First time home buyers' exemption amounts

On this page

• What determines your exemption amount
• Property size smaller than 0.5 hectares
• Property size larger than 0.5 hectares
• Non-residential improvement

What determines your exemption amount

If you qualify for the first time home buyers' exemption, the amount of property transfer tax you pay depends on:

1. The fair market value of the property
2. The percentage of the property transfer eligible for the exemption
3. The size of the property
4. Whether there are any non-residential improvements on the property
5. When the the property was registered

The exemption amount is deducted from the amount of tax you would normally pay.

Property size smaller than 0.5 hectares

If your property size is smaller than 0.5 hectares, the following information applies.

Note: If the property transfer is larger than 0.5 hectares then the fair market value of your property that is eligible for exemption will change. In this case, your exemption amount may also change.

Exemption amount when 100% of the property transfer is eligible

When 100% of the property transfer is eligible, the exemption amount is determined by the fair market value of your property. If the fair market value of the property is:

• $500,000 or less, you can claim an exemption amount equal to the full amount of property transfer tax
• Over $500,000 but no more than $835,000, the exemption amount is $8,000
• Over $835,000 and under $860,000 then the exemption amount is proportionally reduced

You can use the property transfer tax calculator to estimate the property transfer tax before exemption based on the fair market value of your property.

Below is the amount of tax payable if 100% of the property transfer is eligible for the first time home buyers’ exemption.

Exemption amounts

Fair market value	Property transfer tax amount	Exemption amount	Property transfer tax payable
Under $500,000	See property transfer tax calculator	The same amount as property transfer tax before exemption	-
$500,000	$8,000	$8,000	-
$550,000	$9,000	$8,000	$1,000
$600,000	$10,000	$8,000	$2,000
$650,000	$11,000	$8,000	$3,000
$700,000	$12,000	$8,000	$4,000
$750,000	$13,000	$8,000	$5,000
$800,000	$14,000	$8,000	$6,000
$835,000	$14,700	$8,000	$6,700
$836,000	$14,720	$7,680	$7,040
$837,000	$14,740	$7,360	$7,380
$838,000	$14,760	$7,040	$7,720
$839,000	$14,780	$6,720	$8,060
$840,000	$14,800	$6,400	$8,400
$841,000	$14,820	$6,080	$8,740
$842,000	$14,840	$5,760	$9,080
$843,000	$14,860	$5,440	$9,420
$844,000	$14,880	$5,120	$9,760
$845,000	$14,900	$4,800	$10,100
$846,000	$14,920	$4,480	$10,440
$847,000	$14,940	$4,160	$10,780
$848,000	$14,960	$3,840	$ 11,120
$849,000	$ 14,980	$ 3,520	$ 11,460
$850,000	$ 15,000	$ 3,200	$ 11,800
$851,000	$ 15,020	$ 2,880	$ 12,140
$852,000	$ 15,040	$ 2,560	$ 12,480
$853,000	$ 15,060	$ 2,240	$ 12,820
$854,000	$ 15,080	$ 1,920	$ 13,160
$855,000	$ 15,100	$ 1,600	$ 13,500
$856,000	$ 15,120	$ 1,280	$ 13,840
$857,000	$ 15,140	$ 960	$ 14,180
$858,000	$ 15,160	$ 640	$ 14,520
$859,000	$ 15,180	$ 320	$ 14,860
$860,000	$ 15,200	-	$ 15,200

Exemption amount when only part of the property transfer is eligible

If only part of the property transfer is eligible (for example, not all of the purchasers qualify), the exemption amount will be reduced. The exemption amount will be based off the percentage of the property transfer that is eligible.

For example, you and your spouse purchase an $835,000 home as joint tenants, but only you are eligible for the first time home buyers’ exemption (your spouse is not eligible). The net property transfer tax payable is calculated as follows:

Property size larger than 0.5 hectares

If your property is larger than 0.5 hectares, then the fair market value of your property eligible for exemption changes.

The eligible fair market value for the exemption is calculated as follows:

The fair market value of your principal residence (not including the value of the land)

Add:

The fair market value of the land (not including the value of the principal residence and any other improvements) multiplied by the ratio of 0.5 hectares to the total area of the property

Below are scenarios to show how the exemption amount is calculated.

Scenario 1

You purchase a home on 2.0 hectares for $500,000 (the fair market value). The fair market value of the house that is your principal residence is $200,000. There are no other buildings on the property. The fair market value of the land is $300,000.   

The following steps show how to calculate the fair market value of your property that is eligible for your exemption:

1. The fair market value of your principal residence (not including the value of the land) is $200,000
2. The total fair market value of land (not including the value of your principal residence) is $300,000
3. The ratio of 0.5 hectares to the total area of the property (0.5 hectares/2.0 hectares) is 0.25
4. The fair market value applicable to your land ($300,000 x 0.25) is $75,000
5. The fair market value of your property that is eligible for the first time home buyers' program ($200,000 + $75,000) is $275,000

Use the property transfer tax calculator or refer to the table above to determine your exemption amount and tax payable. The following steps show how to calculate the property transfer tax payable after the exemption:

1. The property transfer tax amount from the total fair market value of your property ($500,000) is $8,000
2. The exemption amount from the eligible fair market value of your property ($275,000) is $3,500
3. The property transfer tax payable after the exemption ($8,000 - $3,500) is $4,500

Scenario 2

You purchase a home on 1.0 hectares for $800,000 (the fair market value). The fair market value of the house that is your home is $500,000. There are no other buildings on the property. The fair market value of the land is $300,000.

The fair market value of your property that is used to determine your exemption amount is calculated as follows:

1. The fair market value of your principal residence (not including the value of the land) is $500,000
2. The total fair market value of land (not including the value of your principle residence) is $300,000
3. The ratio of 0.5 hectares to the total area of the property (0.5 hectares/1.0 hectares) is 0.50
4. The fair market value applicable to your land ($300,000 x 0.50) is $150,000
5. The fair market value of your property that is eligible for the first time home buyers' program ($500,000 + $150,000) is $650,000

Use the property transfer tax calculator or refer to the table above to determine your exemption amount and tax payable. The following steps show how to calculate the property transfer tax payable after the exemption:

1. The property transfer tax amount from the total fair market value of your property ($800,000) is $14,000
2. The exemption amount from the eligible fair market value of your property ($650,000) is $8,000
3. The property transfer tax payable after the exemption ($14,000 - $8,000) is $6,000

Scenario 3

You purchase a home on 3.0 hectares for $2,000,000 (the fair market value).  Because the fair market value of this property exceeds $835,000, your home is not eligible for the first time home buyers’ exemption.

Non-residential improvements

If your residential property has non-residential improvements, such as a farm building or a corner store, you can claim an exemption. You must meet all other requirements for the exemption.

The fair market value of your property that is eligible for your exemption is calculated as follows:

The fair market value of residential improvement (your principal residence)

Add:

The fair market value applicable to the land

For example, you purchase your home and there is a commercial building adjacent to the home. The fair market value of the property is as follows:

• Residential improvement is $300,000
• Commercial improvement is $200,000
• Land is $300,000
• Total fair market value is $800,000

The total fair market value that is eligible for an exemption ($300,000 + 300,000) is $600,000.

Use the property transfer tax calculator or refer to the table above to determine your exemption amount and tax payable. The following steps show how to calculate the property transfer tax payable after the exemption:

1. The property transfer tax amount from the total fair market value of your property ($800,000) is $14,000
2. The exemption amount from the eligible fair market value of your property ($600,000) is $8,000
3. The property transfer tax payable after the exemption ($14,000 - $8,000) is $6,000