BC Newly Built Home Transfer Tax Exemption: What a Presale Buyer Saves (2026)

If you will live in your new BC presale, you can pay $0 in property transfer tax on a home up to $1.1 million, and a reduced amount up to $1.15 million. If you are buying it as an investment, you pay the full tax, which is $13,000 on a $750,000 unit. The exemption is one of the biggest closing-cost savings in BC, and it only works if you meet the occupancy rules.

Most buyers hear about the first-time buyer transfer tax exemption and stop there. But the newly built home exemption is larger, has no first-time-buyer requirement, and applies to the exact product we specialize in: brand-new condos and townhomes. Here is how it works in 2026, using current Province of BC rules.

The 2026 numbers: new-build exemption vs first-time buyer exemption

Exemption	Full exemption up to	Partial exemption up to	First-time buyer only?
Newly Built Home	$1,100,000	$1,150,000	No
First-Time Home Buyers	$500,000	$835,000	Yes

The Province raised the new-build thresholds on April 1, 2024, from $750,000 and $800,000. Since 80-90% of presale buyers in the Fraser Valley are shopping between $500,000 and $1,000,000, most of them land fully inside the exemption.

Worked example: what the exemption is worth

BC's property transfer tax is 1% on the first $200,000, 2% from $200,000 to $2 million, and 3% above that (plus an extra 2% on the portion of residential value over $3 million). Here is the tax on three presale prices, with and without the exemption.

Purchase price	Tax if you are an investor	Tax if you live in it	You keep
$750,000	$13,000	$0	$13,000
$1,125,000	$20,500	$10,250	$10,250
$1,200,000	$22,000	$22,000	$0

The math on the middle row: full tax at $1,125,000 is $2,000 plus 2% of $925,000, which is $20,500. The partial exemption phases out in a straight line across the $50,000 band, so at the halfway point you pay half. The $1,200,000 buyer is past the cliff and pays everything.

Who actually qualifies

Do you stack it with other programs?

You do not stack the two transfer tax exemptions. You use whichever one saves you more, and above $500,000 that is almost always the new-build exemption. What does stack is the federal first-time buyer GST rebate, which refunds up to $50,000 of GST on new homes up to $1 million and phases out to zero at $1.5 million. See our guide on the first-time buyer GST rebate on presales for the claim process.

For a first-time buyer on a $750,000 presale, that means roughly $13,000 of transfer tax avoided plus up to $37,500 of GST refunded. Together, the two programs put about $50,000 back in your pocket at completion.

What the sales centre will not walk you through

Presentation centre reps sell the unit, not your tax position. They rarely explain that the exemption depends on how you use the home after completion, or that a unit priced just over $1,150,000 costs you $11,000 or more in tax than a similar unit just under $1,100,000. We represent buyers only, so we flag these price-band cliffs before you commit, and we can often point you to comparable floor plans priced inside the exemption.

One more risk worth naming: if you claim the exemption and then do not move in within 92 days or do not stay for the first year, the Province can claw the tax back with interest. Do not claim it planning to rent the home out. If you are weighing whether to rent instead, read our guide to renting out a presale in BC first.

Quick answers

Does the exemption apply to assignment purchases? It can apply when the home is still a qualifying new build, but assignment buyers should have their lawyer confirm before relying on it.

When is the tax paid? At completion, through your lawyer or notary, when title is registered in your name. It is not due at signing.

Can a couple use it if one spouse is not a PR? Eligibility is assessed per buyer, so a mixed-status purchase can reduce the exemption. Raise this with your lawyer before you sign.

Sources: Province of BC, Newly Built Home exemption; BC property transfer tax rates. General information, not tax or legal advice; rates and thresholds can change, so confirm with your lawyer.