Which tax may be payable at closing when transferring NS real estate?

• A. Land transfer tax
• B. Capital gains tax
• C. GST
• D. Stamp duty on personal property

Answer: (A)

Land transfer tax is the closing-cost you’d expect with the transfer of real property in Nova Scotia. It’s a provincial tax that is charged when the deed is registered and the title transfers, so the amount is typically payable at closing. The tax is calculated from the purchase price and can vary by price brackets; some buyers may qualify for rebates or exemptions (for example, certain first-time homebuyer programs) that reduce the amount due.

Capital gains tax is a tax on profit from selling property, and it’s handled on your tax return after the sale—not paid at the closing table. GST (or HST) may apply in specific scenarios, such as new construction, but it isn’t a standard closing tax on typical resale homes. Stamp duty on personal property doesn’t come into play for real estate transfers in Nova Scotia.