Property Taxes vs Deed Transfer Tax – What you need to know about taxes when buying a home in Nova Scotia

/ Highlander Law Group/

When buying a used (read: previously lived in) home there are two types of tax you will see come up on your statements from your lawyer.

 Deed Transfer Tax

Deed Transfer Tax is a lump sum tax charged on the transfer of title to real property in Nova Scotia. In most municipalities in Nova Scotia this tax is 1.5% percent of the purchase price (the pre-HST price if buying a property subject to HST). It may be less in some places, but it is wise to budget for that amount.



Property tax

Property Tax is the yearly property taxes owing on the property you are buying as assessed each year by the Municipality in which the property is located. These are “adjusted” on closing. What that means is that the total for the year is broken down into a daily rate, and the buyer and seller are responsible for the taxes for the number of days they had possession of the house. So, if the seller has paid in advance the buyer reimburses them, if the seller ought to have paid but has not the buyer pays them and gets a credit.

By: Briana C. O’Grady, J.D

 Have Questions for Us ?

If you have any questions about the taxes owing on your real estate deal you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.  

 

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers