The Property Transfer Tax (PTT) is a tax imposed by the government of British Columbia (BC) on the transfer of ownership of real property in the province. It is based on the fair market value of the property or the purchase price, whichever is higher.

In BC, the PTT is calculated as follows:

1. 1% on the first $200,000 of the fair market value or the purchase price.
2. 2% on the portion of the fair market value or purchase price that exceeds $200,000 but is not more than $2,000,000.
3. 3% on the portion of the fair market value or purchase price that exceeds $2,000,000.
4. If the property has residential property worth over $3,000,000, a further 2% tax will be applied to the residential property value greater than $3,000,000. 

There are some exemptions and reductions available under the PTT, such as the First-Time Home Buyers’ Program, which provides a full exemption from the tax for eligible first-time homebuyers.

It is important to note that the PTT is in addition to other costs associated with purchasing a property, such as legal fees and disbursements, and must be paid by the buyer at the time of the transfer of ownership. The PTT is usually collected by the lawyer or notary handling the transaction, who will then remit it to the BC government.

In conclusion, the Property Transfer Tax is an important consideration for individuals looking to purchase real property in BC. It is important to understand the tax and any exemptions or reductions that may be available, as it can have a significant impact on the overall cost of purchasing a home.