New Brunswick Land Transfer Tax Rules

The land transfer tax in New Brunswick is a provincial or municipal tax levied when someone purchases a property. The tax was introduced in 1983 under the Real Property Transfer Tax Act and is applicable to all legal property, including mobile homes. The rate of tax depends on when the property was registered. For properties registered before June 1, 2012, the tax rate is 0.25% of the assessed value. For those registered between June 1, 2012, and March 31, 2016, the rate is 0.5%, and for properties registered after April 1, 2016, the rate is 1%. The tax is calculated based on either the assessed value of the property or the purchase price, whichever is greater. There are no rebates available for residents of New Brunswick, and first-time homebuyers do not receive a rebate or exemption.

Land transfer tax rates in New Brunswick

The land transfer tax in New Brunswick was introduced in 1983 under the Real Property Transfer Tax Act. The tax is calculated based on the purchase price or assessed value of the property, whichever is greater. The current rate is 1% for properties registered after April 1, 2016, while properties registered earlier are taxed at lower rates, depending on the date of registration. For instance, properties registered between June 1, 2012, and March 31, 2016, are taxed at 0.5%, and those registered before June 1, 2012, are taxed at 0.25%.

The land transfer tax is a significant cost associated with closing a property deal, and it is the responsibility of the purchaser to pay this tax. The tax must be paid when the title of the property is transferred, and there are multiple methods available for payment, including credit cards, monthly payment plans, cheques, and general banking.

It is important to note that there are no rebates available for residents of New Brunswick, including first-time home buyers. However, certain types of transfers may be exempt from the land transfer tax. For example, transfers for leases under 25 years, transfers between spouses or between an executor and a beneficiary under a will, and transfers to a Crown Corporation are exempt from the tax.

Exemptions from the land transfer tax

There are a few instances where you may be exempt from paying the Land Transfer Tax in New Brunswick. These exemptions include:

• 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.

It is important to note that there may be other conditions for exemptions, and individuals can contact their nearest Land Registration Office for more information. Additionally, the Land Transfer Tax rate varies depending on the date of the transfer registration. For transfers registered after April 1, 2016, the tax rate is 1%. For transfers registered between June 1, 2012, and March 31, 2016, the tax rate is 0.5%. And for transfers registered before June 1, 2012, the tax rate is 0.25%.

How to pay your 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 as a percentage of the assessed value of the property or the consideration for the transfer. The rate varies depending on the date of the transfer registration. For transfers registered after April 1, 2016, the tax rate is 1%. If the transfer was registered between June 1, 2012, and March 31, 2016, the rate is 0.5%, and for transfers registered before June 1, 2012, the rate is 0.25%.

To pay your Land Transfer Tax in New Brunswick, you have several options:

• 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 included)
• General Banking (online, telephone, teller, or ATM)
• Mail (Send to the Department of Finance and Treasury Board, P.O. Box 100, Fredericton, N.B. E3B 1B0)

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

You may be exempt from paying the Land Transfer Tax in certain situations, such as if your transfer is for a lease of less than 25 years, the property is transferred between spouses or between an executor and a beneficiary under a will, or if the property is transferred to a Crown Corporation or to pay off a loan or debt.

What happens if you don't pay the 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 tax is paid when the title of the property is transferred, and it is calculated based on the assessed value of the property at the time of the transfer.

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, which equates to 9.50% annually.

There are multiple methods to pay your New Brunswick Land Taxes, including:

• Credit Card (Visa, MasterCard, Amex, Union Pay, PayPal)
• Monthly payment plans
• Cheque (Payable to the Minister of Finance and Treasury Board, include your property account number 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)

It is important to note that the Land Transfer Tax in New Brunswick is a flat rate, meaning the rate doesn't increase as the property value rises. For properties transferred after 2016, the transfer tax is 1%.

How to calculate the land transfer tax

The Land Transfer Tax (LTT) in New Brunswick is calculated as a percentage of the property value. The rate of LTT has changed over time, so the date of the property transfer registration is important.

If the property transfer was registered before June 1, 2012, or the sale agreement was signed before March 28, 2012, the LTT rate is 0.25%.

For property transfers registered between June 1, 2012, and March 31, 2016, or with a sale agreement signed before February 3, 2016, the LTT rate is 0.5%.

For property transfers registered on or after April 1, 2016, the LTT rate is 1%.

The LTT is calculated as 1% of the greater of the assessed value of the property or the consideration for the transfer. The assessed value is the real value of the property at the time of registering the transfer.

For example, if you are purchasing a house assessed to be worth $100,000, but your purchase price was $90,000, the assessed value of $100,000 would be used to calculate the LTT.

So, in this example, the calculation would be:

$100,000 assessed property value x 1.00% tax rate = $1,000 land transfer tax payable.

There are no rebates available for residents of New Brunswick, and no exemptions for first-time home buyers.

It is important to note that the LTT is the responsibility of the purchaser and must be paid when the title to the property is transferred.

Frequently asked questions