04 Apr Kelowna Property Taxes: Tax Benefits & Credits for Property Owners in Kelowna
Tax Benefits & Credits for Homeowners in Kelowna
Purchasing a house is an exciting step, and if you’re considering a move or buying your first home in Kelowna, it’s important to be aware of several tax benefits and credits for homeowners. These financial advantages can lead to long-term savings if you meet the eligibility criteria.
First-time Home Buyers Tax Credit (HBTC)
If you’re purchasing a house for the first time, you may be eligible for the HBTC. This grant isn’t refundable and is an income tax credit for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation.
If you’d like to know how much you may qualify for, you just need to multiply your lowest personal income tax rate for this year by $10,000. The maximum credit available is $1,500.
Property Transfer Tax (PTT) For First Time Home Buyers
If you’re purchasing a house for the first time, you may also be exempt from paying property transfer tax. If you qualify, you may be eligible for a full or partial exemption from this tax. Keep in mind this only applies to Canadian citizens or permanent residents who have lived in BC for 12 consecutive months before purchasing, who have never owned a principal residence anywhere in the world at any time, among other qualifiers.
If you’d like to learn more about the first time home buyer’s program, check out the provincial government’s page here.
BC Home Owner Grant
The British Columbia Home Owner Grant is a valuable program designed to provide financial relief to homeowners. Eligible residents can receive home owner grants based on the assessed value of their property, reducing your property tax bill.
The grant threshold represents the maximum assessed or partitioned value of a property that allows homeowners to claim the home owner grant.
For the year 2023, the grant threshold is set at an assessed property value of $2,125,000. If your property’s assessed or partitioned value is $2,125,000 or less, you may qualify for the full regular grant amount.
However, if you meet all the eligibility requirements, but your property’s assessed or partitioned value exceeds $2,125,000, you may still be eligible for a reduced grant amount. This reduction is calculated at a rate of $5 for each $1,000 of assessed value over $2,125,000. Homeowners with properties assessed up to $2,239,000 (or $2,279,000 in a northern and rural area) may be eligible for a partial regular grant. Beyond these thresholds, for properties assessed higher than $2,294,000 (or $2,334,000 in a northern and rural area), the home owner grant is not applicable.
To summarize the grant thresholds:
Property Assessed or Partition Value: $2,125,000 or less – You may qualify for the full grant.
Property Assessed or Partition Value: Between $2,125,000 and $2,239,000 (or $2,279,000 in a northern and rural area) – You may receive a partial grant.
Property Assessed or Partition Value: Over $2,239,000 (or $2,279,000 in a northern and rural area) – No grant is available.
Renovation Tax Credit For Seniors and Persons with Disabilities
If you’re a senior (65+) or a person with disabilities, you may be eligible for a home renovation tax credit in British Columbia. This credit is aimed at supporting essential home improvements that enhance functionality and accessibility. The BC government specifies that eligible renovations should focus on improving access, mobility, or safety within the home or on the property. Qualifying projects include the installation of handrails in corridors, adjustments to counters or cupboards, and adding motion-activated lighting.
It’s important to note that aesthetic upgrades, appliances, and home medical monitoring equipment do not qualify.
For a comprehensive list of eligible renovations, please refer to the provincial government’s Home Renovation Tax Credit for Seniors and Persons with Disabilities webpage.
City of Kelowna Property Tax Notices & Information
The Kelowna property tax notice is sent out in late May every year. To prevent incurring a mandated 10 percent late penalty fee, it’s crucial to ensure that your payment is received by the due date.
If you choose to make your property tax payment through telephone banking or online via your bank or a third-party credit card service, please allow your financial institution at least three business days to process and transfer the payment to the City by the due date. Keep in mind that if you opt to make property tax payments by check through the mail, the postmark date is not considered the date of payment.
The city of Kelowna offers various tools to manage your property taxes, including a property tax estimator and information on how to set up your property tax account, which can be accessed here.
Contact John Antle to Learn More About Kelowna Property Taxes
If you’re considering purchasing a house and would like to know more about tax benefits and credits you may qualify for, feel free to contact us. We’re a Kelowna Mortgage Broker who provides convenient financing processes with unbiased counsel from reputable and informed mortgage professionals.