One of the most important closing costs buyers should understand in Nova Scotia is the Deed Transfer Tax. Depending on where you are moving from, you may have heard it called Land Transfer Tax, Welcome Tax, or Property Transfer Tax. Here in Nova Scotia, there are two types buyers should be aware of: the Municipal Deed Transfer Tax and the Provincial Non-Resident Deed Transfer Tax.
The Municipal Deed Transfer Tax (MDTT) applies to almost everyone purchasing a home in Nova Scotia. This tax is set by the municipality where the property is located and is paid on closing day. The rate varies depending on the area. In Halifax Regional Municipality, for example, the rate is 1.5% of the purchase price. In many parts of the Annapolis Valley and South Shore, rates can range from 0.5% to 1.5%.
For buyers, this is an important part of budgeting because the amount is calculated as a percentage of the final purchase price.
There is also a Provincial Non-Resident Deed Transfer Tax (PDTT) that applies specifically to non-residents purchasing residential property in Nova Scotia. As of April 1, 2025, the rate increased from 5% to 10%.
This is where many buyers become concerned, but there is an important exception to understand. If you are moving to Nova Scotia and plan to make the property your primary residence within six months of closing, you may qualify for an exemption. Typically, this requires providing proof of Nova Scotia residency, such as a driver’s license or health card.
The distinction matters. Buyers purchasing a seasonal cottage or investment property while remaining residents of another province will likely need to factor that additional 10% tax into their plans.
At the KSRE Team, we believe informed buyers are confident buyers. We work closely with trusted real estate lawyers to make sure there are no surprises on closing day so whether you’re moving across town or across the country, we’re here to help you navigate every detail with confidence.
