One of the significant closing costs for homebuyers across Canada, including New Brunswick, is the Land Transfer Tax. This guide covers everything you need to know about the Land Transfer Tax in New Brunswick, including how it is calculated, available payment options, exemptions, and comparisons with other provinces.
What is the New Brunswick Land Transfer Tax
In New Brunswick, the Land Transfer Tax (LTT) is a provincial tax on property ownership transfers. Established in 1983 through the Real Property Transfer Tax Act, it applies to all legal transfers of real estate, including houses, condominiums, commercial properties, and mobile homes.
Current Land Transfer Tax Rates in New Brunswick
New Brunswick employs a flat-rate system for its Land Transfer Tax.
Historical and Current NB LTT Rate Structure
The Land Transfer Tax rate in New Brunswick has increased over time through several legislative changes:
| Period of Registration | Tax Rate | Notes |
|---|---|---|
| Before June 1, 2012 | 0.25% | The current rate applicable to most transfers |
| June 1, 2012 – March 31, 2016 | 0.5% | This also applies if the sale agreement was signed before February 3, 2016 |
| April 1, 2016 – Present | 1.0% | Current rate applicable to most transfers |
These rate changes reflect amendments to the Real Property Transfer Tax Act, with the most recent change announced in the 2016-2017 budget that doubled the rate from 0.5% to 1%, effective April 1, 2016.
Source: NB Land Transfer Tax – laws.gnb.ca
How the NB LTT is Calculated
The New Brunswick Land Transfer Tax is calculated by multiplying the applicable tax rate by the greater of:
- The assessed value of the property, or
- The purchase price
For example, if you purchase a property in Fredericton with an assessed value of $300,000 in 2025, your land transfer tax would be calculated as follows: $300,000 × 0.01 = $3,000
This calculation is straightforward compared to the more complex tiered structures in provinces like Ontario and British Columbia.
How New Brunswick Land Transfer Tax Compares to Other Provinces
New Brunswick’s flat 1% Land Transfer Tax rate places it in the mid-range compared to other Canadian provinces.
| Province | Land Transfer Tax Structure | First-Time Buyer Rebates |
|---|---|---|
| New Brunswick LTT | Flat 1% | None |
| Alberta LTT | No provincial land transfer tax. Apply Property Registration Fee | None |
| Saskatchewan LTT | No provincial land transfer tax, apply Land title transfer fee | None |
| Manitoba LTT | Tiered system: 0% on first $30,000, up to 2% on amounts over $200,000 | None |
| Ontario LTT | Tiered system: 0.5% to 2.5% (higher in Toronto) | Up to $4,000 Or $8,475 in Toronto |
| British Columbia LTT | Tiered system: 1% to 5% (plus additional tax for foreign buyers) | Up to $8,000 |
| Quebec LTT | Tiered system: 0.5% to 1.5% | None |
| Nova Scotia LTT | Tiered system varies by municipality (0.5% to 1.5%) | None |
| Prince Edward Island LTT | 1% flat rate | Up to $2,00 |
| Newfoundland and Labrador LTT | Tiered system: 0.4% to 0.8% | None |
For example, for a property valued at $400,000, here’s how the land transfer tax would differ across several provinces:
| Province | Land Transfer Tax on $400,000 Home |
|---|---|
| New Brunswick | $4,000 |
| Alberta | $450 |
| Ontario | $4,475 |
| British Columbia | $6,000 |
| Quebec | $4,500 |
This comparison demonstrates that New Brunswick LTT is considerably more affordable than Ontario and British Columbia, where luxury properties can face significantly higher rates. However, homebuyers still face a significant cost compared to Alberta and Saskatchewan.
Are There Any Exemptions from the NB Land Transfer Tax
While there are no LTT rebates for first-time homebuyers in NB, the Real Property Transfer Tax Act provides exemptions for the following types of transfers:
- Lease Transfers: Transfers for leases that last less than 25 years
- Estate Transfers: Transfers from an executor to a beneficiary under a will
- Transfers between spouses (including after divorce or separation)
- Government Transfers: Transfers to Crown Corporations or government entities
- Debt Resolution: Transfers made to pay off a loan or debt
These exemptions have specific rules and require certain documents to qualify. Talk to a lawyer to see if your transfer fits the exemption requirements.
Documentation Required for Exemptions
To claim an exemption, you must provide appropriate documentation to verify your eligibility. This typically includes:
- Legal documents establishing the nature of the transfer
- Proof of relationship for spousal transfers
- Court orders or settlement agreements, where applicable
- Loan documentation for debt resolution transfers
Your lawyer will help you prepare and submit the necessary documentation to support your exemption claim. For complex situations, it is recommended that you contact your nearest Land Registration Office for specific guidance.
Land Transfer Tax New Brunswick FAQs
Are there any rebates for first-time homebuyers in New Brunswick?
No, New Brunswick does not offer land transfer tax rebates or exemptions specifically for first-time homebuyers. However, they may qualify for other assistance programs, such as the Home Ownership Program.
Can the NB land transfer tax be added to my mortgage?
No, the New Brunswick Land Transfer Tax cannot be added to your mortgage amount. It must be paid upfront at the time of closing as part of your closing costs. This means you need to have these funds in addition to your down payment.
How is the property's value assessed for tax purposes?
For Land Transfer Tax calculations, the tax is based on the greater of: - The purchase price (consideration) paid for the property, or - The assessed value of the property as determined by Service New Brunswick
Is the land transfer tax the same throughout all regions of New Brunswick?
Yes, the 1% Land Transfer Tax rate is consistent throughout all regions of New Brunswick .This consistency makes it simpler for purchasers to calculate their expected land transfer tax regardless of where in New Brunswick they're buying property.
When buying property in New Brunswick, remember to budget for an extra 1% cost on top of your down payment and other closing fees. Working with experienced mortgage advisors can help you manage this and other parts of the home-buying process effectively.
