Increase to Nova Scotia’s Non-Resident Deed Transfer Tax from 5% to 10%

Posted 17 hours ago by buylandns_waf4lu

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Starting next week (April 1, 2025), Nova Scotia will increase the Non-Resident Deed Transfer Tax from 5% to 10%. This tax applies to residential properties with three or fewer dwelling units purchased by individuals or corporations not residing in Nova Scotia – and yes, it also includes vacant land. 

Government’s Rationale

The provincial government anticipates that this increase will generate an additional $13 million in revenue, but the main reason cited for the increase is to provide Nova Scotians with a competitive edge in the housing market. Finance Minister John Lohr stated that the increase aims to offer residents a “slight advantage” when competing against out-of-province buyers, especially in the context of limited affordable housing options. ​

Concerns from the Real Estate Sector

The Nova Scotia Association of Realtors (NSAR), representing over 2,000 professionals, has expressed reservations about the proposed tax increase. Suzanne Gravel, incoming president of NSAR, likened the tax to a “tariff” on Canadian buyers, suggesting it contradicts national efforts to reduce internal trade barriers. She voiced concerns that such a tax could deter potential buyers, depress property values, and negatively impact local economies, particularly in rural areas. ​

Potential Implications

Here’s my take on this. First of all, Canada has already closed off the Canadian housing market to foreign buyers until 2027 at least. This move goes beyond those restrictions to add punitive taxation on cross-border investments within Canada. It’s a protectionist policy equivalent to a tariff on our own citizens. ​

  • Buyer Hesitation: The heightened tax may cause potential non-resident buyers and developers to reconsider investing in Nova Scotia, leading to reduced demand in certain property segments. This move makes New Brunswick, Newfoundland, and PEI a more attractive investment option relative to Nova Scotia. Out-of-province buyers, particularly for the abundant vacant land in Canada, should be leveraged as an engine for new housing development, not treated as a foreign threat.​

  • Impact on Sellers: Out-of-province buyers are an important factor in the real estate market. With the increased tax, sellers will have fewer bidders, potentially reducing overall property values.​ 

  • Reduced provincial migration:​ Nova Scotia Premier Tim Houston set a target of doubling Nova Scotia’s population to two million people by 2060. The added tax for foreign buyers is likely to deter interest from potential migrants.