ATLANTIC CANADA · CLOSING COSTS
Land transfer tax in Nova Scotia, New Brunswick & PEI: what you'll actually owe at closing
It's one of the largest single line items on your closing statement, it's due in cash, and all three Atlantic provinces handle it differently — different names, different rates, and only one of them gives first-time buyers a break. Here's exactly how each one works, plus a calculator for your own purchase price.
Educational only — not tax or legal advice. Rates and exemptions can change, and Nova Scotia's rate is set by your municipality. Confirm your exact figure with your lawyer or with Rahul before you finalize your budget.
Estimate your transfer tax in all three provinces
Enter your purchase price and see what the same home would cost you in deed transfer tax across Nova Scotia, New Brunswick, and PEI.
Nova Scotia
$2,125 – $6,375
Municipal Deed Transfer Tax runs from 0.5% to 1.5% of the sale price depending on the municipality. Confirm your municipality's exact rate before closing.
New Brunswick
$4,250
Flat 1% on $425,000 — the greater of your purchase price and the assessed value.
Prince Edward Island
$4,250
Standard 1% of the property's value.
Estimates only, based on the rates published above. Nova Scotia's figure is a range because the rate is set municipality by municipality. This tax is separate from and in addition to legal fees, title insurance, and your other closing costs — the home buying cost calculator puts the whole picture together.
The three provinces side by side
| Province | Rate | Calculated on | First-time buyer break |
|---|---|---|---|
| Nova ScotiaMunicipal Deed Transfer Tax (MDTT) | 0.5% – 1.5%, set independently by each municipality | The property's sale price (not the assessed value) | None — no province-wide first-time buyer rebate |
| New BrunswickReal Property Transfer Tax | Flat 1% | The greater of the purchase price or the assessed value | None |
| Prince Edward IslandReal Property Transfer Tax | 1% (properties under $30,000 exempt entirely) | The property's value | Full exemption at $200,000 or less, primary residence |
Nova Scotia: it's municipal, not provincial
Nova Scotia's version is called the Municipal Deed Transfer Tax, and the name is the important part. This is not a provincial tax. Each municipality sets its own rate independently, and across the province those rates range from 0.5% to 1.5% of the property's sale price — the price you actually paid, not the assessed value.
That range matters. On a $450,000 purchase, the difference between the low end and the high end is $2,250 versus $6,750 — a $4,500 swing on the same house, decided purely by which municipal boundary it falls inside.
Don't guess this number. Confirm your municipality's exact rate — it ranges from 0.5% to 1.5%, and Rahul can look it up for your specific address. Rates get changed by municipal council, so a figure you found in a two-year-old blog post is not a budget.
There is no province-wide first-time buyer rebate for MDTT in Nova Scotia. If you're buying your first home in NS, plan on paying the full amount at closing.
New Brunswick: flat 1%, but watch which number it's applied to
New Brunswick charges a flat 1% Real Property Transfer Tax — simple rate, one province-wide number, no municipal variation. The wrinkle is the base it's calculated on: NB uses the greater of the purchase price or the property's assessed value.
So if you negotiate hard and buy below assessment, the tax doesn't follow you down. Buy a home assessed at $340,000 for $310,000 and you'll pay 1% of $340,000 — $3,400, not $3,100. Check the assessment before you set your cash-to-close number.
No first-time buyer rebate
New Brunswick does not offer a first-time buyer exemption or rebate on the transfer tax. Everyone pays the same 1%.
A little history
The 1% rate has applied to transfers since April 1, 2016. It was 0.5% from 2012 to 2016, and 0.25% before that — useful context if you're comparing against an older purchase, but 1% is the current rate.
PEI: 1% — and the only real first-time buyer break in Atlantic Canada
Prince Edward Island charges a 1% Real Property Transfer Tax on the property's value. Two exemptions matter:
- Properties under $30,000 are exempt entirely. No transfer tax at all below that threshold.
- First-time home buyers get a full exemption from the transfer tax if the purchase price is $200,000 or less and the home will be their primary residence — plus the standard residency and citizenship requirements.
