How Land Transfer Tax Works in New Brunswick

Land transfer tax is one of the most commonly overlooked closing costs for homebuyers in New Brunswick, but it is a mandatory expense that needs to be in your budget from day one.

 

Understanding how it works helps you avoid last‑minute surprises and make informed decisions when you buy, sell, or transfer property.​

 

What is land transfer tax in New Brunswick?

 

In New Brunswick, land transfer tax is a provincial tax you pay when a property changes ownership and the deed or transfer is registered. It applies to most real estate transactions, but there are a few exceptions.

 

The tax is calculated at a flat rate of 1% of either the property’s current assessed value or the purchase price, whichever is higher. For example, if you buy a home for $350,000.00 and the assessed value is $300,000.00, the tax is based on the $350,000.00 amount, meaning you would pay $3,500.00 in land transfer tax.​

 

When do you pay it, and who pays?

 

Land transfer tax is paid at the time the deed/transfer is registered with Service New Brunswick, which is usually on your closing date. In a standard transaction, the buyer is responsible for this tax.

 

Practically, your real estate lawyer handles this for you: the tax amount is included in your closing costs, and your lawyer pays it to the province on your behalf when registering the deed/transfer. 

 

Are there any exemptions?

 

The 1% rate generally applies regardless of whether you are buying your first home, moving up, downsizing, or purchasing an investment/commercial property.​

 

There are limited exemptions for certain types of ownership transfers - such as between spouses, to the beneficiary of a Will, or while subdividing to the same owners - but these are narrow and depend on the details of the transaction. Before assuming an exemption applies, it is important to speak with a real estate lawyer who can review your situation.

 

How to budget for land transfer tax

 

Because the tax is based on the higher of the assessed value or the purchase price, it is important not to underestimate the amount when planning your budget. Online land transfer tax calculators provide quick estimates, but they do not account for unique circumstances or other closing costs like title searches, legal fees, and registration fees.​

 

When planning your purchase, it helps to treat land transfer tax as a non‑negotiable line item alongside your down payment, legal fees, and moving costs. Discussing your numbers with your real estate lawyer early in the process can help you understand the full picture of what you will owe on closing day.​

 

Why legal guidance matters

 

Land transfer tax is just one piece of a real estate transaction, but it is closely tied to how and when your property is registered and how your title is protected. Mistakes, delays, or incorrect assumptions about assessed value, the nature of ownership, or missing exemptions can lead to extra costs or issues with registration.​

 

Trio Law Offices offers comprehensive real estate services in New Brunswick, including title searches, contract review, and closing support for buyers, sellers, and those refinancing. The firm combines local knowledge of the New Brunswick real estate landscape with throughout, transparent, step‑by‑step guidance so clients understand each cost, including land transfer tax, before they sign.​

 

If you are planning to buy, sell, or transfer property in New Brunswick, connecting with a real estate lawyer at Trio Law Offices is a straightforward way to confirm how much land transfer tax you will owe and how it fits into your overall transaction. Our team can walk you through the numbers, explain your options in plain language, and make sure every detail—from the agreement of purchase and sale to the registration of your deed—is handled with care.