What You Need to Know About Deed Transfer Tax in Nova Scotia
When you’re buying property in Nova Scotia, it’s important to be aware of the deed transfer tax. This tax can significantly impact your total cost. Here, I’ll break down what you need to know.
What is Deed Transfer Tax?
Deed transfer tax, also known as Land Transfer Tax or Property Transfer Tax, is a provincial tax imposed on property transfers. It’s a crucial cost to consider when purchasing property.
How is the Tax Calculated?
The deed transfer tax is based on either the purchase price or the assessed value of the property, whichever is higher. This means if you buy a property, the higher value between the two will determine your tax amount.
Who Pays the Tax?
The buyer is responsible for paying this tax. It’s a part of the closing costs, which are essential to register the property’s transfer. So, if you’re buying a property, prepare for this additional expense.
Understanding Municipal Rates
Each municipality in Nova Scotia sets its own deed transfer tax rate. These rates range from 0.5% to 1.5%. It’s important to check the specific rate for the area where you’re purchasing property.
Rates can change, so always consult with a legal professional or the Nova Scotia government for the most current information. This ensures you’re not caught off guard by any unexpected costs.
Are There Any Exemptions?
Yes, certain transactions may be exempt from the deed transfer tax. Common exemptions include transfers between family members, Crown grants, amalgamated corporations, and transfers related to divorce settlements or inheritance.
To know if you qualify for any exemptions, consult with a lawyer or a qualified real estate professional. They can provide guidance tailored to your specific situation.
New 5% Non-Resident Deed Transfer Tax
In 2022, Nova Scotia introduced a new 5% deed transfer tax for non-residents purchasing property. This tax applies unless the buyer plans to relocate within six months of purchase.
As of July 1, 2023, this tax also applies to properties not transferred for value. For example, if a parent deeds 50% ownership of a family cottage to a child living in another province, the tax applies.
Staying Informed
To keep up-to-date with municipal deed transfer tax requirements, refer to the Nova Scotia government’s webpage. I have made a table for your to check out, you can find this
| County | Municipality | Rate | Payable at LRO |
|---|---|---|---|
| Annapolis | Municipality of the County of Annapolis | 1.5% | Kentville |
| Annapolis | Town of Annapolis Royal | 1.5% | Kentville |
| Annapolis | Town of Middleton | 1.5% | Kentville |
| Antigonish | Municipality of the County of Antigonish | 1.0% | Amherst |
| Antigonish | Town of Antigonish | 1.5% | Amherst |
| Cape Breton | Cape Breton Regional Municipality | 1.5% | Sydney |
| Colchester | Municipality of Colchester | 1.5% | Amherst |
| Colchester | Town of Stewiacke | 1.0% | Amherst |
| Colchester | Town of Truro | 1.0% | Amherst |
| Cumberland | Municipality of the County of Cumberland | 1.5% | Amherst |
| Cumberland | Town of Amherst | 1.25% | Amherst |
| Cumberland | Town of Oxford | 1.5% | Amherst |
| Digby | Municipality of the District of Clare | 1.0% | Kentville |
| Digby | Municipality of the District of Digby | 1.0% | Kentville |
| Digby | Town of Digby | 1.5% | Kentville |
| Guysborough | Municipality of the District of Guysborough | 1.0% | Sydney |
| Guysborough | Municipality of the District of St. Mary’s | 1.25% | Sydney |
| Guysborough | Town of Mulgrave | 0.5% | Sydney |
| Halifax | Halifax Regional Municipality | 1.5% | Halifax |
| Hants | Municipality of the District of Hants East | 1.5% | Kentville |
| Hants | West Hants Regional Municipality | 1.5% | Kentville |
| Inverness | Municipality of the County of Inverness | 1.5% | Sydney |
| Inverness | Town of Port Hawkesbury | 1.5% | Sydney |
| Kings | Municipality of the County of Kings | – | – |
| Kings | Town of Berwick | 1.0% | Kentville |
| Kings | Town of Kentville | 1.5% | Kentville |
| Kings | Town of Wolfville | 1.5% | Kentville |
| Lunenburg | Municipality of the District of Chester | 1.5% | Bridgewater |
| Lunenburg | Municipality of the District of Lunenburg | 1.25% | Bridgewater |
| Lunenburg | Town of Bridgewater | 1.5% | Bridgewater |
| Lunenburg | Town of Lunenburg | 1.5% | Bridgewater |
| Lunenburg | Town of Mahone Bay | 1.5% | Bridgewater |
| Pictou | Municipality of the County of Pictou | 1.0% | Amherst |
| Pictou | Town of New Glasgow | 1.0% | Amherst |
| Pictou | Town of Pictou | 1.0% | Amherst |
| Pictou | Town of Stellarton | 1.0% | Amherst |
| Pictou | Town of Trenton | 1.0% | Amherst |
| Pictou | Town of Westville | 1.0% | Amherst |
| Queens | Region of Queens Municipality | 1.5% | Bridgewater |
| Richmond | Municipality of the County of Richmond | 1.5% | Sydney |
| Shelburne | Municipality of the District of Barrington | 1.5% | Bridgewater |
| Shelburne | Municipality of the District of Shelburne | 1.5% | Bridgewater |
| Shelburne | Town of Clark’s Harbour | 1.0% | Bridgewater |
| Shelburne | Town of Lockeport | 1.5% | Bridgewater |
| Shelburne | Town of Shelburne | 1.5% | Bridgewater |
| Victoria | Municipality of the County of Victoria | 1.5% | Sydney |
| Yarmouth | Municipality of the District of Argyle | 1.0% | Bridgewater |
| Yarmouth | Municipality of the District of Yarmouth | 1.0% | Bridgewater |
| Yarmouth | Town of Yarmouth | 1.0% | Bridgewater |
Conclusion
Understanding the deed transfer tax is essential when purchasing property in Nova Scotia. By being aware of the calculation methods, who pays the tax, municipal rates, possible exemptions, and new regulations, you can better prepare for the financial obligations of buying property. Always consult with professionals to get the most accurate and tailored advice for your situation. This way, you can navigate the real estate market in Nova Scotia with confidence.