The $200,000 ceiling is a cliff, not a slope. Above $200,000, no rebate applies for first-time buyers — the full 1% applies to the entire amount, not just the portion above the threshold. At $200,000 a first-time buyer pays $0; at $205,000 they pay $2,050.
This is on top of your other closing costs — not instead of them
Land transfer tax is separate from and in addition to your legal fees, title insurance, home inspection, appraisal, and the property tax and fuel adjustments your lawyer settles with the seller. Buyers who budget only for the down payment and the transfer tax still get surprised at closing.
Title insurance is the line item on that list people understand least — and there's a real choice inside it, since the policy your lender requires protects the lender rather than you. What title insurance covers explains the difference and what it costs. And if any buyer on the deal is a non-resident, Nova Scotia adds a separate transfer tax on top of everything here — see the non-resident and foreign buyer guide.
To see the full cash-to-close picture with every line item included, run your numbers through the home buying cost calculator. If you're buying your first home, the first-time homebuyer guide walks through the whole sequence from pre-approval to keys.
Common questions
Is land transfer tax the same as property tax?
No. Land transfer tax (called deed transfer tax in Nova Scotia and real property transfer tax in New Brunswick and PEI) is a one-time cost you pay once, at closing, when the property changes hands. Property tax is an ongoing annual cost charged by your municipality for as long as you own the home. You will pay both — the transfer tax on closing day, and property tax every year after that.
Do I pay this tax if I already own a home and I'm just moving within NS, NB, or PEI?
Yes. The tax applies on every purchase, not just your first one. Selling one home and buying another in the same province doesn't exempt you — the tax is triggered by the new purchase. The only relief is a specific exemption, and in Atlantic Canada the meaningful one is PEI's first-time buyer exemption, which by definition doesn't apply if you've owned before.
Is there a rebate for first-time buyers in Nova Scotia or New Brunswick?
No. Unlike PEI, neither Nova Scotia nor New Brunswick currently offers a first-time buyer transfer tax rebate. Nova Scotia has no province-wide first-time buyer rebate for the Municipal Deed Transfer Tax, and New Brunswick's 1% Real Property Transfer Tax has no first-time buyer break. Budget for the full amount in both provinces.
How is New Brunswick's tax calculated if my purchase price is below the assessed value?
New Brunswick charges 1% on the greater of the purchase price or the property's assessed value. So if you buy a home for $280,000 but it's assessed at $310,000, the tax is 1% of $310,000 — $3,100 — not 1% of what you paid. That means you can effectively pay more than 1% of your purchase price. It's worth checking the assessment before you finalize your closing-cost budget.
Can this tax be added to my mortgage?
Generally no. Land transfer tax is typically due in cash at closing, collected by your lawyer and remitted to the province or municipality. It sits outside your mortgage financing, so it needs to be budgeted alongside your down payment and your other closing costs. If cash to close is tight, that's a conversation to have early — sometimes the structure of the deal can be adjusted, but not on closing day.
What Rahul actually looks at with you
Closing costs are where deals get tight. Here's what gets checked before you commit to a purchase price:
- Which municipality your Nova Scotia property actually sits in — the MDTT rate is set locally, and the difference between the low and high end of the 0.5%–1.5% range is real money on a typical purchase
- Whether your New Brunswick property's assessed value is higher than your purchase price, because that's the number the 1% gets applied to
- Whether a PEI purchase can be structured to stay within the $200,000 first-time buyer exemption, and whether you meet the primary-residence and residency requirements
- Your total cash to close — transfer tax, legal fees, title insurance, adjustments — so the number you're saving toward is the real one
- Whether you have enough left after closing costs, since this tax comes out of cash, not out of your mortgage
- Where the rest of your down payment is coming from, and whether any of it needs a paper trail or a gift letter
Know your real cash to close before you write the offer
Send Rahul the address and he'll confirm the exact transfer tax rate that applies — municipality included — and build out the full closing-cost number with you. No pitch, no pressure.
902-223-8003 · NS Broker #2025-3000996 · NB License #260008857 · AB RECA #LIC-00668583 · BC Broker #MB612306