Buying your first home in Metro Vancouver is a huge milestone.
There are also many financial considerations to keep in mind. One of the biggest is property tax, an ongoing expense that comes with homeownership.
If you’re a first-time buyer, understanding property taxes in BC is important so you’re not caught off guard during your home closing when you buy.
By the end, you’ll feel confident navigating property taxes.
What Are Property Taxes in BC?
Property taxes in BC are an annual tax charged by the municipality/city based on the assessed value of your property (determined by BC Assessment). These taxes are essential for funding many local services, such as schools, road maintenance, public transit, and emergency services like police and fire departments.
Each municipality in BC sets its property tax rate, known as the “mill rate” which determines how much tax you’ll owe per $1,000 of your property’s assessed value.
For instance, if your property is assessed at $1,000,000 and your city’s mill rate is 3.5, your annual property tax bill would be $3,500 (1,000,000 ÷ 1,000 × 3.5).
These rates can vary significantly, depending on where you live. For example in BC, Powell River, Kamloops, and Nanaimo have the highest property tax rates. While cities like Whistler, Vancouver, and Surrey have the lowest property tax rates in 2023.
Recommended Reading: Top First Time Home Buyer Programs For BC Buyers
How Do Property Taxes Work When I Am Buying?
When purchasing a property, property taxes are an important factor to consider as they will impact your closing costs and ongoing expenses.
Typically, the responsibility for property taxes is prorated between the buyer and the seller based on the date of the property transfer.
Buying Before New Taxes for the Year (e.g., March)
Let’s say you’re buying a property in March, the current year’s property tax bill has likely not yet been issued as most municipalities release tax notices mid-year.
Since the seller typically owns the property for the first part of the year, they are responsible for covering their share of the taxes up until the date of sale. The buyer will then assume responsibility for the remainder of the year’s taxes.
At closing, an estimate of the current year’s taxes may be used, and an adjustment will be made to reflect the seller’s portion as a credit to the buyer. Once the official tax bill is issued, the buyer is responsible for ensuring the payment is made.
Example: You purchase a house on March 15, and the annual property tax is estimated to be $3,600. Since March 15 is approximately 20% through the year, the seller would owe $720 (20% of $3,600), and this amount would likely be prorated and credited to you at closing. Once taxes are billed later in the year, you would handle the full payment.
Buying After New Taxes Have Been Issued (e.g., August)
If you buy a property in August, the seller might have already paid the year’s property taxes in full, as many municipalities require payment by mid-year deadlines. In this case, you, as the buyer, will need to reimburse the seller for the taxes that cover your portion of ownership for the remainder of the year. This reimbursement is handled through adjustments at closing.
Example: If annual property taxes for a home are $3,600 and the sale date is August 15, the seller has paid for the full year but only lived in the home for approximately 65% of it (January to mid-August). Therefore, you would be responsible for reimbursing the seller for the remaining 35% of the year’s taxes, which amounts to $1,260. This cost is added to your closing expenses.
By understanding the timing of property tax payments, you as a buyer can better anticipate their financial responsibilities and avoid unexpected costs during the home-buying process.
Property Taxes Across Metro Vancouver
Metro Vancouver is made up of several municipalities, each with its unique property tax rate. Below is a table that highlights the current property tax rates (as of 2024):
| City | Residential Property Tax Rates per $1,000 in Assessed Value |
| Vancouver | $2.96818 |
| Burnaby | $2.83470 |
| Richmond | $3.04070 |
| Surrey | $2.93626 |
| Coquitlam | $3.32460 |
| Delta | $3.55540 |
| North Vancouver (City) | $3.02579 |
| West Vancouver | $2.75979 |
| Langley (City) | $3.5775 |
| Langley (Township) | $3.17967 |
| Port Coquitlam | $3.37280 |
| Port Moody | $3.75831 |
| New Westminster | $4.08557 |
| Maple Ridge | $3.91050 |
| Pitt Meadows | $3.92100 |
| White Rock | $3.66489 |
For instance, if you own a property worth $880,000 in Burnaby, your annual property tax would be approximately $2,495 (880,000 × 0.283470%).
Property tax rates can change annually, so it’s always a good idea to check with the municipality for the most up-to-date rates.
When Are Property Taxes in Metro Vancouver Due?
Property tax deadlines vary across Metro Vancouver, but they typically fall in early July. It’s important to pay by the deadline to avoid penalties or interest.
We recommend checking your city or municipality’s website for deadlines and payment details. Many municipalities also offer online payment options, which can make the process more convenient.
How Property Taxes Are Used
These taxes are collected by local governments and are a primary source of funding for public services that directly impact your quality of life.
For example, property tax revenue is used to maintain local infrastructure like roads, bridges, and public buildings.
It helps fund public schools, ensuring children in the community receive quality education. Property taxes also support emergency services, such as firefighters, police departments, and ambulance services.
Source: City of Burnaby
Every city has its specific priorities, so the use and allocation of property taxes may differ. Paying property taxes ensures these services continue to function and improve for everyone in the community.
Other Commonly Asked Questions
Are There Any Property Tax Credits or Rebates for First-Time Buyers?
While property tax rebates don’t exist specifically for first-time buyers, you may be eligible for BC’s Home Owner Grant. This grant reduces the amount of property tax you owe on your principal residence. You can apply each year through your municipality.
What Happens If I Miss the Due Date?
If you miss your property tax payment deadline, most municipalities charge daily interest or a late-payment penalty, often around 10%. Make timely payments to avoid unnecessary costs.
Are Property Taxes the Same as the Property Transfer Tax (PTT)?
No, property taxes and transfer taxes are different. The Property Transfer Tax (PTT) is a one-time fee paid when you purchase a home, calculated using the home’s purchase price.
Whereas Property taxes are an annual expense based on your property’s assessed value.
Start Budgeting for Property Taxes Today
Understanding property taxes in BC is a vital step in preparing for homeownership, especially for first-time buyers. Property taxes play an important role in both the upfront and ongoing costs of owning a home, so it’s important to factor them into your budget from the start.
It’s also worth noting that property taxes are influenced by the assessed value of your home, which can change over time. If housing prices in your area rise, your property taxes may increase as well. For some new homeowners, this can create additional budgeting challenges in the years to come.
Looking for more advice or tools to guide your home-buying process? We’re here to help you navigate your home buying journey in Metro Vancouver. (604) 253-0788.
