If you’re buying a home in Nova Scotia, one of the most important, and often surprising, closing costs is the property transfer tax, officially known as the Deed Transfer Tax (DTT).
Unlike other provinces where property transfer tax is provincial, in Nova Scotia, it’s set and collected by each municipality, and it’s based on your final purchase price.
In this guide, Halifax mortgage broker Alex Lavender explains how property transfer tax is calculated in Nova Scotia, how much you can expect to pay, and why the amount can vary depending on where you’re buying.
Table of Contents
What Is Property Transfer Tax?
Property transfer tax (or Deed Transfer Tax) is a one-time municipal tax paid by the buyer at the time of closing. It is calculated as a percentage of the home’s purchase price, not the assessed value.
This tax is required in nearly every municipality in Nova Scotia and must be paid in full on closing day. It cannot be rolled into your mortgage.
How Is It Calculated?
The formula to calculate property transfer tax in Nova Scotia is:
Purchase Price × Municipal Tax Rate = Property Transfer Tax
Each municipality sets its own rate, typically between 0.5% and 1.5%. The tax is applied to the final purchase price listed in your Agreement of Purchase and Sale.
Example Calculation
If you purchase a home for $400,000 in Halifax, where the deed transfer tax rate is 1.5%, the calculation would be:
$400,000 × 1.5% = $6,000
This $6,000 must be paid at closing and is part of your overall cash-to-close budget.
Transfer Tax Rates by Municipality
| Municipality | Deed Transfer Tax Rate |
| Halifax (HRM) | 1.5% |
| Cape Breton Regional Municipality | 1.5% |
| Town of Lunenburg | 1.5% |
| Municipality of the District of Lunenburg | 1.25% |
| Town of Truro | 1.5% |
| Municipality of the District of East Hants | 1.5% |
| Town of Kentville | 1.5% |
Rates are current as of June 2025 and may change. Always confirm with your lawyer or municipal office before closing.
Non-Resident Deed Transfer Tax in Nova Scotia
If you are a non-resident of Nova Scotia, as of April 1, 2025, you may be required to pay a Deed Transfer Tax of 10% of the property’s purchase price.
Exemption for New Residents
There is an exemption for non-resident individuals who move to Nova Scotia within six months of the purchase. This exemption applies at the individual grantee (buyer) level.
All non-resident individuals listed on the title must provide proof of residency within six months for the exemption to apply. If even one buyer does not meet this requirement, the full 10% tax may still apply.
When and How Is It Paid?
The Deed Transfer Tax is paid on the day of closing, typically through your real estate lawyer. It will appear in your statement of adjustments and must be paid in full before the property can be registered in your name.
This tax cannot be financed through your mortgage. It must be covered with your available cash at closing, alongside other upfront costs like legal fees and your down payment.
Does Everyone Pay The Property Transfer Tax?
Yes, with very few exceptions. All buyers in Nova Scotia are required to pay the property transfer tax, regardless of whether they are a first-time homebuyer or purchasing an investment property. Exemptions are extremely limited and typically apply only in special cases like inter-family transfers or municipal programs.
Common Misconception: Property Transfer Tax vs Property Tax
It’s important to understand that property transfer tax is not the same as annual property tax.
- Property transfer tax is a one-time tax paid at closing.
- Property tax is an annual municipal tax based on the assessed value of your home.
Buyers should budget for both when planning their total cost of homeownership.
Why You Need to Budget for It Early
Because this tax is calculated as a percentage of your purchase price, it can add up quickly. For example:
- $350,000 home in Halifax = $5,250 in DTT
- $500,000 home in the Town of Lunenburg = $7,500 in DTT
- $400,000 home in Kentville = $6,000 in DTT
If you’re buying in a higher-priced market or putting less money down, you’ll need to ensure this cost is covered in your total available funds.
In Conclusion
The property transfer tax is a significant part of closing costs in Nova Scotia and should never be overlooked during the home buying process. While it’s a straightforward calculation, the actual amount you’ll pay depends entirely on where you buy and how much you pay for the home.
Understanding how this tax works, and budgeting for it early, can help you avoid unpleasant surprises on closing day.
Get Expert Help with Your Home Purchase
Alex Lavender is a licensed mortgage broker helping Nova Scotians plan their home purchase from start to finish. He can walk you through every part of your budget, including transfer tax, legal fees, insurance, and more, so you’re fully prepared when it’s time to close.
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FAQ
How is property tax calculated in Nova Scotia?
How is property transfer tax calculated in Nova Scotia? Property transfer tax, also called Deed Transfer Tax, is calculated by multiplying the final purchase price of the home by the municipality’s transfer tax rate. Most rates in Nova Scotia range from 0.5% to 1.5%, depending on where the property is located.
When do I pay property transfer tax?
This tax is paid on closing day through your lawyer. It’s included in your statement of adjustments and must be paid in full before the home can be legally transferred into your name. It cannot be added to your mortgage and must be covered with your available cash at closing.
Is property transfer tax the same as annual property tax?
No. Property transfer tax is a one-time tax paid when you buy a home. Annual property tax is a recurring municipal tax based on your home’s assessed value and paid each year. Both are separate and should be budgeted for accordingly.