Prince Edward Island
Land Transfer Tax Calculator
Looking to calculate your land transfer tax in Prince Edward Island? Before you finalize your home purchase, you’ll want to ensure that you’ve put enough money aside to cover items associated with closing the deal.
Land transfer tax (LTT) is one of the largest costs associated with the closing of your home, often overlooked when calculating your total purchase amount. There may be several fees and closing costs related to transferring the property from seller to buyer. It would be best if you prepared to avoid any unpleasant surprises.
Like most other provinces, Prince Edward Island charges a land transfer tax that homebuyers will pay.
nesto’s Land Transfer Calculator will help simplify your budgeting efforts for all the costs associated with your homebuying process.
PEI land transfer tax calculator
Land transfer tax rates in PEI
The Land transfer tax (LTT), known provincially as Real Property Transfer Tax in Prince Edward Island, is calculated based on the purchase price of your property.
PEI Real Property Transfer Tax (RPTT)
|Real Property Transfer Tax
|Up to $30,000
|1% of property value
Note: You may use our Land Transfer Calculator to estimate your required land transfer tax for Prince Edward Island; however, the final value must be confirmed with your solicitor.
PEI Real Property Transfer Tax (RPTT) Fee Rebate
There are various exemptions available to residents of PEI. Residents are defined as those that have lived in the province for at least 6 months before purchasing their property. If they have not resided in the province for 6 months preceding the purchase, they can request a refund of the full RPTT after residing 6 months after the date of purchase.
Real Property Transfer Tax (RPTT) exemptions include
- Real Property Transfer Tax Low-Cost Exemption
- Real Property Transfer Tax First-Time Home Buyers Exemption
- Real Property Transfer Tax Inter-Family Transfer Exemption
- Real Property Transfer Tax Marriage Breakdown Exemption
- Real Property Transfer Tax Wholly Owned Corporation Exemption
In addition, there are certain situations where the registration of a deed of conveyance may be exempt from the Real Property Transfer Tax. These include
- estate transfers;
- corporate transfers;
- trust/trustee transfers;
- mortgage transfers;
- transfers of property to the Crown, municipality or a non-profit organization; or
- non-arms-length transactions such as Deeds of Corrections
PEI & Federal Taxes, Rebates and Regulation
Prince Edward Island has simplified land transfer taxes and fully rebated amounts if exemption requirements are met. Please review in detail to see if these additional taxes impact you. We have included links to the taxes and additional links if any programs exist for rebates.
The federal government announced a measure to prohibit non-Canadians from purchasing residential property in Canada for 2 years in Budget 2022. The legislation known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed on June 23, 2022. This law will come into effect on January 1, 2023, for two years ending on December 31, 2025.
HST in Prince Edward Island is 15%, made up of 5% GST and 10% PST. The amount of rebate you can receive for the GST Portion is 36% of the GST tax amount up to a maximum of $6,300. There is no rebate for the provincial tax portion as of 2023. You may be able to recover some of the GST paid through the federal government’s New Housing Rebate (NHR). You may be eligible for an exemption from paying this tax if you meet certain conditions if this home is your primary residence. Conversely, if you plan to rent out the newly built home, then you may be able to claim the GST as a legitimate business expense. As well as applying to the CRA for the second type of rebate designed for real estate investors, the New Residential Rental Property Rebate (NRRPR).
Down Payment Assistance Program (DPAP) is a pilot program to assist qualified Prince Edward Island residents with modest incomes in purchasing a first home. Eligible applicants can apply to receive a conditionally interest-free loan of up to 5% of the purchase price of a home to a maximum loan of $17,500. The loan proceeds must go toward the down payment for the home and cannot be used for financing, closing or other costs. The loan will bear interest at the fixed rate of 5% per annum, which will accrue and accumulate during the term of the loan and will be forgiven when the loan principal has been repaid in full. Payments during the loan term will be applied to the loan principal, but should the program participant default on their repayment obligations under their loan, the unpaid loan principal and accumulated accrued interest will be due in full. Participants may opt to waive their payments for the first year of the loan, allowing the new homeowners to adjust to unforeseen costs. Check out the factsheet for simplified details.
Energy Efficiency Loan Program can provide PEI residents adding energy efficiency upgrades to their home may be eligible to borrow up to $10,000 from the provincial government to help finance the cost. The Energy Efficiency Loan Program is available to a registered owner of a year-round residential property where the project has been pre-approved by efficiencyPEI. The loan may assist with purchasing efficient equipment, such as a new furnace or heat pump, or it may help with the cost of upgrades to the building envelope, i.e. new windows or air sealing. Finance PEI must approve the loan before any work begins on the project. The loan is unavailable for completed projects.
Provincial Sales Tax (PST) is not collected in Prince Edward Island by your solicitor on the amount of your default (high ratio) mortgage insurance. An insured mortgage is qualified as such when your down payment is less than 20%. Therefore, you will need to purchase default (high ratio) insurance. Although this insurance is added to your mortgage, the taxes (PST) on purchasing this insurance are not. Your solicitor will collect and remit the PST on behalf of the default (high ratio) insurer (CMHC, Sagen, or Canada Guaranty) upon closing.
PEI Property Taxes
Property tax is a levy based on the property’s assessed value, payable to the Minister of Finance per their schedule.
Click on your municipality below for more details on tax rates, payment schedules and contact information.
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