What Closing Costs Do Home Buyers Pay on Top of a Mortgage in Nova Scotia?

When you plan your financing for a home purchase, it is easy to focus on the down payment and the mortgage. But several government charges are due in cash at closing, and they do not come out of your mortgage. Knowing what they are early helps you avoid a shortfall.

This article walks through the main government charges a Nova Scotia buyer may face: municipal deed transfer tax, the fee to record the deed, HST, and, for non-resident buyers, a provincial tax. It does not give dollar amounts, because they depend on your municipality, the price and your situation.

This article covers the law of Nova Scotia.

Municipal deed transfer tax

Municipal deed transfer tax is a municipal tax, and each municipality sets its own rate. Municipalities set these rates under the Municipal Government Act, and the rate can go as high as 1.5 percent of the value of the property. That means two buyers paying the same price in different municipalities can owe different amounts.

The tax is collected through Land Registry when the deed is registered and recorded. The purchaser must complete a Municipal Deed Transfer Affidavit of Value form when the deed is registered, and that affidavit is used to calculate the municipal tax.

Because rates differ, check the province's municipal deed transfer tax rates PDF for the municipality where the property is located. Your lawyer can also confirm the rate that applies to your purchase.

Recording fee and HST

Buyers also pay a separate fee to record the deed. It is a different charge from the deed transfer tax.

HST is charged on new units but not on previously owned units. If you are buying a resale home, you may still owe the federal portion in some cases, for example where the seller used the unit mainly for business. Whether that applies to a particular purchase depends on the facts, so ask your lawyer or an accountant.

• New home: HST generally applies.
• Resale home: HST generally does not apply, with limited exceptions for the federal portion.
• Either way, plan for the recording fee as a separate cash cost.

The non-resident provincial deed transfer tax

If any ownership interest is granted to a non-resident of Nova Scotia, a provincial non-resident deed transfer tax may apply to residential property with 3 dwelling units or less, including vacant land deemed residential. The rate is 10% of the Total Ownership Interest being transferred to non-residents, for agreements signed after 31 March 2025 and transfers after that date with no agreement. The province's August 2026 release says it remains at 10 per cent.

It is calculated on the purchase price or the assessed value of the property, whichever is higher. It is a provincial tax on the non-resident share, and it is charged in addition to the municipal deed transfer tax.

Agreements or transfers on or before 31 March 2025 fall under separate Nova Scotia Provincial Non-resident Deed Transfer Tax Guidelines.

Deferral, exemptions and refunds for the non-resident tax

If an individual buyer states an intention to move to Nova Scotia, the non-resident tax is not payable at the time of transfer. The buyer must later provide proof of Nova Scotia residency within the required timeframe, using the Proof of Residency Form and supporting documents submitted online. The window is 12 months for transfers on or after 6 August 2026, and 6 months for transfers before that date.

If proof is not provided on time, the Administrator must assess tax and interest and may assess a penalty. One extension of an extra year may be requested for extenuating circumstances such as illness or a delayed employment transfer. An individual who paid the tax and became a resident within 1 year may apply for a refund no later than 2 years after acquiring the property.

Some transfers are exempt, including transfers between spouses or common-law partners, property willed to a non-resident after a death, and transfers to a foreclosing mortgagee. Whether an exemption fits your situation depends on the details, so confirm with a lawyer.

Property tax comes later, and what to do next

Property tax is not a closing cost, but it affects your budget afterward. Property assessments are determined by the Property Valuation Services Corporation (PVSC), and the bill applies the municipality's rate, stated per $100 of assessment, to the assessed value.

• Find the municipal deed transfer tax rate for the property's municipality in the province's rates PDF.
• Ask your lawyer to estimate the recording fee and any HST that applies.
• Tell your lawyer early if any buyer is not a Nova Scotia resident.
• If you plan to move here, ask what documents you will need to prove residency within the window.
• Keep your cash for these charges separate from your down payment.

Frequently asked questions