New Provincial Taxes For Non-Residents

Update as of April 1 2025

On 1 April 2025, the Non-resident Provincial Deed Transfer Tax rate increased from 5% to 10%. The increase applies to all Agreements of Purchase and Sale signed after 31 March 2025 and other transfers after 31 March 2025 without an Agreement of Purchase and Sale.

The tax is calculated on the purchase price or the assessed value of the property (whichever is higher). The tax:

• applies to Agreements of Purchase and Sale and other transfers without an Agreement of Purchase and Sale
• applies to deeds being registered where any ownership interest is being granted to non-residents of Nova Scotia
• is based on the ownership interest being transferred to non-residents

You can download a PDF summary from the Government of NS: https://novascotia.ca/finance/en/home/taxation/tax101/docs/Nova-Scotia-Provincial-Non-resident-Deed-Transfer-Tax-Guidelines.pdf

UNDERSTANDING THE PROVINCIAL DEED TRANSFER TAX (PDTT)

The Provincial Deed Transfer Tax (PDTT) is a 10% tax applied to certain residential property purchases in Nova Scotia. It is separate from and in addition to the municipal deed transfer tax charged by municipalities (commonly 1.5% in most municipalities).

Who Does The PDTT Apply To?

The PDTT generally applies to:

• Individuals who are not residents of Nova Scotia at the time of closing

• Buyers who do not intend to move to Nova Scotia within six months

• Non-resident parents or co-signers

• Purchasers of seasonal or recreational properties

• Certain corporate or trust purchases

A rebate may be available if the purchaser becomes a Nova Scotia resident within six months and meets eligibility requirements.

How Is The PDTT Calculated?

The PDTT is calculated as 10% of the purchase price (or fair market value, whichever is greater). It is payable at closing when the deed is registered.

Example:

You do not intend to move to Nova Scotia within six months of closing and wishes to purchase a $400,000 home in a municipality with a 1.5% deed transfer tax:

• Municipal Deed Transfer Tax (1.5%) = $6,000

• Provincial Deed Transfer Tax (10%) = $40,000

• Total Deed Transfer Taxes = $46,000

For full details and eligibility information, visit:

https://www.novascotia.ca/non-resident-provincial-deed-transfer-tax

For more information, you can read the updated Non-resident Deed Transfer Act.

To read the full list of amendments, visit the legislation and go to Part III.

For questions about the Act or the amendments, please email NSDeedTransferTax@novascotia.ca

The back story was originally published on April 4, 2022.

As you know, the Nova Scotia Association of REALTORS® (NSAR) has been advocating against the newly introduced Non-Resident Deed Transfer and Property Taxes. NSAR believes these taxes would have unintended and negative consequences on our economy. We are very pleased with this announcement.

In an effort to slow the market, the government has introduced a new Provincial Deed transfer Tax and Property Tax for Non-residents of NS in the 2022-2023 budget. The legislation went into effect on April 1 2022 but as of yet no one is really clear about all the details. There are extensive exemptions from the rules; however, how these exemptions will be defined is still ambiguous. Needless to say, this legislation is a kick in the teeth to the many cottage owners, and part-time folks who call NS Scotia home for part of the year.

The new Non-Resident Deed Transfer Tax is one thing, but the new Provincial Property Tax for Non-Residents is a real kick in the teeth. The $2.00 per 1$00 of the property’s assessed value, as determined by the Property Valuation Services Corporation, is unbelievable and may potentially cause more harm to our fair Nova Scotia than good.

Did the government even think this through?

This From Away Tax seems on the surface, contrary to all the efforts the government has made in recent months to market Nova Scotia as a friendly place to call home and to invest in.

Think of the negative impacts on our smaller communities in NS filled with out-of-province vacation homeowners. Chester, for example has generations of family-owned property, most of whom have contributed to local community through philanthropy, supporting local business, volunteering, and services. Without even the courtesy to let these homeowners know that this tax was something to prepare for, they were hit with the news, like the rest of us and the legislation came into effect April 1, 2022. In the event these homeowners need to sell their home, will the home now be cost prohibitive to other out of town buyers, and how many local home buyers are actually in the market for vacation property located far out the city center? It is hard to believe that this will have impact what so ever, to help the housing shortage we are seeing in our city centers.

Think of the impact to families who want to send their children to one of our local universities. With residences filled to capacity and the rental vacancy rate at an all-time low, these investors who would have purchased property to house their student here in NS will have to seriously consider the impacts of this new tax. One must ponder whether the government considered the impact of this legislation to its fullest. Even considering the revenue this will generate, the losses seem far greater, at least from this vantage point. 

Here is what we know right now.

Who do these taxes apply to?

These taxes apply to people who do not live in Nova Scotia but own or buy property here.

When are these taxes being implemented?

These taxes are being implemented April 1, 2025

Are these taxes in addition to municipal taxes?

Yes.

The provincial Deed Transfer Tax for Non-residents is not related to the municipal deed transfer tax.  It is a separate, additional tax of 10 per cent.

The provincial Property Tax for Non-residents is not related to the property taxes levied by municipalities. It is an additional property tax of $5.00 per $100 of assessed value.

Are there exemptions to these taxes?

Yes.

For a complete list of exemptions, how the tax is paid and forms required for the property transfer, review the Non-resident Provincial Deed Transfer Tax Guidelines (PDF).

The Nova Scotia Non-Resident Property Tax will not apply to residential properties that contain more than 3 units. It will not apply to residential properties that are leased to individual Nova Scotian residents for a period of at least 12 months. An exemption from this tax will be provided if 50 per cent or more of the owners are residents of Nova Scotia.

Do these taxes apply to vacant land?

Yes. These taxes apply to vacant land that is zoned residential.

More Information

The province has created a website with the latest information on the new Non-Resident Deed Transfer Tax and Property Tax. It will be updated as the legislation is introduced. 

The Nova Scotia Association of REALTORS® is anticipating that more information on these taxes from the Finance and Treasury Board will be released soon. We will provides updated information to our clients as it  becomes available.