Nova Scotia Land Transfer Tax

This guide provides information about Nova Scotia Deed transfer tax (Land transfer tax), including upcoming changes, exemptions, calculation methods, and municipal rates, to help you navigate your real estate transaction.

What Is Nova Scotia Land Transfer Tax?

When a property is purchased in Nova Scotia, the buyer must pay a Deed transfer tax (DTT) to transfer ownership and register the home legally under their name. It is calculated as a percentage of the greater of the purchase price or assessed value of the property.

Nova Scotia Land transfer taxes consist of two distinct components: the Provincial Non-Resident Deed Transfer Tax (NRDTT) and the Municipal Deed Transfer Tax (MDTT).

Land transfer taxes help fund important community services like infrastructure, transit, and recreation programs. As a homebuyer, it’s crucial to understand how these taxes are calculated so you can properly budget for them in your overall closing costs.

Nova Scotia Provincial Non-Resident Deed Transfer Tax

The Provincial Non-Resident Deed Transfer Tax (NRDTT) is a significant consideration for non-residents looking to purchase property in Nova Scotia. Non-residents pay a 5% Provincial Deed Transfer Tax (PDTT) on any residential purchase, including vacant land zoned as residential, with 3 or fewer dwelling units.

April 2025 Tax Increase on non-resident DTT

The upcoming change to the non-resident DTT rate will significantly increase non-resident buyers’ costs. Effective April 1, 2025, the NRDTT will double from 5% to 10% of the property value.

This increase will apply to:

• Agreements of Purchase and Sale signed after March 31, 2025
• Other property transfers without such agreements occurring after March 31, 2025

Source: https://www.reminetwork.com/articles/nova-scotia-to-double-deed-transfer-tax/

Who Qualifies as a Non-Resident?

For NRDTT purposes, a non-resident is defined as anyone who does not reside in Nova Scotia at the time of the property transfer. This includes:

• Residents of other Canadian provinces and territories
• Foreign nationals
• Corporations where non-residents hold more than 50% of the ownership interest

For properties with multiple purchasers, the NRDTT applies if more than 50% of the ownership interest is granted to non-residents. For example, if two people purchase a property as joint tenants and one is a non-resident, the NRDTT would not apply since the non-resident ownership is exactly 50%, not exceeding the 50% threshold.

Nova Scotia residents do not pay the 5% PDTT but still must pay applicable Municipal Deed Transfer Taxes. Non-residents can receive a PDTT rebate and only pay municipal taxes if they become permanent residents of Nova Scotia within six months of the property transfer date.

Nova Scotia Municipal Deed Transfer Tax (MDTT)

Unlike the Provincial Non-Resident Deed Transfer Tax, which only affects non-residents, the MDTT impacts every real estate transaction in municipalities that have implemented this tax, regardless of the buyer’s residency status.

Each municipality in Nova Scotia has the authority to set its own MDTT rate, leading to significant variations across the province. These rates currently range from 0% to 1.5% of the property’s value, making your property’s location a key factor in determining your total closing costs.

The MDTT is calculated based on the property’s sale price and is collected by Land Registration Offices on behalf of municipalities when the deed is registered. This tax must be paid within 30 days of the property transfer, or a 10% penalty may be applied to the unpaid amount.

Calculate Nova Scotia Deed Transfer Tax

For residents of Nova Scotia, only the Municipal Deed Transfer Tax (MDTT) applies. The calculation is straightforward:

MDTT = Property Value × Municipal Tax Rate

For non-residents, both the Provincial Non-Resident Deed Transfer Tax (NRDTT) and the Municipal Deed Transfer Tax (MDTT) apply, making the calculation:

Total Deed Transfer Tax = (Property Value × NRDTT Rate) + (Property Value × MDTT Rate)

Sample Calculations for Different Property Values

To help illustrate how these taxes scale with property values, here are examples for different price points in Halifax (with a 1.5% MDTT rate):

For Nova Scotia Residents

• $300,000 property: $4,500 (MDTT only)
• $500,000 property: $7,500 (MDTT only)
• $750,000 property: $11,250 (MDTT only)
• $1,000,000 property: $15,000 (MDTT only)

For Non-Residents (Current 5% NRDTT)

• $300,000 property: $19,500 ($4,500 MDTT + $15,000 NRDTT)
• $500,000 property: $32,500 ($7,500 MDTT + $25,000 NRDTT)
• $750,000 property: $48,750 ($11,250 MDTT + $37,500 NRDTT)
• $1,000,000 property: $65,000 ($15,000 MDTT + $50,000 NRDTT)

For Non-Residents (After April 1, 2025, with 10% NRDTT)

• $1,000,000 property: $115,000 ($15,000 MDTT + $100,000 NRDTT)
• $300,000 property: $34,500 ($4,500 MDTT + $30,000 NRDTT)
• $500,000 property: $57,500 ($7,500 MDTT + $50,000 NRDTT)
• $750,000 property: $86,250 ($11,250 MDTT + $75,000 NRDTT)

How do different regions in Canada charge their Land transfer tax?

• BC Property Transfer Tax
• Ontario Land Transfer Tax
• Toronto Land Transfer Tax
• Alberta Land Transfer Tax
• Saskatchewan Land Transfer Tax
• PEI Land Transfer Tax

Land transfer tax Nova Scotia FAQs

Summary

With the Provincial Non-Resident Deed Transfer Tax set to double from 5% to 10% on April 1, 2025, timing considerations have become even more critical for non-residents planning property purchases in Nova Scotia. Understanding the Nova Scotia Deed transfer tax system is essential for properly budgeting your real estate purchase and avoiding unexpected costs at closing.

Article Sources

1. Provincial Non-Resident Deed Transfer & Property Tax, Government of Nova Scotia