How much is deed transfer tax in Halifax, Nova Scotia when buying a home?
This answer covers the law of Nova Scotia.
Halifax deed transfer tax is a municipal tax, so the rate is set by the municipality rather than by the province, and you should confirm the current Halifax rate before you close. Municipalities set their own rates under the Municipal Government Act, and the rate can go as high as 1.5 percent of the value of the property.
The tax is collected through Land Registry when the deed is registered and recorded. As the purchaser, you complete the Municipal Deed Transfer Affidavit of Value form when the deed is registered, and it is used to calculate the municipal tax. Because the amount depends on the rate and the value used, a worked dollar example is best done with your lawyer once the current Halifax rate is confirmed.
Other costs are separate. The non-resident provincial tax is charged in addition on the non-resident share. Buyers also pay a separate fee to record the deed, and HST applies to new units but not to previously owned units, although a resale buyer may owe the federal portion in some cases, such as when the seller used the unit mainly for business. Ask your lawyer to total all of these closing costs before you sign.
Key takeaways
- Halifax deed transfer tax is a municipal tax, and each municipality sets its own rate.
- Municipal rates can go as high as 1.5 percent of the value of the property.
- The purchaser completes the Municipal Deed Transfer Affidavit of Value form when the deed is registered.
- The non-resident provincial tax, where it applies, is charged in addition to the municipal tax.