on February 23, 2024 
The BC government released their 2024 Budget which introduced a number of housing-related initiatives, including changes to property transfer tax exemptions and a new provincial property flipping tax.
Transfer Tax Exemptions
The threshold for property transfer tax exemption for first-time home buyers has been increased for residential properties from $500,000 to $835,000 as of April 1, 2024.
The new rules do not eliminate the transfer tax for all purchases under $835,000, but they do mean that your first $500,000 of the purchase price is exempt.
For example: A first time buyer purchasing a home for $800,000 will now pay transfer tax on only $300,000 (the excess over $500,000). The transfer tax will now cost $6,000 instead of $14,000, meaning the buyer saves $8,000 under the new rules. As in the past, first-time buyers and the property must meet all eligibility criteria which include Canadian citizenship (or permanent residency) and having not received a first-time homebuyer exemption in the past.
Newly constructed homes worth less than $1.1 million will also see a property transfer tax exemption on April 1, 2024, raising the threshold for the tax break from $750,000. Note that this exemption applies to all buyer, not just first-time buyers.
BC Flipping Tax
In addition to the federal anti-flipping tax, BC has added its own property flipping tax and is intended to reduce speculative home reselling. All homes sold on/after January 1, 2025 will be subject to the tax if sold within 24 months of purchase. If the home is sold within 12 months of purchase the tax will be 20% of the gain on the sale, with a sliding scale if sold between 12 and 24 months. For those that bought a home during 2023 or 2024 and intend to sell in the near term, be sure to review the rules for a potential tax burden as this new tax applies to principal residences as well as rental properties.
There is a list of exemptions for change in personal circumstance which include separation, divorce, death, illness etc. The tax does not apply to commercial properties or to land only sales and there are specific rules for properties that may have both commercial and residential use.
