Who pays deed transfer tax in Nova Scotia, the buyer or the seller?
This answer covers the law of Nova Scotia.
In Nova Scotia, the purchaser files the Municipal Deed Transfer Affidavit of Value form when the deed is registered, which is used to calculate the municipal tax, but who bears the cost depends on your situation. Whether the agreement of purchase and sale can move that cost to someone else is a question to confirm with a lawyer before you sign.
Municipal deed transfer tax is a separate municipal tax. Each municipality sets its own rate, and the tax is collected through Land Registry when the deed is registered and recorded. Rates can go as high as 1.5 percent of the value of the property. Because rates differ by place, the amount depends on where the property is.
A second tax can apply on top. The non-resident provincial deed transfer tax is charged in addition on the non-resident share, at 10% of the Total Ownership Interest being transferred to non-residents, for agreements signed after 31 March 2025. Buyers also pay a separate fee to record the deed. Buyers and sellers should settle who bears each cost in writing.
Key takeaways
- The purchaser completes the Municipal Deed Transfer Affidavit of Value form when the deed is registered.
- Municipal deed transfer tax rates are set by each municipality and can go as high as 1.5 percent of the value of the property.
- The non-resident provincial tax is separate from the municipal tax and is charged in addition on the non-resident share.
- Whether your agreement of purchase and sale moves the cost to the other party is worth confirming with a lawyer before you sign.