GST | Capital Gains

GST (remains at 5% as of 2024)

GST is typically only applied to the sale of new homes in British Columbia. This includes newly constructed properties sold by developers or owner-builders to a first buyer. Conversely, properties already lived in and used for residential purposes are exempt from GST, as it would have been paid when the property was new.

In special circumstances, GST may apply to renovated properties, but only if a significant portion (90% or more) of the property has been redeveloped. Additionally, GST is now applicable to all assignment sales of new or substantially renovated housing where GST applies to the purchase price.

Capital Gains Tax

When selling a property in British Columbia, Canada, the owner is subject to capital gains tax with the most common exemption of the sale of a principal residence. Capital gains tax applies to the profit made from the sale of a property, calculated as 50% of the capital gain. This means that only half of the profit is subject to taxation. For example, if you sell a property for $100,000 more than what you paid for it, you would be taxed on $50,000 of that profit. The actual tax rate applied to the capital gain will depend on your individual tax bracket.

Disclaimer: Specialized tax advice falls outside the expertise of a Realtor. Property owners are advised to consult with their local municipal government or a qualified tax professional to obtain specific details regarding their property tax obligations.