Who Is Exempt From Nova Scotia's Non-Resident Deed Transfer Tax?

You may be getting a Nova Scotia home through an inheritance, a separation, a trust or a fix to an old deed, and you may live outside the province. In that situation the main worry is often whether the provincial non-resident tax will be added to the transfer.

The tax is large, but it has a list of exemptions. This article walks through them in plain language. It does not cover the separate exemption for buyers who plan to move to Nova Scotia, and it is general information, not advice on your own file.

This article covers the law of Nova Scotia.

What the non-resident tax hits

The tax applies to residential property with 3 dwelling units or less, including vacant land deemed residential, where any ownership interest is granted to a non-resident of Nova Scotia.

The rate is 10% of the Total Ownership Interest being transferred to non-residents, applied to the purchase price or assessed value, whichever is higher. That applies to agreements signed after 31 March 2025, and to transfers after that date with no agreement. Agreements or transfers on or before that date fall under separate guidelines.

Because the tax is on the non-resident share, a transfer to you and a Nova Scotia resident together is taxed only on the part going to the non-resident. A lawyer can confirm how the share is worked out on your transfer.

Family, spouse and separation transfers

Transfers between spouses or common-law partners are exempt from the non-resident tax under section 5 of the regulations. So are transfers between former spouses or partners, but only if they are made to divide marital or jointly held assets.

That second condition matters. A transfer between former partners that is not part of dividing what they held together may not qualify, so the purpose of the transfer is worth confirming before you sign.

Death, wills and estates

Property willed to a non-resident after a death is exempt from the non-resident tax. Section 7 of the regulations also exempts these transfers:

• From an executor to a will beneficiary.
• From an administrator to an intestate heir.
• To a child, grandchild, parent or sibling, where the deed is registered after death.

Being a non-resident heir does not by itself trigger the tax in these cases. Estate transfers can still involve other steps and taxes, so ask the estate's lawyer how the deed will be handled.

Trusts, lenders, corrective deeds and other exemptions

Each exemption has its own wording, and trust and ownership questions are fact-specific. Whether your trust or transfer fits is something a lawyer should confirm against the regulation.

Other costs and what to do next

An exemption from the provincial non-resident tax does not remove other costs. Municipal deed transfer tax is a separate tax, with rates set by each municipality and collected through Land Registry when the deed is registered. Municipalities can set it as high as 1.5 percent of the value of the property. The purchaser completes a Municipal Deed Transfer Affidavit of Value when the deed is registered.

If you pay the non-resident tax and later become a resident within 1 year of acquiring the property, you may apply for a refund with proof of residence. The current application deadline is no later than 2 years after you acquired the property, but the August 2026 changes extended that window from one year to two, so the deadline for an earlier transfer may be different and is worth confirming with a lawyer.

• Identify which exemption you think applies and the regulation section behind it.
• Gather the will, estate documents, marriage or separation papers, or trust documents.
• Confirm the property has 3 dwelling units or fewer.
• Ask your lawyer how the deed should be drafted to show the exemption.
• Budget for municipal deed transfer tax and recording fees separately.

Frequently asked questions