Nova Scotia Deed Transfer Tax: Rates, Payer, and Exemptions

In Nova Scotia, the buyer pays the deed transfer tax. The Municipal Government Act puts the obligation on the grantee, and the tax is collected through the Land Registry when the deed is registered.¹ Municipal rates run up to 1.5 percent of the sale price. Non-resident buyers pay an additional provincial deed transfer tax of 10 percent on top of that.²

The Buyer Is on the Hook by Default

The Municipal Government Act names the buyer (the “grantee”) as responsible for the tax. Every buyer also has to complete a Municipal Deed Transfer Affidavit of Value form, even when the transfer qualifies for an exemption and no tax is owed.¹

The legal default is not the end of the story. Buyers and sellers can negotiate who actually absorbs the cost in the Agreement of Purchase and Sale, and whatever the contract says will govern. A seller pushing to close might agree to cover it or split it. If the agreement is silent, the buyer pays. Have your lawyer flag this during the review of the purchase agreement so nothing surprises you at closing.

How Much the Municipal Tax Costs

Each municipality sets its own rate by by-law, up to a maximum of 1.5 percent of the sale price.³ The tax is calculated on the sale price of the property.

Halifax Regional Municipality charges the full 1.5 percent, so a $400,000 home purchase produces $6,000 in deed transfer tax.⁴ Not every municipality charges the maximum. Some smaller or rural communities set lower rates, and a few waive the tax entirely. Check the rate for the specific municipality where the property sits before you budget your closing costs.

Non-Resident Buyers Pay an Additional 10 Percent

Non-residents of Nova Scotia pay a separate provincial deed transfer tax of 10 percent on top of the municipal tax. That rate took effect April 1, 2025, doubling from the previous 5 percent. It is calculated on the purchase price or the assessed value of the property, whichever is higher.²

On a $400,000 property, a non-resident owes $40,000 in provincial tax. Combined with a 1.5 percent municipal rate, total deed transfer taxes reach $46,000. When multiple buyers are on the deed, the tax applies proportionally. If one of two buyers is a non-resident holding a 50 percent interest, the 10 percent applies only to that person’s share.

The Exemption for Buyers Moving to the Province

Non-residents who plan to move to Nova Scotia within six months of the transfer date can claim an exemption from the provincial tax. It applies at the individual buyer level, so each non-resident on the deed has to qualify on their own.² After moving, you submit the Proof of Residency form with supporting documents inside the six-month window. If circumstances stop you from relocating on time, you can request a single extension of up to one year from the transfer date.⁵

If you claim the exemption and don’t actually move within the required period, the full 10 percent becomes payable with interest and a potential penalty.² The province does not treat this as a technicality.

Transfers That Don’t Trigger the Municipal Tax

The Municipal Government Act carves out several exempt categories:³

Deeds between married spouses or dividing marital assets after separation.
Property conveyed for a nominal amount like one dollar, often between family members.
Property deeded to a municipality.
Property sold through a municipal tax sale.
Deeds from the Nova Scotia Farm Loan Board to a borrower under the Agriculture and Rural Credit Act.

Property passing from a deceased person’s estate to a beneficiary is also generally exempt. Even when an exemption applies, the buyer still completes the Affidavit of Value form.¹

When and How the Tax Gets Paid

You don’t write a separate cheque to the municipality. The municipal tax is collected through the Land Registry at the time the deed is registered.¹ Your lawyer handles the payment as part of registration, drawing from the funds held in trust for closing. The Affidavit of Value, prescribed under Part V of the Municipal Government Act, requires disclosure of the full purchase price and any other consideration in the transaction, and your lawyer prepares it as part of the closing paperwork.

The provincial non-resident tax runs on a tighter timeline. It must be remitted by the transfer date, with payment received within five business days. Late payment triggers interest and a possible penalty.⁵

1
Government of Nova Scotia. Municipal Deed Transfer and Property Tax
2
Government of Nova Scotia. Non-resident Provincial Deed Transfer Tax
3
Municipality of the County of Kings. Frequently Asked Questions – Deed Transfer Tax
4
Halifax Regional Municipality. Property Tax Information – Tax Bill
5
Government of Nova Scotia. Nova Scotia Provincial Non-resident Deed Transfer Tax Guidelines