Understanding Deed Transfer Tax When Purchasing Property in Nova Scotia

If you considering buying a property in Nova Scotia it's crucial to understand the various costs involved, including the deed transfer tax. In Nova Scotia, this tax plays a significant role in the total cost of a real estate transaction .

Deed Transfer Tax is a Tax that applies to the sale of most properties

Deed transfer tax, also known as Land Transfer Tax or Property Transfer Tax, is a provincial tax imposed on the transfer of property from one individual or entity to another. This tax is typically calculated based on the property's purchase price or its assessed value, whichever is higher. It is paid by the buyer and is due as part of the closing costs. It must be paid to registering the property's transfer.

DEED TRANSFER TAX IS BASED ON THE ‘VALUE’ OF THE PROPERTY

Deed Transfer Tax is calculated based on the purchase price or assessed value of the property. Each municipality charges a different percentage ranging from 0.5% to 1.5%. You can see what rate applies in your area here. These rates are subject to change, so it's essential to consult with a legal professional or the Nova Scotia government for the most up-to-date information at the time of your purchase.

Are There Any Exceptions or Exemptions?

Certain transactions may be exempt from the Deed Transfer Tax in Nova Scotia. These exemptions typically include transfers between family members, Crown grants, amalgamated corporations, and transfers related to divorce settlements or inheritance.
It's important to consult with a lawyer or a qualified real estate professional to determine if you qualify for any exemptions or if there are any specific conditions that apply to your situation. These professionals can provide detailed guidance tailored to your specific circumstances.

THE NEW PROVINCIAL 5% NON-RESIDENT DEED TRANSFER TAX

New in 2022, the Province of Nova Scotia is levying an additional 5% to folks who are purchasing a property in Nova Scotia, but whom are non-resident (an exception is made for those planning to relocate here within 6 months from the time of purchase).

As of July 1, 2023, this tax will now also be levied against properties that are not transferred for value, for example a parent deeding 50% ownership in the family cottage to a child resident in another province.

UP TO DATE INFORMATION FROM THE PROVINCE

To keep up to date on the specific requirement of Municipal Deed Transfer Tax in Nova Scotia, you can refer to the government of Nova Scotia’s webpage