Land Transfer Tax: New Brunswick Fees

If you're looking to buy property in New Brunswick, you'll need to factor in the land transfer tax, which is a significant cost that often gets overlooked. The land transfer tax (LTT), also known as the Real Property Transfer Tax, was introduced in 1983 and applies to all legal property, including mobile homes. The tax rate depends on when the property was registered: before June 1, 2012, the rate was 0.25%; between June 1, 2012, and March 31, 2016, it was 0.5%; and after April 1, 2016, it increased to 1%. This flat rate is calculated based on either the assessed value of the property or the consideration for the transfer, whichever is greater. So, for example, if you're buying a $300,000 property, you can expect to pay a land transfer tax of $3,000. It's important to note that there are no rebates for first-time home buyers in New Brunswick, and the purchaser of the property is responsible for paying the tax.

Land transfer tax rates in New Brunswick

The Land Transfer Tax for New Brunswick was introduced in 1983 under the Real Property Transfer Tax Act. The tax applies to all legal property, including mobile homes. The Land Transfer Tax (LTT) is calculated based on the purchase price of the property and is a flat rate of 1% of the property's assessed value or 1% of the purchase price, whichever is greater. For example, if the property is assessed at $300,000, the fee would be $3,000 (300,000*0.01). There are no exemptions for first-time home buyers, and no rebates are available.

The tax rate varies depending on when the property was registered. For properties registered before June 1, 2012, the land transfer tax rate is 0.25% of the assessed value. For properties registered between June 1, 2012, and March 31, 2016, the tax rate is 0.5% of the assessed value. If the property was registered on or after April 1, 2016, the tax rate is 1%.

The purchaser of the property is responsible for paying the Land Transfer Tax. If more than one person is purchasing the property, they will need to agree on who will pay the tax. The tax is paid when the title to the property is transferred, and there are multiple methods available for payment, including credit card, monthly payment plans, cheque, and general banking.

It is important to note that failing to pay the Land Transfer Tax when transferring the property will result in interest and penalties. The monthly penalty is 0.7591% of the balance due, or 9.50% annually.

Exemptions from the land transfer tax

In New Brunswick, you may be exempt from paying the Land Transfer Tax in the following cases:

• Your transfer is for a lease that lasts for under 25 years.
• The property is transferred between an executor and a beneficiary under a will.
• The property is transferred between spouses.
• The property is transferred to a Crown Corporation.
• The property was transferred to pay off a loan or debt.

Other conditions may also apply, and details can be found by contacting your nearest Land Registration Office.

How to pay your New Brunswick land transfer tax

The Land Transfer Tax for New Brunswick was introduced in 1983 under the Real Property Transfer Tax Act. The tax applies to all legal property, including mobile homes. The Land Transfer Tax is calculated based on the purchase price of your property.

The Land Transfer Tax in New Brunswick is 1% of the greater of the assessed value of the property or the consideration for the transfer for all property with a transfer registration date after April 1, 2016. If the property was registered between June 1, 2012, and March 31, 2016, the tax rate is 0.5%. For properties registered before June 1, 2012, the tax rate is 0.25%.

Who pays the Land Transfer Tax?

The purchaser of the property pays the Land Transfer Tax. If more than one person is purchasing the property, they will need to agree on who will pay the tax.

How to pay the Land Transfer Tax:

The tax is paid when the title to the property is transferred. There are several methods to pay your New Brunswick Land Transfer Tax:

• Credit Card (Visa, MasterCard, Amex, Union Pay, PayPal)
• Monthly payment plans
• Cheque (Payable to the Minister of Finance and Treasury Board, ensure your property account number is on the cheque)
• General Banking (online, telephone, teller, or ATM)
• By mail (Department of Finance and Treasury Board, P.O. Box 100, Fredericton, N.B. E3B 1B0)

If you don't pay the Land Transfer Tax when you transfer the property, you will be charged interest and penalties. The monthly penalty is 0.7591% of the balance due, or 9.50% annually.

What happens if you don't pay the land transfer tax

In New Brunswick, the Land Transfer Tax is 1% of the assessed value of the property or consideration for the transfer for all property with a transfer registration date after April 1, 2016. If you don't pay this tax when you transfer the property, you will face consequences in the form of interest and penalties. The monthly penalty is a 0.7591% charge on the balance due, which equates to an annual rate of 9.50%. This can significantly increase the cost of purchasing a property and should be factored into the budgeting process for any prospective buyers.

The Land Transfer Tax in New Brunswick was introduced in 1983 under the Real Property Transfer Tax Act. This tax applies to all legal property, including mobile homes. The assessed value of the property is determined by its real value at the time of registering the transfer. The purchaser of the property is responsible for paying the Land Transfer Tax, and if multiple individuals are purchasing, they must agree on who will pay. The tax is typically paid when the title of the property is transferred, and there are various payment methods accepted, including credit card, cheque, and general banking services.

There are certain scenarios where you may be exempt from paying the Land Transfer Tax. These include transfers for leases lasting under 25 years, transfers between an executor and a beneficiary under a will, transfers between spouses, transfers to a Crown Corporation, and transfers made to pay off a loan or debt. It is important to note that other conditions may apply, and for specific details, it is recommended to contact the nearest Land Registration Office.

Calculating the land transfer tax

The Land Transfer Tax (LTT) in New Brunswick, also known as the Real Property Transfer Tax, is calculated based on the purchase price or assessed value of a property, whichever is greater. The tax rate depends on the date of registration:

• For properties registered before June 1, 2012, the tax rate is 0.25% of the assessed value.
• For properties registered between June 1, 2012, and March 31, 2016, the tax rate is 0.5% of the assessed value.
• For properties registered after April 1, 2016, the tax rate is 1% of the assessed value.

The assessed value of a property is determined by its real value at the time of registering the transfer. The tax is calculated by multiplying the assessed value by the applicable tax rate. For example, if a property is assessed at $100,000 and the tax rate is 1%, the land transfer tax would be $1,000.

It is important to note that New Brunswick does not offer any rebates for first-time home buyers. Additionally, the LTT in New Brunswick is a flat rate, meaning the tax rate does not increase as the property value rises.

There are certain exemptions from the Land Transfer Tax in New Brunswick. You may be exempt from paying the tax if:

• Your transfer is for a lease that lasts for less than 25 years.
• The property is transferred between an executor and a beneficiary under a will.
• The property is transferred between spouses.
• The property is transferred to a Crown Corporation.
• The property was transferred to pay off a loan or debt.

Frequently asked questions