British Columbia has a reputation for its high housing prices and low property tax rates. In fact, the two are somewhat linked. Those low property tax rates, alongside a provincial homeowner grant and the principal residence capital gains tax exemption, have affected how home prices across the province have risen so much in the last decade.
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The average home buyer tends to value affordability. Other than the amount they need to spend on their house and mortgage, the property tax they’ll have to pay is often overlooked when budgeting for a home. So, where in BC would you pay the least on property taxes?
We compiled a list of 30 different cities and regions across B.C. and their property tax rates and calculated the amount of property taxes a resident would pay on a home at the average price, $500,000, $1,000,000, and $1,500,000. Take a look at the results in the infographic below.
How Is Property Tax Calculated?
How much a home owner pays in property taxes is determined by the municipality tax rates and the most recent value assessment of the home, conducted by the BC Assessment. They will assess home values, the property classification, and exemption status. To calculate your property taxes, you will need to multiply the taxable assessed value of your property by the tax rate for your property class.
Whistler Has the Lowest Property Tax in BC
Great news for avid skiers and snowboarders – Whistler has the lowest property tax rates in BC, with a rate of just 0.235900. However, it has some of the highest housing prices on our list, with an average home costing $1,308,400. Generally speaking, housing costs are higher in the areas with the lowest tax rates.
Of the seven regions with the lowest rates on our list, the average price for all homes is over $1,000,000. The most you would pay on average is $3,729 in North Vancouver. Vancouver has the second lowest property tax rate at 0.269293, and Surrey rounds out the top three at 0.280324.
At the opposite end of the scale, Powell River has the highest property tax rate of all the areas we reviewed, at 0.671150 however, It has the lowest average home price of all the cities we analyzed.
All of the four cities with the highest property tax rates had home prices below $600,000; Kamloops (0.603820, $515,465), Nanaimo (0.600870, $586,833), and Campbell River (0.562082, $515,533).
The five cities with the highest property tax rates:
Powell River: 0.671150%
Kamloops: 0.603820%
Nanaimo: 0.600870%
Campbell River: 0.562082%
Central Saanich: 0.452785%
The five cities with the lowest property tax rates:
Whistler: 0.235900%
Vancouver: 0.269293%
Surrey: 0.280324%
Burnaby: 0.284280%
North Saanich: 0.285500%
Whether you’ve taken property tax rates into account or not, it’s always best to speak to an expert real estate agent who can walk you through the process of buying a home, as well as what costs you’ll need to consider that you may have overlooked.
Check out all the homes available in British Columbia now, and give us a call to connect with a local real estate agent to help you seal the deal!
