat the exemption as guaranteed.

How many condos in Burnaby, Richmond and Vancouver actually qualify right now?

I pulled 65 firm condo sales across Burnaby, Richmond and Vancouver between May 23 and August 11, 2026, and sorted them by where they'd land on the exemption scale.

Broken out by city, the odds shift a lot:

Richmond, 23 sales: 22 qualified for some exemption. Only 1 sold above $860,000.
Burnaby, 35 sales: 27 qualified for some exemption. 8 sold above $860,000.
Vancouver, 7 sales: 4 qualified for some exemption. 3 sold above $860,000.

My read: a first-time buyer shopping in Richmond has a real shot at the full $8,000 exemption just by buying an ordinary condo, no special hunting required. In Vancouver proper, you're closer to a coin flip, and in Burnaby it depends heavily on which building you're looking at.

Seven sales is a small sample for Vancouver specifically, so treat that number as a rough marker, not a precise one.

What if my home costs more than $860,000?

The exemption is gone and you pay the standard rate: 1% on the first $200,000, 2% on the rest up to $2 million. On a $950,000 condo, that's $17,000, all of it out of pocket on top of your down payment and closing costs.

If you're comparing two units $10,000 to $15,000 apart in price, and one sits just under $860,000 while the other sits just over, that gap changes your tax bill by thousands of dollars too. Bring it up at the negotiating table.

Frequently asked questions

What is the maximum property transfer tax exemption for first-time buyers in BC?

$8,000. It applies in full to homes priced from $500,000 up to $835,000, and covers the entire tax bill on homes at $500,000 or less.

Up to what price does the exemption fully cover the tax?

$500,000. Above that, the exemption is capped at $8,000 rather than covering the full amount owed.

What if only one of two co-buyers is a first-time buyer?

The exemption is reduced proportionally to match the eligible buyer's share of ownership. Two buyers splitting a title 50/50, with only one qualifying, get half the exemption.

How long do I have to move into the home to keep the exemption?

92 days from the registration date, then you need to live there continuously until the first anniversary of that date.

What's the property transfer tax rate if I don't qualify?

1% on the first $200,000 and 2% on the remainder, up to $2 million. There's no exemption once your home is priced above $860,000.

Barton Lui is a REALTOR® with Real Broker in Vancouver. He works mostly with first-time buyers across Metro Vancouver and speaks English, Cantonese and Mandarin.

If you're weighing whether a condo lands above or below the exemption line, book a consultation or read how condo prices break down in Burnaby and what income you need to qualify.

Reach him at 604-715-5568 or barton@bartonrealtor.com.